Saving For The Long Term by Isla Campell

by Isla Campell

However much money you manage to save, it never seems to be enough. And since you will want to make the most of any and all savings you have, it is well worth spending some time thinking about what to do with them. Most people know that the higher the potential reward may be, the riskier that savings vehicle is. But there is nothing wrong with playing it safe, and considering recent events with the economy in particular, it might just be the best strategy of all at the moment. So where do you start? The most important thing is to think about how much cash you have to invest for the future. Are you thinking about saving a set amount of money each and every month? Or are you looking at putting away a lump sum now that you can just forget about? Figuring out how much you can spare and when will help you to choose the right savings vehicle for your needs. It's no good choosing an account with little consideration and then realising you cannot get to your funds in an emergency, should such a scenario arise. It also doesn't pay to be too narrow minded. For example, if you have always relied on traditional savings accounts to put your money in up until now, why not consider other methods of investing your money as well? An investment bond might fit the bill if you are looking for a long term asset that you can keep adding to. They are designed to be held for a number of years, so they are ideal if you want to save for a specific event; this could be anything from a wedding, or perhaps even your retirement. The flexibility you have is one of the reasons this is such a popular choice. A bond is traditionally much safer than investing in something like shares. But the big advantage is that you will generally get a much better return than you would if you left your cash sitting in a standard savings account. As you can see, there is a lot to think about before you make your final choices on where you want to save your money. And you shouldn't restrict yourself to just one account or savings vehicle either. The best bet is to have an instant access account where you can stash some money to get at in a hurry if you need to. Higher paying accounts and bonds can then be added to the mix, in order to give you the best chance of getting the best return over a longer period of time. In short, this is possibly one of the best ways to make a decent return, if you don't like to handle too much risk.

About the Author
Isla Campbell writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.