Thursday, January 20, 2011

Keep it For a Rainy Day - Five Money Saving Tips

Voicing opinions about the current state of the economy became something of a common sight. With many 'experts' advising you to put your money under the mattress rather than tucking them into a saving account, you may have your concerns, but don't be fooled! There are still solid products on the market to help you put that extra income aside when you need it most.

Before you even consider applying for one of the money saving products, perhaps you should take a closer look at the state of your current affairs. Start with the monthly regular outgoings such as utility bills or phone tariffs.

Are you really getting value for money there? Switching your gas and electricity provider to a cheaper supplier can save a decent amount over a year which, in turn, can nicely bulk up your personal savings. So, shop around to get that best deal to suit your purse.

Insurance cover, whether it's car insurance, building and content insurance or life insurance, can also inflate your monthly spending. When looking to buy a new insurance always ensure your policy covers you in the event of something likely happening to you. There is little point in paying for a protection you won't need. In addition, when changing your insurance provider you need to compare like with like and not the price alone. Always look for the same cover and definitions before you make up your mind.

If you are fortunate enough to stand on the property ladder you can try and make some savings on your mortgage. Now, unless your mortgage product is about to terminate, you can't just simply switch to a new provider with a better deal, as the early repayment fees and other charges will usually outweigh any possible gains. What you can do instead is to overpay your current mortgage and save many thousands in interest by reducing the term of your mortgage at the same time. Many products currently on the market allow you to do so without incurring any penalty fees.

Once you've managed to generate some surplus you should definitely consider one of the best saving products available, that is ISA. What is there to get excited about? ISA is a government backed saving account with a competitive interest rate applied.

The cherry on top is that it is also tax free. However, you can only save up to a certain amount in any given tax year. ISAs are very effective products that can quickly boost your savings.

For those who feel a little bit more adventurous, fixed term bonds may seem as a tempting offer. They provide a rate that is fixed throughout the duration of the bond, giving you a predictable income with no surprises.

Keep in mind that very high deposits are imposed and the generated income isn't tax-free. Fixed Term Bonds generally offer the highest saving rates available.

Start saving now and you will see that a penny saved is a penny earned or more.

By: Daniel Collins
Daniel Collins writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.

Monday, January 10, 2011

Short Term Investment Strategies You Should Know About

Many people are in search of short term investment strategies to help grow their money a shield it against inflation. There are several options to choose from when it comes to this type of investment.

Some formulas are lower risk than others largely the goal with any type of investment whether it is the long or short term is to protect the capital and receive the largest gains with the least amount of risks.

It is just a simple truth to finance, making money requires risk, the more risk the more potential. Of course risk should always be peppered with a bit of common sense. If this is something you are setting to do on your own, than you should absolutely consider gathering as much information as possible. Review as many strategies as possible to get a broader view of the possibilities. Knowledge is certainly power especially when it comes to investment.

Investment Vehicles

There are some investment vehicles that are much safer than others when it comes to the short term. A lot of shorter term investment strategies revolve around bonds or other treasury notes. Short term bonds combined with other investment vehicles will give you opportunities to collect higher yields within a low risk environment.

Investing in government debt is a favored investment strategy because the risk is so low. In almost every instance of this kind of investment the returns will be decent and the risk is very close to zero. Now with this strategy it is important to understand that the yields are not going to be through the roof but they will be decent and your principal will be well protected.

Other investment strategies include diversifying in equities of course this will come with much greater risks. The capital investment will be at risk with any stocks, indexes or other equity vehicles. Of course with greater risks there will come higher yields. Some folks are much more ready to lose their principal if it means they may be on the winning side of things and gain higher yields.

By Mary L. Thompson
Go here to learn more about short term investments such as a fixed rate bond.