Investing your money essentially means that you’re making the most of it – you’re putting your cash into a project or a long-term benefit which will reap rewards for you later on in life.
Investments may come in the form of mortgages, cars, stocks and shares, equity in small businesses – if you’re keen to try and invest your cash wisely, it’s important to try and do so while you’re young – so that you can stand to reap the rewards for as long as possible!
Finding your way around investment opportunities and choices available, however, can be a bit of a minefield.
Regardless of your age – what’s the best route to take when investing for the first time?
What are some of the most effective ways for you to invest your money while you’re young – so that you can really feel the benefits in a few years’ time?
Here are three of the biggest and best ideas for you to try – starting today.
This is perhaps the most obvious investment opportunity around for UK residents, but it’s still one of the most important – while you’ll already be paying a certain amount of money into your state pension via National Insurance contributions through your regular income, you will also have access to a private pension through your workplace.
Recent rulings have ruled that money you choose to put into your workplace pension from your regular wage will now be matched by your employer – so, effectively, you’ll be encouraged to invest money in your retirement fund with the promise of an extra 100% on top. That’s not a bad deal at all.
You can also take out private pensions with banks and insurance companies – if you are concerned about having enough money available for when you come to retire, investing in a pension is still a very wise move – the state pension will exist for anyone who has paid in various contributions – but you have complete control over the money you put into a private or personal scheme, and you won’t be able to access it until you retire.
Starting young means getting ahead of the game and investing more money long-term, too.
The Right Savings Accounts
Savings accounts, ISAs and more besides, are great investments to buy into while young. Thanks to interest that can be applied on savings in the case of ISAs, you’ll get a fair bit back from the bank in extra money for the cash you pay in each year. However, it’s important to remember that many ISAs will offer you a fantastic first-year deal on interest, only to drop this to a lower rate for the year after (starting April, the new tax year).
Therefore, if you are into investing in savings accounts or ISAs, it’s essential you consider moving your money from one bank to another on a yearly basis to make as much money as possible.
It’s easier than ever to switch accounts and to pay into them on a regular basis – and this is absolutely the best way you’re going to be able to support yourself in the long run if you’re concerned about avoiding loans and credit card debt.
Help with finance in terms of ISAs and likewise investment for young people is always available when needed, too.
It takes considerable time for people to get seriously adept at making money from investment in stocks and shares, but it’s safe to say that, in the long run, you’ll save more for your money here than through savings bank accounts.
The main factor to remember with investing in company shares is that there is always a risk involved – the more you want out of an investment, largely, the more you are going to need to put in.
- Also Read – How to Predict a Bubble and Steps to Avoid it
Investing in shares while young, if you are interested, is a great idea – you can slowly build up a portfolio and can learn more about how the stock market grows over the years if you are particularly invested – and this way, you may well be able to build up a strategy that pays off on a regular basis.
Knowing which markets to buy into and which brands to buy shares in is all part of the game – investing in stocks and shares takes time, effort and passion – and if you’re willing to put all of that in, you’ll reap dividends – but it’s worth doing while you’re young if you’re going to make it a long-term earner.