Personal Finance – 3 Ways to Invest Your Savings

A couple of years ago, I started questioning what I was saving my money for, I am not a frivolous spender nor a reckless gambler when it comes to finances but I decided to look into ways in which I could use my savings to grow my wealth. I’ve since used the money that I have saved, or at least some of it, to take advantage of various financial opportunities that I wanted to share, so if you have saved up some money through the years then here are some tips on how to put it to work.

Stocks and Shares

A slightly different way to invest your cash when it comes to the stock market is to trade the stocks themselves as opposed to betting on their rise or fall. Naturally when it comes to owning stocks, you will only want the price to grow and the real trick is knowing when to sell them. Stocks are a slightly more secure way of investing your cash than spread betting as should the price go down, you can simply keep hold of your shares in the hope that they will once again rise. Many stocks offer dividends which can give you a small payout each year and act as something of a loss insulator should prices drop. From a tax point of view, you will pay capital gains of between 25-39% on any stocks sold in their first year and around 15% after the year is out. Like spread betting, you can start trading with as little as $100.

Spread Betting

Spread betting, in a nutshell, is about gambling on the future price of various markets such as currency, oil, commodities and stocks and shares. One of the biggest bonuses of this type of investment is that spread betting is considered by the government as a form of gambling and as such you will not pay taxes on your profits, an appealing option and one that can prove to be very fruitful. You will naturally need to have a firm grasp of the markets to which you will be betting on and be able have good analytical skills in order to see which way the market is heading. You can start out with just a few hundred dollars and you can bet on prices for the day or even a longer period of time. Spread betting is exciting and can be a great way to grow your wealth.


There are more businesses being created than ever before and if you have an eye for what will become successful then you could stand to make a healthy profit by investing in these businesses during their early years. Start-ups rely heavily on private investment and if there is a new business entering into an industry that you are already familiar with then you could be best placed to invest your money in their new idea. Ensure that you negotiate a good contract for your investment as there are a lot of risks with new businesses, 54% fail within their first 3 years and the last thing you want is for your investment to turn sour.

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