There’s no doubt that the UK is gripped by a cost of living crisis, as energy bills continue to soar and a proposed inflation rate of 4% moves into view.
With the base rate of interest still capped at an historic low of 0.01% in the UK, households can also no longer rely on traditional savings accounts to generate any kind of return on their hard-earned cash.
So, you’ll need to identify other and more creative ways of boosting wealth and making your income work for you. Here are some ideas to keep in mind:
Why Make Your Money Work for You?
There’s an old adage which suggests that “you need to speculate to accumulate”, and this has never been truer given the conditions outlined above.
Make no mistake; utilising your savings and disposable incomes into generative channels can be highly rewarding, creating additional streams of income in the short and longer-term.
This also minimises the risk of cash being wasted and frittered away, which can happen all too easily as prices continue to soar.
How to Make Your Money Work for You
So, the question that remains is what practical steps can you take to make your capital work for you? Let’s find out!
#1. Invest and Trade
If you do choose to eschew low-interest savings accounts, you could replace these with various investment vehicles.
Of course, some of these are more volatile than others, so you’ll need to identify the options that best suit your existing capital holdings, risk outlook and expectations with regards to profitability.
Stock indexes and commodities such as gold provide particularly stable investment options in the modern age, while these can be accessed seamlessly simply by using the MetaTrader 4 download and opening an account.
Of course, you can also use this type of platform to trade derivative products such as forex, while accessing leverage to minimise your initial deposit and pursue optimised returns.
#2. Leverage Bonds
Bonds offer a similar but arguably more generative alternative to savings accounts, particularly when you target fixed-income products.
Certainly, investing in bonds is a stable and low-risk endeavour, and one that can deliver incremental returns over time.
Treasury bonds issued by the government are among the most reliable, although you can also access products that have been issued by private corporations.
#3. Consider Real Estate
If you have a larger amount of money saved or that can be classed as disposable, you may also want to sink this into real estate.
This can deliver a profit through various ways, from the acquisition, refurbishment and subsequent resale of a property (for a tidy profit) to creating a rental home that delivers a monthly yield.
The key is to deploy strict budgets and determine your preferred investment vehicle, while ensuring that you operate profitably and generate returns within a desired time-frame.