Saving money is important, that’s obvious but smart savers start by building sufficient emergency savings within a savings account (ideally a high interest savings account) with a bank or likeminded institution. But after building three to six months of easy-to-access savings, investing in other cash building strategies, offers many potential advantages.
Investing can be an effective way to put your money to work and build wealth. Smart investing may allow your money to outpace inflation and increase in value, as general bank rates are running below inflation and therefore decreasing! The greater growth potential of investing is primarily due to the power of compounding and the risk-return trade off.
Real growth occurs when an investment generates returns which are then reinvested/rolled over. These earnings then generate their own earnings. So, in other words, compounding your investment returns.
It’s not surprising that the world of investing can seem complex. Investors today face often-changing market conditions. An endless supply of market news. And many, many investment choices. So, what guidelines can investors follow to achieve better results over time?
The principles of successful investing are quite simple; invest in a product that matches your attitude to risk, that gives higher returns than you currently enjoy and also offers benefits to match your life demands.
When markets turn choppy, even experienced investors can become too focused on short-term movements. This can lead to hasty decisions, especially trying to time the markets. For example, investors see markets rise and jump in – buying high. Or, they see markets fall, lose confidence and sell at a loss. The key to avoid making rushed investment decisions is to maintain perspective and focus on the term of the product that suits you.
The good news is, that finding the best savings rates doesn’t need to be complicated. Even for risk averse savers, it is possible to make strategic investments, such as THG Gold Bonds which are viewed as one of the best fixed rate bonds available, offering savers a fixed interest returns of 9% per annum. This fixed high return rate is made possible by using a system of gold streaming to iron out any market fluctuations and mitigate risk.
With a well-structured plan in place and access to the best fixed rate bonds, you can confidently stay committed to future proofing your finances. And you’ll have the peace of mind of knowing that day-to-day market fluctuations are likely to have little impact on your longer-term objectives, or on the investment strategy designed to get you there.
If you would like to discuss the best expat savings accounts, get in touch with mybestbuysavings, one of the world’s leading brokers specialising in risk mitigated expat savings accounts. The company’s award-winning team has been helping expatriate and nationals located all over the world (except continental USA) to find the top savings rates for over 20 years.
Call + 44 (0) 1243 767 664, email info@mybestbuysaving.com or fill in a contact form on the website www.mybestbuysavings.com, and an agent will answer any questions you may have and guide you through your options.
