Investment 101: Knowing Where to Put Your Hard Earned Money

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Investment 101: Knowing Where to Put Your Hard Earned Money

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Since the recession started a couple of years ago and the inflation that still exists, it has been hard for us to earn money. Money provides us with what we need in our everyday lives and it can also give us more if we keep it in a safe and earning place. Money experts always said that the formula in spending one’s salary should be thirty percent savings and seventy percent spending, not spending first and the excess becomes savings. If you are already applying that thirty percent formula, where should you put all those savings? Here are several options where you can keep your money without spending by asking some portfolio managers.

Purchase company shares. Company shares represent ownership in a company. Your goal will be buying a share at the lowest possible price, then selling it eventually, after some time, when it’s price increase. In buying shares, you need the help of stockbrokers, which is definitely expensive. But, if you have saved that much, this option is risky, but high earning.

Open a savings account. Savings accounts are liquid investments but earns very little. Well being liquid does have a price, but it is better than keeping your money in a place where it will not earn anything. This will be helpful if you have saved only a little amount of money and still planning to save some more since it requires less initial deposit than other investments.

Get a time deposit certificate. Time deposits are not highly liquid than savings deposit since you should keep your money in the account for some time depending on the type of time deposit or what the banks or financial institutes offer. This earns a lot when you keep it until maturity, but if not, you will have to pay the penalty.

Ask several banks’ customer service for products that will fit your needs. There are several products that banks offer that provide more interest than time deposit rates and definitely savings account rates. So, inquire in several banks about these products and compare then choose the best for you.

There is a famous proverb quote which says “The art is not in making money, but in keeping it”. It is how you keep your money, and making it useful for you as well. So besides the given tips, always remember that what you earned is your responsibility. Do not be influenced by what some company might offer. Make sure that everything is legal and existing so that your money will be safe.

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