Being able to make your money work harder for you is essential these days. Whether you live in Perth, Sydney, Melbourne or beyond, it is crucial to think about building up your personal wealth. Doing so will give you money to cover emergencies or to have some treats and will also set you up to enjoy life when retired.
One major mistake some individuals make is to simply park their spare money in a bank savings account. The problem is that low interest rates, when compared to other ways of investing money, mean you do not get the best return. This means that you will struggle to grow your savings to the amount desired.
With that in mind, it is much better to invest your spare money wisely in other areas. But which are the best ones to start with?
Forex is a global market which involves trading in currencies. Easy to access via the internet and with low starting capital needed, it can generate large returns over time if done wisely. It is also an easy to grasp a market which does not need highly technical knowledge or qualifications. Of course, it is important to understand the market before investing any serious money. Another key point is to take your time to select the best Forex broker to trade with. There are lots to choose from and as you will be trusting your personal details and your money with them, you need to be sure you pick a reputable one.
Stocks and shares
Another good investment to consider when growing your investment portfolio is share dealing. This is done via the global stock exchanges – for Australian investors, companies on the Australian Securities Exchange may be tempting to invest in. This is another simple to grasp market in which you buy shares in a company to earn dividends and with the hope of selling them for a profit later on. When done right, it can generate a much better return than the 0.75% national interest rate which is in effect currently within Australia.
Something of a new kid on the block in terms of investing money is cryptocurrency. Popular forms of this digital money include bitcoin which has seen huge gains over recent times but is subject to volatility. Investors can either buy coins to sell on exchanges or invest directly into cryptocurrency with online brokers. The real draw is the massive returns you could make compared to a bank if you time your investment right. The volatility can also be dangerous if the market drops heavily after you invest. For this reason, you must know what you are doing before parting with any money and be prepared to wait some time for the price to bounce back after a fall.
Don’t head straight to the bank
Banks have been such a constant in our lives through history that many people still automatically put their spare money into accounts paying low rates of interest. It is a safe way of keeping some money on deposit but is not the best thing to do to generate more wealth over time. Other forms of investment can be far more lucrative. If you are looking for ways to use your money more wisely the above tips should help.