So you’ve got some extra cash in the bank. Congratulations! Are you going to buy a frontline Carnival costume? A top of the line cell phone? Maybe make a down payment on a new car? We’re not saying you shouldn’t treat yourself. But you should also consider investing. Sure, that may not be fun now but building wealth takes time and we can guarantee you’ll be happier if you have a more secure financial future.
Quick – how much interest do you pay on your credit card? In many cases, the interest rate is well into the double digits. Paying off debt may seem like a boring way to spend $15,000 but it guarantees savings. You’re not just getting rid of debt. The money that you would have spent on interest payments can now be used in more productive ways. You’re also improving your credit score, making it easier for you to get a loan or another credit card in the future.
We know what you’re going to say, you don’t know anything about the stock market! You’ve seen the movies where men in suits look at numbers streaming down a computer screen and decide whether to buy or sell – and that life’s not for you! Thankfully, you can choose to invest in different types of stocks, depending on your appetite for risk. Of course, low-risk investments will earn lower returns than their high-risk counterparts, but you’re also less likely to lose money in the process. And, if you’re still unsure if investing is the right decision, you can always talk to a financial advisor.
Maybe you’re not convinced by #2 and want an even safer way to invest. Why not consider a fixed deposit? A fixed deposit guarantees a fixed rate of interest, which is higher than a savings account, with investors agreeing not to access the funds for a fixed period of time. Fixed deposits also give you flexibility. Saving for a long-term goal like retirement? Then choose a long-term fixed deposit. Maybe you’re saving to go back to university in three years’ time? Then choose a short-term option.
An annuity can provide a lifetime income stream after you retire. However, benefits don’t begin in your sixties. Maritime’s TRIflex Annuity Gold is an individual plan that allows you to reap rewards now as contributions of up to $50,000 are tax deductible annually. Additionally, some employers may match a portion of your retirement contribution. Think about it, you can save $1,000 a month for your retirement… and you only have to pay $500. That’s a pretty sweet deal!
No, we don’t mean go out and buy that killer pair of shoes. Instead, invest in expanding your skills and knowledge. Especially in today’s fast-paced, tech-driven world, the more up-to-date and diverse your skills are, the more employable you’ll be. Why not take short courses or an online course?
So before you blow that $15,000 think about how you can make it work for you. However you choose to invest, you’re diversifying your income stream and making a down payment on your future.