Few things make money like money itself. If you came into money today, would you know what to do with it? Would you go out and spend it all or put a fraction of it into an investment so you could watch it grow? Perhaps you’ve managed to save after working hard all your life, your money is sitting in an account but not gathering as much interest as you would like and are now keen to identify ways to make it go further. Let’s take a look at some of the most common methods used to make money multiply.
Do you have long or short-term goals?
It’s widely accepted that investing in things like land and property and much more effective ways to make your money grow than simply putting it into a savings account. Leaving your money in such an account is not as lucrative as it once was thanks to low interest rates and rising inflation. There are many alternatives to savings accounts that can help you achieve your goals – although it is worth remembering that some of these can lead to big losses as well as sizeable gains. However, the bigger the risk, the better the potential return can be if luck is on your side. Before you consider investing your money, you should accept the potential for loss.
Putting money into property
Property can help you make a serious amount of money, especially in today’s climate, which involve a significant shortage of houses. This shortage has led to house prices shooting up – although there is always a big chance they could plummet. It’s wise to decide what you want your money to do and how realistic your aims are. Do you want an income you can start to live on quickly or are you thinking about your future circumstances? Do you have a specific time frame in mind? It’s generally accepted that investment is best for long-terms goals as it can take several years for investments to pay off. Many people only start reaping the rewards of investment in property, land and businesses after five-to-ten years, so if you do want to start feeling the benefits of investment, an ISA could be a more appropriate option.
Patience is the key
If you’re consider investing in land, property or business, you should be prepared to be patient. You may need to spend years putting money into your investment before you start to get anything out of it. For instance, if you’re buying a property, you may need to put a great deal of money into renovating it so you can ask for a much bigger price than you paid for it initially. You shouldn’t use money you need to live on to invest. Only use cash that you can actually afford to spend and seek advice from financial experts before you make any significant decision. A reputable, trustworthy financial advisor will be able to give you a strong idea of what to invest in and what to avoid, as they’ll be able to use their expertise and experience to predict future market activity.
Add value to your home
If you’re thinking about investing in property, do be aware that it can take a great deal of time to sell a home even after you’ve managed to raise its value significantly. There are buying and selling costs to consider, and you may have to fork out for numerous legal bills, stamp duty and land tax. You may also need to extend the lease if you do want to make improvements to it. If you’re buying to let, you’ll need to make sure the rent covers the mortgage repayments. Nonetheless, there’s a great deal of money to be made from property if you approach the market with care and get the right legal advice.
Invest in business
Investing in someone else’s business can also be an extremely effective way of making money. Before you put your money into a business, you should make sure it is a good match for your requirements. Make sure you see a business plan to find out whether the set-up is feasible and likely to make money. Experts typically say it’s best to invest if the business is already successful – although you may need to pay more for a slice of the pie if that’s the case. Will you have any real say in how the business is run once you have put your cash into it? What will happen to your money if the business fortunes start to plummet? Only invest money that you can afford to lose, whether you’re interested in making money via property, land or a business.
Get the advice you need
You have a better chance of making your investment a success if you have quality support and guidance behind you. Great financial advice can be the difference between watching your money grow and losing it completely. There are many investment and wealth management companies that can direct you towards the best opportunities for growing your cash. Quality financial advisers can help you turn your money into so much more.
This guest blog is on behalf of Raymond James Kent Wealth and Investment services. Raymond James provides expert knowledge and advice in all areas of finance from wealth management to tax planning and pensions. For more information visit the website.