Whether you are saving to startup on your own, you’ve already got a business that you are keen to expand, or you are considering buying a business or investing in a company, you’ll need money. While it would be lovely to think that all businesses could start with nothing and quickly start to pull in the profits, it’s often not feasible. Even if your business does have very low startup costs, if you are giving up a full-time job to go it alone, you need cash to replace your salary, and it might be awhile before you can take the same salary from your own business.
That’s why it’s so important that you put your personal savings to work. Having a bit of money behind you is great. But, if it’s just sat in your bank account, it will never grow. Here are some of the ways that you can put your money to work, as you sit back and watch it grow.
Find the Right Savings Account
Traditional current accounts are great. They give you easy access to your money while keeping it safe. They are the ideal place to pay money in, and the best place to have bills go out of. But, the interest rates on most of these kinds of simple accounts is pitiful. You might be getting a percent or two. Your money is just sat there doing nothing.
Keep your current account open for your day to day banking, but look around for the savings accounts with the highest interest rates for the rest. Just remember, the highest rates today, won’t always be the best. Don’t stick with a bank out of loyalty. Move your money to a higher interest account whenever the opportunity arises to ensure that you are getting the most of out it.
Even relatively small investments can be a great way to grow your money quickly. You might think that you need to be an expert in stocks, shares, and markets to be a successful investor, but this isn’t true. Read this Etrade review for some ideas of the help that you could be getting with your investments.
Clear Your Debts
So many of us are guilty of saving while we’ve got debt. We’ll have money on a credit card or in an overdraft that we are paying fees for, as well as 20% interest, and yet we’ll be squirrelling away savings in a 5% interest account. Your savings aren’t making you as much as your debt is costing you. You are wasting your time and your money. Focus on completely clearing all of your debts first, even if that means that your savings pot is empty. It might seem counterproductive at first, but ultimately it will mean that your money is free to work harder.
Automate Your Savings
Not all of us are good at saving. In fact, many of us continue to save with enthusiasm for an extended period. We can save for something specific, but we can’t just save. Automating your savings, either using a savings app or simply setting up a direct debit, means that you never need to think about it.