When payday arrives, where do you usually spend your money on? How about when you get your bonus cheque? Does it all go to one place or do you spend it on different things? Do you usually save your bonuses specifically for a trip or a holiday? When you look back on your income and your expenses, do you notice if you have some money left in your bank account? Do you actually set aside a percentage of your income for a savings account? If you answered no, aren’t you afraid that you will not have a financially secured future? Being wise with your money now is a good start to gain financial security and stability, especially in the years to come for your future and of course retirement. It is a daunting task – saving for the future, but there are a lot more different ways you can save up without even having to generate a greater income than what you are earning now. The key to future financial security and stability is knowing where to invest money now.
Savings vs Investments
When you look and think about the word investment, it seems scary and overwhelming. With the different options, risk factors, whether if it is for long term or short term, and safety… you just might lose your mind thinking where you should place your money. You may think that leaving around 20% of your income per pay cheque in your bank account is already okay for your savings. Not only is it hassle-free, but it is worry free as well. With the bank’s annual interest rate without you having to touch and place your money on other channels, you would not only save money but earn too, right? When you leave your money in a savings account, you would only be earning peanuts with the bank’s ludicrous interest rates. It does not cover the annual inflation of money, so essentially, you would be left with the same amount of money from how many years ago if you leave it in the bank. Investing your money is really the way to go because of the earning potential and possibilities.
Knowing the Right Investment
Investing will require a bit of time and effort from you but it will all be worth it in the end. In investments, it is important to realize that the more you know – the better. It is okay if you want a low-risk investment, the only downside to that is the yield in return will usually be much lower compared to when you are a more aggressive investor. But nonetheless, if you invest in the right channels, whether it is a low or high-risk investment, you will surely gain returns. Studying the different channels on where to invest money will give you the complacency that you would be able to wisely increase the value of your money in the coming years. Knowing your options is the first step to financial literacy that would bring you financial security and stability in your future.
An Investment That Will Work for You
Passive income is the best kind of income one could think off. This means that when you invest in a channel, you will earn without having to do anything or invest much of your time and effort on it. In other words, you let your money work for you so that you get returns even as you are sleeping. A good example of a passive income earning investment is investing in service providers who are buying to let cars. What they do is with the money you invested, they will acquire cars – which will be under their care with you as the investor. These cars will be leased out to potential customers, most of which those who have bad credit, so the interest rates charged are a bit higher than standard rates. Because of this, the service providers are able to give out monthly pay-outs with earnings to investors. The safety guarantee of this type of investment is that you still have the rights to the car as an investor, so if the service provider gets bankrupt, you can easily have the car repossessed to your advantage.
Income While You Sleep
The beauty in investing in buy to let cars is that it takes away the headache car owners experience because of their cars – repairs, maintenance, insurance policies, and the like. Because the service providers are the designated caretakers of the car, you would not also need to be worried about problems when dealing with potential lessees. The beauty in it really is the potential income you earn even as you sleep. Investing in buy to let cars would allow a worry-free investment with low risk and guaranteed returns.
About The Author:
Lloyd Parkinson is a Content Marketing Executive at Revive.Digital. Lloyd has experience writing content for the purpose of marketing on behalf of B2B and B2C organizations ranging from legal services, insurance brokers, financial services, all the way to the music and entertainment industry. He conducts research and writes about an extensive number of topics. Lloyd aims to educate his readers through his creative writing by providing them with informative and valuable content. He seeks to simplify complex topics for general readers as well as writing technical content for the well informed.