Investments are a great way of ensuring financial independence and stability in the future. And even better is, you do not need a lot of money to start! However, despite these incredible benefits of investments, choosing the wrong method may cause you to lose more than you would have gained. So here are some innovative and safe ways of investing.
The cookie jar approach
Although it is advisable to accumulate a significant amount of money before investing, this can be pretty challenging. There may be so many unforeseen events that may have taken more of your money, or you may have some unhealthy spending habits. However, by saving a little bit of your money daily, you can create an investment for a rainy day. This is known as the cookie jar approach. All you need to do is save some money in a jar or piggy bank for an extended period. This is a great investment technique for high schoolers or university students. Then, you can deposit this money into other investment options to increase your yield and provide more security.
Investment apps
Technology has influenced every aspect of our everyday activities in several advantageous ways, and your financial future is one of them. The introduction of investment apps in the financial industry has revolutionised the market, making it more accessible, flexible, and affordable for interested persons to invest. Unlike brokers, these investment apps do not charge you large fees, and they only require as little as £5 to start your investment account. However, before you invest your money with these investment apps, be sure to conduct some research. A quick search of the best UK investment apps should bring up many trusted names for you to choose from.
Payroll deductions
There are so many things you can’t wait to do when that paycheck comes in, and this makes it particularly difficult to put some aside for an investment. To ensure that this doesn’t happen, you can choose to use the payroll deduction method. The payroll deduction method is a simple and effective way of saving money. For example, suppose £100 is deducted from your pay to be kept in a savings account whenever your monthly salary comes in. In that case, you would be able to save up to £1,200! This is an effective way of securing money to make a rewarding return one deduction at a time.
Treasury bills
Treasury bills are a safe way of securing and growing your money. Since these are investment accounts monitored and run by the government, there is minimal risk involved. Simply put, these are government securities that increase over a specified period. There are three tenors: 91-day, 184-day, and 364-day, all of which offer different interest rates. Since these rates are fixed, you do not need to worry about losing money due to an unforeseen economic crisis. You can purchase treasury bills from UK banks and investment institutions across the country.
Mutual funds
The thought of investing in the London Stock Exchange Market can be overwhelming. The wide screens marked in green and red numbers and line graphs can be pretty difficult to understand. If you are too nervous about investing in the stock exchange, you can choose mutual funds. Mutual funds pool in funds from individual investors to buy securities such as shares and bonds. There are four types of mutual funds: equity, bond, balanced, and money market funds. Depending on your type of mutual fund, your mutual fund manager would implement the right investment strategies and manage trading activities on your behalf to ensure you get the most out of your investment.
A high-yield savings account
Banks offer a secured environment to keep your money. And unlike keeping money in your safe at home, you are assured your money is safe from hazards and threats in the bank- since it is insured. However, creating a savings account can also be a great way of investing your money. A high-yield savings account is very different from traditional savings accounts. This saving account allows you to increase your savings as it has a higher interest rate than a conventional savings account. Before you create this savings account, you should compare the various interest rates of different banks to ensure you select one that would maximise your savings.
It is never too late to invest. However, these investment options mentioned above are not the only methods of investing. Therefore, conduct more research to find strategies that work for you to secure your financial future.
