Saving Money For The Future
Saving money for the future is a step we all should be taking. After all, no one wishes to spend his or her entire life working. If you hope to have stability for the future and to one day quit your job, you need to start saving money for the future today.
In the UK, there are a number of different options available to you for saving money or using your money to make more money. These basic options include:
- Savings Accounts
For all practical purposes, savings accounts are different from the other methods of saving money for the future because the main purpose of a savings account is to reduce the amount of money you spend. The other methods of “saving,” on the other hand, involve making more money for the future. With the right savings account, however, you can make more money for the future as well, though you won’t receive as much money back with a savings account as you would with the other methods of saving for the future.
If you hope to actually make some money for yourself, you will have to look into the other methods of saving for the future. The other three methods mentioned do come with a certain amount of risk that is not found with savings accounts. In addition, it will not be as easy for you to access the money should the need arise.
Bonds are a safe way to save for the future while earning a greater return. Many people in the UK enjoy investing in premium bonds. While you won’t earn interest from the money you invest in one of these bonds, you can win up to £1 million in the monthly drawing you will automatically be entered into. The more bonds you have, the more chances you have of winning. Even better, the prize money won is tax free.
Another bond option is corporate bonds. The money you earn back with these bonds is tied directly to interest rates and there is a small risk involved with this investment. There are tax benefits associated with corporate bonds that will make you exempt from general interest and capital gains tax.
Annuities come in a number of forms. For most people, an annuity is purchased along ith a pension or with others savings. With the help of an annuity, you can make sure that you receive a certain income during your retirement each year once you reach a certain age. It is best to talk with a financial advisor in order to determine which type of annuity is best for you and your situation.
Unit trusts can also be used to help you save money for the future. This type of investment is considered to be the safest and easiest way to get involved with the stock market. If you are new to investing, setting up a unit trust is a good way to get started. Or, even if you are already making investments, a unit trust can help you to expand your portfolio and increase your chances of making money for your future.