How to Make the Most of Your Savings This Year

Your savings are your most precious financial resources. You’re putting away cash every month for an important reason, be that to save up for a mortgage, to put your children through college, or to save for your retirement plans. This article looks at how you can best handle this crucial element of your financial health, using all of the advice on offer in order to ensure that the money you see isn’t just safe but earns you extra cash. Read on to pick up three crucial tips for managing your savings. 

Using Advice

There are many reasons why people turn to financial advisors. Some are looking to broaden their investment portfolio, while others are looking for tax advice. In your case, you’ll be looking for advice on how to handle savings, and this advice can be fundamental to your strategy moving forward. Yet some financial advisors might take a chunk of your earnings as a commission for their services, which sometimes deters people who are just looking for one-off advice. 

That’s where fee-only advisors come in. For instance, a fee only financial planner in Stuart, FL, will take a one-off fee for offering their savings advice, which will leave you in good stead for your savings planning going forward. Don’t worry about ongoing costs: just get this one-off advice to help you boost your savings in the coming year. Of course, this type of financial advisor doesn’t just exist in the Sunshine State; they exist across the entire states, as well as in most countries around the world – so you can always find one when you need one.

Risk Profile

Some investors and savers are risk averse, while others are happy to take some risks so as to give them a chance to make more money in the markets. It’s well worth deciding what kind of risk profile you have, and you can do this using online guides that will detail the types of risks and rewards available to you should you be interested in putting your savings to work as investments. 

One of the key elements to any investment plan is when you expect to withdraw your cash, making it liquid again in order to spend on your mortgage or your child’s tuition fees, for example. If you’re happy to let your savings pool for over a decade, you can afford to be riskier with your investments. If you might wish to withdraw them in two to three years, a steady bet will be preferable. 

Savings Accounts

It might well be that, after your research and advice, you find that you’d prefer to make use of simple savings accounts. Some of these accounts provide you with high levels of interest for locked-in periods of time, for instance, one-year or three-year savings pots. In these specified timeframes, you’ll not be able to withdraw the cash. 

Other savings accounts put your money to work in investments, usually in broad portfolios that are designed to steadily increase your return without putting your cash at risk. This can be a savvy way to play the markets without having a great deal of knowledge of them yourself. Use this strategy to make your savings grow while you concentrate on your career.

Use these tips to make your savings as secure as possible while also ensuring they’re earning you extra cash in the background.