What to do with money sitting in the bank? (Make your money work for you)
“What to do with money sitting in the bank account right now?”
This is a question many people start to ask themselves when they start to take their future seriously. Many people think that “cash is king” and that if they have it, then everything will be fine.
The truth is, cash isn’t worth anything unless you can make it grow or protect it.
Cash doesn’t grow on trees- the only thing growing on trees right now are leaves!
How much money do you have sitting in the bank?
If it’s a lot, start thinking about what you can do with this money.
Your short-term goals are not the only thing worth considering.
You also need to start planning for your long-term future! In this blog post, we will discuss ways you can use your excess cash to start investing and planning for the future.
If you want your money to work for you instead of against you, start planning your money today by following these tips for what to do with money sitting in the bank:
Grow your net worth
One of the most important things you can do with your money is to ensure it grows over time. This means saving money and investing in assets that will appreciate in value.
Some great ways to start investing your money include:
– start investing in index funds – the great companies of the world.
– start a business to create additional income
– Consider a rental property
Don’t forget your pension
Your pension is likely to be your greatest source of income in your later life.
Is it looking healthy?
Does it need some life support?
Adding money to your pension could see you get a 20 or 40% boost from the government, depending on your personal tax rate.
Starting or building your pension now will give it the greatest chance of compounding larger and larger in time for your retirement.
Don’t forget to be creative, as a pension is just a sum or source of money to live off when you can’t or don’t want to work anymore.
It could be one or more of one of these things
- Company pension
- Private pension
- Rental property
- Your own business/s online or physical
- State pension (if there is one by the time you get there)
Start investing in the stock market
One of the best things you can do with your extra cash is start investing in the stock market. This will allow your money to grow over time, and it will also help you to plan for your future retirement.
Make sure you are aware of the risks involved before making any investments, but know that many options are available.
If you’re not sure where to start, there are many online resources that can help you get started. You can also speak to a financial advisor if you have more questions or want someone to help guide you on your investment journey.
Remember: the earlier you start investing, the more time your money will have to grow.
Invest in yourself
It is never too early or late to start investing in yourself. If you invest in yourself, it will pay off.
Investing in yourself means you invest your money to grow, develop, or expand your skills. When the future comes around, you have developed new skills and qualifications that will make you more marketable in the workforce.
Investing can be done by taking courses, seminars, or private coaching classes.
The more you grow your skills, experience and qualifications, the more wealth you can create in every area of your life, not just your bank balance.
Think long-term in your planning
One of the smartest things that you can do with your money is to start planning for your future. This doesn’t mean that you have to know exactly what will happen, but rather start thinking about what you want in life and how much money you will need to achieve those goals.
Some questions that you should ask yourself include:
– How much money do I need to retire comfortably?
– What are my long-term career goals, and how can I start planning for them now?
– Do I have any large expenses coming up in the next few years (wedding, house, car etc.)?
By answering these questions, you can start creating a roadmap for your finances and working towards those goals.
Protect yourself from disaster
One of the best things you can do with your money is to protect yourself from potential disasters.
The first thing to have in place is an emergency fund of 3-6 months salary. This is to prevent you from taking on debt if something changes for the worst suddenly.
Other protection measures include setting up insurance policies – these will give you peace of mind, knowing that you and your loved ones are taken care of financially if something unfortunate happens.
There are many different insurance policies available, so it’s important to do your research and find the right ones for you.
Some of the most common insurance policies include life insurance, income protection, and critical illness cover.
These would provide you with financial security if something happened to you – for example if you died unexpectedly or became too ill to work.
Other types of life insurance policies are available for your children, so you can protect them financially if something were to happen to them too.
Life is full of “what ifs” – it might be worth speaking with an insurance specialist who can select the right life insurance policy for you. This will give you peace of mind knowing that your family will be taken care of if something were to happen.
Summary: What to do with money sitting in the bank
You need to start thinking about the future and what you want to achieve when it comes to money and life.
Just because you have a lot of cash in your bank account right now doesn’t mean that this will be the case in the future.
You need to start planning for your long-term future today!
There are many different ways to use your excess cash to start investing and grow your net worth.
One of the best things to invest in will be yourself! Through books, courses and coaching.
The stock market, rental properties and your own business are good places to consider investing your money.
And don’t forget to protect yourself with some form of insurance-you never know when disaster might strike.
We all know that planning your money and time is important, but it can also be painfully hard to fit in with everything else going on in life.
Most people don’t have a good plan for their money and time. They are stuck in the middle of a midlife slump with too much to do and not enough time or energy to get it done.
Here are Financially Happy; we help take the strain out of financial life planning and make sure you can make the most of your money now and later.
Set up a clarity call to start your journey to financial happiness.