When you save, the first feeling that goes through your head is that of peace of mind, knowing that, if something happens, you have a cushion to be able to deal with unforeseen expenses. But when that savings is significant, keeping it in the bank may not be the best option. Do you want to know how to invest the savings?
Next we are going to give some keys that can come in handy to invest the savings. Perhaps not all of them, but at least part of them so that they give you more benefits than being stuck in the bank account. Go for it?
Ideas for investing savings
First of all, you should know that it is not convenient to invest all the savings you have. In other words, if you have managed to save 20000 euros, it is not advisable to spend them all on investments because you never know what you may need at any given time and there are some practices in which you cannot recover the money so easily.
Therefore, experts recommend that, when investing, whatever it is, do not do it with 100% of the savings but with a part that can be between 40 and 60-70%. The rest must remain fixed as a cushion since, if savings continue to increase, you will be able to allocate more money to those investments.
In other words, it is better to start small than suddenly and then need it.
Having said all this, the best ideas we have come up with to invest the savings are:
Buy a house
And who says a house says a local, office, etc. Why this? We are not telling you that you are going to have a second home, or that you become self-employed and set up a business. But prepare it to rent it.
Thus, You will recover the investment money through rentals. We give you an example. Imagine that you buy a house for 100000 euros. It is possible that you do not have that money saved, so you mortgage it, and every month you have to pay a mortgage of 300 euros. But you rent the house to a person who pays you 800 euros a month. With that money you pay the mortgage and you have 500 more euros clean, which makes you amortize the cost of having bought the house.
It is something that many do and that can be a way to earn money passively, because you simply rent something that is yours. Of course, you have to be careful to whom you rent to avoid damage, theft and others.
interest-bearing accounts
In almost all banks there is a type of account that is said to be remunerated in which, by leaving the money in that account (being able to withdraw or deposit without any problem) profitability is generated without the need to take risks.
It is true that this profitability is much lower than with other banking options, but it is also safer and best of all, you can have your capital whenever you need it without penalties.
Bank deposits
Another option related to banks is bank deposits. This is much better known and refers to allocate money to an account that cannot be touched until time passes. In exchange, when that date arrives, you can obtain the money plus the interest that has been generated in that time, although there is also the option of paying that interest (although the most appropriate thing would be for those interests to be invested in order to earn more at the final).
Now, both this form of investment and the previous one they are linked to interest rates and if these are very low it is not worth allocating the savings to these two ideas.
Pension schemes
Here it depends on the conditions that your bank gives you. If it is simply saving the money for your retirement, without it moving and standing still, it won't be worth it because by having it in the bank you already have it reserved for that purpose (unless you don't know how to save and you spend it all, but if you have come to have those savings we doubt it).
However It may be that these pension plans do have profitability, that is, that after the years they return that money to you with interest. Depending on how much it is, you can see it as a long-term and quite attractive investment, especially if you are self-employed or do not think you can reach the minimum to obtain a contributory pension.
invest in business
That is, become a Business Angel. These are figures in which they put part of capital and knowledge in companies in exchange for part of their profits.
As that figure may be too much outlay, you can opt for crowdfunding, which are cheaper.
create a business
If you are good at something, and you think it may have a future, why not create a family business for it? That savings you have can be used to start a business, whether physical or online, and move it forward more easily than if you started with nothing.
Of course, you have to have a head because, although the first year you may not obtain benefits, from the second they should, at least to cover the investment you have made.
Investment funds
It is another of the ways of investing savings, well known and used. As an advantage you have to are exempt from taxes, but for this you have to reinvest it or transfer it to another fund, that is, the benefits you get you cannot enjoy. Only when you liquidate the shares will you have to pay taxes on them.
Forex market
Another option is through this though We only recommend it if you have enough training and experience to operate because it has a high volatility. That is, you can either win a lot, or lose all your savings.
Invest your savings in art
Many people are collectors and what they buy has a value that, in the future, is likely to go up. In other words, if you spend 1000 euros, it is possible that in 20-30 years that object could be worth 4000 euros or more (or also much less than what you paid).
But it is a form of tangible investment and one that you can enjoy yourself for a while before selling it. Yes indeed, You have to make sure that it is in the best conditions to get more money for it.
The truth is that there are many ways to invest your savings, everything will depend on what you want to do with them and if it pays you more to have them as "disguised savings" or used to make a profit in the short, medium and long term.