money myths

Amanda's note: this was provided by an online contact. 

Unless you choose to hide money beneath the mattress, you likely deposit your hard-earned funds directly into a bank account on a regular basis.

While the money is safe, the one fact which the average bank tends to gloss over involves how much you will earn by using their services.

At the time that this article was written, the top interest rates associated with high-yield accounts was capped at approximately three per cent.

This does not include commissions, withdrawal fees and similar surcharges.

If you are hoping to have your money work for you as opposed to the other way around, the alternative options mentioned below will be of great interest.

Precious Metals

Unlike many other financial investments, precious metals are known as “tangible assets”.

This essentially signifies that they are always associated with an intrinsic value (2). It therefore makes perfect sense that traders flock to this sector when uncertainty hits the markets.

Precious metals are known to produce steady returns over time. In the event of a global market crash or a profound re-correction, their value will exponentially increase as investors adopt a more risk-averse stance. If you tend to embrace a conservative mindset, precious metals are excellent options.

Examine Contracts for Difference

There are several logical reasons to become involved in CFD trades.

These tend to represent short- to medium-term ventures, so they can provide you with a heightened sense of liquidity.

Furthermore, it is possible to employ leverages. By taking advantage of the leverage available in online CFD trading, small sums of saved up money can be turned into reasonably sized profits.

In other words, you can experience substantial returns without being forced to invest a great deal of money. This can be an ideal solution if you are on a limited budget.

Blue-Chip Holdings at a Glance

Blue-chip shares have always been popular choices for those who are looking to add a bit of meat to the bones of their skeletal savings.

One motivating factor involves the relative stability attributable to major firms such as Apple, Microsoft and Facebook.

Let us also mention that you are likely to be supplied with quarterly dividends. These will provide you with an extra sense of liquidity; very important if your money remains invested for an extended period of time.

Short-Term Ventures for Long-Term Wealth

Although the suggestions mentioned above tended to embrace a more conservative stance, there is nothing wrong with utilising the flexibility of more liquid positions.

Forex (currency) trades are a shining example of this strategy.

You can choose the size of the allocation as well as the associated expiry time. Thus, it is always possible to remain firmly nestled within your “comfort zone” while still obtaining appreciable profits.

Although it is perfectly safe to keep your money in a bank or building society, safety does not always equate to high profit margins. Please consider all of these strategies if you are looking to multiple your savings.

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Amanda L. Grossman is a Certified Financial Education Instructor, Plutus Foundation Grant Recipient, and founder of Frugal Confessions. Over the last 10 years, her money work helping people with how to save money and how to manage money has been featured in Kiplinger, Washington Post, U.S. News & World Report, Business Insider, LifeHacker, Woman's World, Woman's Day, ABC 13 Houston, Keybank, and more. Read more here.
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