Published On: Fri, Oct 7th, 2016

Where Should You Be Putting Your Spare Cash?

Where Should You Be Putting Your Spare Cash?

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Knowing what to do with your finances is one of those things that everyone struggles with to some degree or another. No matter how much or how little you have, there are always important decisions to make. One of those decisions centers around what to do with any leftover cash at the end of the month. Most people are aware of the potential of investing their money, but few know how to make the most of it. One of the first things you need to try and get to grips with is where exactly to invest any money you might have. This in itself is a huge decision, and should not be taken lightly. To help you out with that choice, let’s take a look at some of the most popular forms of investment.

Corporate Bonds

The first type of investment we will look at is one called corporate bonds. If you are unsure about what corporate bonds are, then let’s take a look. In essence, they are a form of debt issued by companies to raise money. Another way of putting this is that they are IOUs used as an investment option. When you buy a bond, you are essentially lending money to the company issuing it. The issuer agrees to pay you a specific amount of interest per year, which forms a large part of your returns. Also, they will repay the capital at a determined future date, which can be either short or long term. There are many different types of bonds, and if you are interested it is worth doing your research. But one thing is for sure: they can be extremely lucrative and easy forms of investment.

Where Should You Be Putting Your Spare Cash?

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Property

No discussion of investment options would be complete without mentioning property. Most people are aware of how effective an option property can be. It goes without saying that this is a form of investment which requires a large amount of startup money. If you only have a little, it is unlikely that you will get very far. However, if you already have a home of your own, then you are in a good position to get going. Using a pre-set scheme, you can easily get cash for homes fast – as long as you are careful. Your returns with this type of investment are likely to not come for a number of years. However, if you are willing to put the time in, it can pay off handsomely.

Stocks & Shares ISA

There are now a number of tax-free investment options, thanks to the government wanting to encourage more saving. You have probably heard of the Individual Savings Account (ISA), but do you know which are the best to get invested in? Although it is strictly not an investment, it is a great way of securing some extra cash for the future. With a stocks and shares ISA, you can more easily make even more of your invested cash. What’s more, every step of the way it is tax-free, so you are saving money there too. Just about anyone can get started in ISAs, and it can quickly prove to be pretty lucrative.

Where Should You Be Putting Your Spare Cash?


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