What to do with your saved money?
Is that question bothering you right now?
Are you having a hard time making a decision on what to do with your saved money?
If you are, then that’s okay, you can stop wondering now, because I may have the solution to your problem. You may already know that you can do a lot of things with your money — you can use it purchase something you want, hide it, or even make more money using your saved money. But before I tell you what you should do with your saved money.
Here’s my confession, I cannot really tell you what’s the best thing you can do with your money. Why?
It’s all because you should be the one telling yourself what to do with your saved money. Yes. Only you. It’s your money, so it’s your decision. You know what’s best for you, and I don’t know that.
What I can do for you is help you make the right decision.
For that to happen, let’s weigh your options first. Listed below are five different things you can do with your saved money today.
Things You Can Do With Your Saved Money
Option 1: Leave it inside your piggy bank
As a kid, you were taught to save your money using your very own piggy bank, weren’t you?
Knowing that you were able to save money, even though it’s just a small amount, felt great, right?
But as you grew older, things have changed, your allowance or income has increased, you begin to hang out with other people, and you’re spending more and more each day. There are now times that you take some of your money from your piggy bank. And what does that mean?
It means your piggy bank is no longer a good place to put your saved money. You need to find another place to put your money, some place safe from thieves, and also safe from your spending habits as well.
Another not-so-good thing about storing your saved money in piggy banks is that no matter how much money you are saving, it will still decrease because of inflation.
That simply means your $100 today isn’t going to have $100 value after a year. Your $100 may only be able to buy a $95 or $96 item after a year. And that’s all because inflation.
Verdict: Not a good option for teenagers, young adults and older human beings
Option 2: Put your saved money in a savings account
Oh. The savings bank. Can you still remember the first time your mom/dad brought you to the bank to get your own savings account?
The time when you don’t have any idea what those lovely ladies in the bank were doing. Are they just there to count money? Talk on the phone? And why is it very silent inside a bank?
For me, being in a bank is like being trapped in a very boring place. Unless they let me inside the bank vault and let me take some of their money, I don’t think I will ever have a good time there. Just kidding.
Enough of that, let’s go back to our main topic. Is the bank a good place to put your saved money?
Well, yes of course. Your money is safer there than in your piggy bank.
I said it’s safe, so should you leave it there?
Leaving your money in the bank is like giving the bank owners the control over your money. They’ll be the ones who will be benefiting from your hard work once you hand them your money and let them take care of it for a long time, and in return, you’ll only be given a very small reward while they use your money to grow their assets.
The only reason why I have some of my money with the bank is to have a place for my emergency fund. My emergency fund is not that huge, and it’s only for emergency purposes, so I decided to put it there because it’s safe, and I can get it easily whenever I’m going to need it.
Verdict: Good option for those looking somewhere safe to put their money, not for those looking for good returns
Option 3: Invest your saved money
Have you ever tried investing before?
I have, and I can tell that it’s one of the best things that I have ever done with my saved money. Why?
It’s because my money is working for me. Yes. My money is working, and after several years, I’m expecting that it worked well, and get me good returns.
Unlike putting your money in a savings account, investing can give you good returns, and if you’re lucky enough you can get as much as 100% return or even more on your investments at some point in time.
Unfortunately, not everyone can accomplish that feat, some may settle for just a 8% – 12% return annually but that’s still much better what most savings account can offer you nowadays, right?
The not-so-good thing about investing that you can lose all your saved money if you make the wrong decisions. And the 8%-12% returns is just an assumption that the market is performing well. What if it’s not?
Well, getting no returns at all is a normal scenario when the market is down. So, what’s the good thing about investing?
Nothing, if you invest briefly.
Everything, if you invest for the long term. History shows that investing for the long term is always the best because over the years, the market always find its way to recover back.
Verdict: Learn how to invest, and do it ASAP
Services you can use to start investing NOW!
Option 4: Donate your saved money
Sometimes the best thing you could do with your saved money is to give it to someone else that needs it more than you do. Some of us may be fortunate enough to be blessed with a lot of money in their name, some are not, and some of those who are less fortunate need the money the most, so why not give it to them?
It’s better to receive than to receive, isn’t it?
Verdict: A pretty nice thing for you to do if you really want to do it
Option 5: Start your own business using your saved money
Another good thing you can do with your saved money is start your own business using it.
If you think you can handle the hardships of being a business owner, then get yourself ready and at least give it a shot. If it works, then that’s great for you.
Some businesses need a lot of capital before they launch, and that’s when having a good credit score and a good amount of saved money comes into the equation.
You should keep in mind that like investing, you could also lose money starting your own business. The good thing about this is you can even expect better returns than investing your money on someone else’s business, and you can be your own boss.
You should also know this one before you start your own business:
According to StatisticBrain.com, 25% of all start up businesses fail in their first year of existence, while 36% fail in their second year, and 44% fail during their third year in business. The highest rate of failure was experienced by business on their 10th year, so one should always keep in mind that a business could fail any time even if it’s been operating for years already. (Source)
Now, are you still willing to give it a shot?
Verdict: Only for those who have the money to start their own business, and have the traits that successful business owners possess themselves
For me, the best thing you can do with your money is either you invest it or use it to start your very own business. Oh. Wait. You can also donate it or give it to others who need it more than you do if you want to.
What about you?
What do you think is the best thing you can do with your money based on those five options provided above?
Do you have any other option in mind?
Do you want to save more money? Read these articles now!
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