What to do with your Money Instead of Putting it into Savings

saving

Throughout the coronavirus crisis, central banks throughout Europe have sought to underpin their quantitative easing measures with historically low base interest rates. 

So, while savings rates are gradually creeping up from their all-time lows recorded last year, most accounts continue to offer a paltry average of 0.85% across the board.

With this in mind, you may want to consider seeking out alternatives to traditional savings accounts, especially if you’re in the market for a superior return on investment. Here are some options to keep in mind: 

  1. Stocks and Index Trading

The stock market offers a viable and potentially reliable return on your accrued savings, and one that strikes the optimal balance between risk and reward.

The traditional market sees you invest in individual stocks and company shares, requiring you to assume ownership of the underlying asset and retain this as a secure store of wealth.

In some respects, however, indices trading is a more reliable strategy. The reason for this is simple; as it enables you to invest in a broader and more diverse of options that minimises your exposure and distributes your risk more evenly. 

You can even target blue-chip indexes such as the FTSE 100 or the DAX30 in Germany, affording you access to multiple, large-cap equities that can deliver incremental dividends over time.

  1. Forex Trading

Another option is forex trading, although it’s important to note that this is a considerably more volatile marketplace that affords you access to inflated leverage.

It’s also a more flexible asset class, as international currencies can be traded as derivatives in a way that allows for large scale speculation. This way, you can profit even as the market and individual assets depreciate in value, with this offering significant appeal and potentially larger, margin-based returns.

However, while having access to leverage of up to 100:1 allows you to open up disproportionately large positions that offer optimised returns, there’s also the potential to lose more than you may be able to afford.

So, this option is only really ideal if you have a healthy appetite for risk, while it’s also suitable for those of you with large amounts of income to invest.

  1. Set Up Your Own Business

This is another increasingly popular option, and one that can provide those of you with an entrepreneurial bent the opportunity to shape their own professional destiny.

This applies to everything from your working schedule to wealth and the accomplishment of long-term financial goals, while becoming a business-owner also allows you to scale your efforts and build a potentially life-changing entity.

However, you should note that this will require significant energy and passion, while you’ll ideally boast genuine commercial acumen and a solid foundation of expertise.

Also, you will be required to cover startup costs and secure funding for your business, so your ambitions will need to be tailored to suit your capital holding and real-time circumstances.

How to Save Money when Renovating your Home

Home renovation

Buying a home is a major investment. Indeed, it is probably going to be one of the most significant investments you ever make. That’s why more of us are opting instead to either invest in what we already own or buy a home with the intent of renovating it into something special. However, many do not think to calculate the costs of renovating their home and end up in over their heads with half-finished ideas and not enough money left in the pot to cross the finish line.

So, below we’ve gone through a few ideas to help you save money when renovating your home on a budget.

Assess the overall project

Sometimes you need to take a step back to see the wood for the trees. Before you start or make any serious investments, look at the renovation project as a whole. This will help you decide on all final renovations that you want to make, potentially cutting out ones that are not as essential, which is vital when on a budget. If you know what you want to achieve with your renovation overall, you’re also more likely to be able to settle on exactly what you’ll be able to do yourself and what you’ll need to hire people in for.

Measurements and planning

If you measure and plan your project correctly and accurately you can save money on materials, as well as time. The general rule of thumb is to “measure twice and cut once” but we’d take it a step further and say measure three times, if possible.

Do it yourself

If you can identify what projects or parts of the project can be done effectively by yourself, you can save huge amounts on labor costs by going the DIY route. This way, all you’ll need to invest in is tools such as SDS drills for your home renovation project. To assist you with your DIY, you may find it useful to watch a YouTube tutorial or read a blog post on how to do the job right. Or, if all else fails, ask your friends.

Use inexpensive materials where possible

Inexpensive doesn’t necessarily have to mean bad. Stick to composite or engineered wood, which is cheaper and stronger than traditional wood. You might also be able to save money on build costs if you go for upcycled or second-hand materials.

Stick to a set budget

Once you’ve set out your budget, while it might prove tempting to go over just a little bit if there’s something you really want, never waver. Sticking to a budget can actually make you more inventive and if there is any money left over you could always use it to pay for a nice holiday. Because you’ll probably need one once all those renovations are finally done with.