subject: Tips to Make Your Money Work for You [print this page] Tips to Make Your Money Work for You Tips to Make Your Money Work for You
Today everyone wants to make the best use of his or her money. Mostly people prefer to keep their extra money in savings account to earn maximum profit on it than to use it to pay off their borrowings. They are actually unaware of the facts that they have to pay higher interest rates on their borrowing than they will receive from their savings. There is no point of using your entire extra cash in paying off your borrowings or keeping them in the savings account. It is always necessary to keep some cash with you for emergencies. Obviously, this would not be possible if you have heavy debts to pay, especially when you have to pay high rate of interest on them and in this case your first priority is to pay off the debts instead of savings. However, once you have got enough control on your finances, you next aim is to save some cash for any unwanted circumstances.
Whenever you have got some extra cash, never rush to make your decisions. You need to make best use of your money and for this reason it is important to shop around for the best deal for your money. What we mean by best deal here is to make certain that the place where you are investing your cash will give you the higher rate of interest for your money. So, a careful selection is required to make your money work best for you.
One major point, which you need to bear in mind, is to make certain that the interest rate you are earning on your money is greater than the current inflation rate. For instance, if the inflation rate is 2.5%, then you must have to earn this amount net (after tax) each year. If you fail to do so, then you will end up in losing your money. This is the one major reason why experts stress on not to save money in hand, because apart from the security risks, your money will steadily disappear through the effects of inflation.
It is beyond the scope of this article to mention all the possible investments here. you have to shop around yourself as market conditions are always kept changing and the investment that seems best today are not necessarily best tomorrow. So, you have to view the broader prospect of everything in order to get the best out of it.
Over the last few decades, stocks and shares have been considered as the best performing investments, but the recent falls in the stock market returns have changed the mind and thinking of the people considerably. People are now looking for new investments prospects such as property. It is always suggested to seek help from the qualified independent financial advisers who will study your and market current financial condition and suggest you strategy in the light of your requirements and needs.
