So, you’ve got some money in your pocket, and you’re considering what to do with it. Most people will just tell you to put it straight into your bank account so that it’s safe, and while this is a fair point – there is so much more than you can do too.
When managing money, you should try and start thinking about how you can do more with what you have because believe it or not – the options are pretty endless if you know anything about finances.
But for a lot of you, you might not, and that’s okay. Here is a list of all the most common directions to take your money in.
Savings account
Owning a savings account is probably the most common form of managing your money. It’s very simple and you don’t have to do much.
Whenever you earn some money, you put a percentage of that into your savings and leave it there untouched. You can do this as often as you want depending on how much money you make.
One very good tip for doing this is setting up an automatic transfer from your regular account to your savings once a month, or once every two weeks depending on your circumstances.
This way you don’t have to remind yourself to do anything, and before you know it you’ll have a generous amount of money staring back at you.
Investing
Investing is something that sounds a lot more complicated than it actually is. Essentially, you see something that looks successful; like a business in the stock market that has high shares.
You then put some of your money into it, and when the number goes up – you get a profit, as well as all your money back.
It’s a risky game, but when you keep your head screwed on tightly, as well as carrying a bit of luck, you may do quite well. You can even make money from a lazy portfolio if you take the laid back approach when it comes to riding the stock market wave with all of its ups and downs.
Financial advisor
If you’re really not sure what direction you want to take things and don’t feel as though you have enough information to make such important decisions – find yourself a financial advisor.
These are great to have because you arrange a meeting, and essentially discuss your money over a cup of tea.
They ask you tons of questions about your general spendings as well as your earnings, and they come to a very decisive conclusion on what you can do, and what you probably shouldn’t do.
This will give you a real insight into future decisions, and you can always arrange another meeting if you have further questions in the future if circumstances were to change.
Now you have some general ideas, have a think about what you will benefit from. At the end of the day, what you do with your money is entirely up to you, but it’s always good to have a little structure.
(contributed post)