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Saving and Investment Options for Families

Saving and Investment Options for Families

This is a collaborative post.

Saving and investing wisely can make a huge difference to how comfortable family life is. Fortunately, there are quite a few ways to do this. So, finding one that works for you should not be too difficult. Particularly, if you seek advice from an independent financial advisor before you do anything.

Here are a few investment and saving vehicles a lot of families use. One of them is likely to work well for you.

Individual Savings Accounts (ISAs)

ISAs have been available to UK residents since 1999. Potentially every member of the family can have one. Your options include junior ISAs, stocks & shares ISA, cash ISAs, lifetime ISAs, Innovative Finance ISAs and Help to Buys ISAs.

The amount you are allowed to invest each year using these depends on your age. Plus, each year, the limits are reviewed and, often, increased.

Investing in gold

Buying precious metals is not without its risks. Values can, and do, go down as well as up. But, with the right approach, people do make money from investing in gold and other precious metals.

Invest in start-ups

In the past, investing in start-ups was the reserve of banks, hedge funds and large organisations with vast sums. Today, virtually anyone can get involved.  There are now quite a few investment firms and funds that accept relatively small sums of money from individuals. They then lend it to start-ups who need cash.

If things go well the start-up will go public and you will get your money back with a handsome profit. On the other hand, if things do not go well you could lose your capital. So, this form of investing is not a good idea for everyone.

Reduce your household expenses

Before I go I am going to mention two ways of saving that a lot of people forget about. The first is keeping your daily expenses under control. Watching what you spend and taking advantage of discounts frees up cash that you can then put away for your future.

There are all kinds of apps to help you to do this. Some help you to avoid over-spending. Others offer you coupons and discounts, they are all helpful. So, is regularly shopping around for things like insurance, phone contracts, electricity and gas.

Invest in your home

Lastly, don’t forget to invest in your home. If spending £15,000 converting your loft will add £20,000 to the value of your house, why not do it? You will enjoy having the extra space and be able to cash in when you finally sell.

The above are just a few suggestions. There are dozens of others. If you are not sure what one to choose, just get a big jar and start putting your change into it or sell some of your stuff.

Then take that cash and open a savings account. You can do that every month until you put something more permanent in place. Once you have done that, you can move the money you have already saved up into that investment vehicle. Taking this approach will ensure you actually get started rather than continually putting off saving and investing for your family’s future.

Disclosure – this is a collaborative post.