Simple Ways to Save Money and Invest More

canstockphoto0278465There are plenty of investment opportunities to benefit from these days. The stock market is very appealing, especially with the market growing at the present rate. Forex and other financial markets are also filled with opportunities to succeed.

Before you can start developing a strong investment portfolio, however, you need to save enough money to invest. For most people, this is where the biggest challenge lies. Fortunately, there are simple ways to save money and invest more.

Be Wise with Your Purchases

It is worth noting that a lot of investment opportunities are accessible even when you have a limited amount of money to invest. This means you can increase your ability to invest by saving on the little things. Being wise with your purchases is a great way to start.

That cup of Starbucks coffee you buy on your way to work, for example, can turn into a cool £50 investment at the end of the month. That may seem like a small amount to invest, but that should not discourage you.

Other purchases may allow you to save a lot of money. Instead of buying a brand new luxury sedan, for example, you can check out some of the best Volkswagen Scotland dealers – or a dealer near you – and find great used alternatives that cost so much less.

Settle Unsecured Debts

Your unsecured debts, including credit card bills and personal loans, cost so much money every month. The interest rates on these debts are relatively high, which means you’re spending quite a lot just to use the loan. Settling the unsecured debt is another great way to save and invest more.

Pick a credit card and repay it until the balance is £0. You will now have more money to allocate towards repaying other unsecured debts, which means you can settle them much sooner than the first credit card. As you settle more debts, you’ll have more money to save.

The compounding effect of repaying your debts is substantial. We often have more than 30% of our income allocated to repaying debts, which means that same 30% can be used for investments once the debts are cleared. If you still need to use a loan, choose the one with the lowest cost and the best tax benefits you can find.

Master Your Tax

The majority of people don’t really take advantage of tax deductibles and other tax breaks to the fullest. Take a weekend to go through the regulations and review your tax return. You’ll be surprised by how much you can actually save on your taxes alone.

Similar to the previous savings, there is no such thing as an amount too small. A £25 tax deduction is £25 you can invest, so be as meticulous as you can be and start finding ways to save on taxes. Trust me, there are plenty of deductibles and discounts to find.

These are some of the simplest ways to save and invest more. The more you save, the more you will be able to invest. As your portfolio grows, you will get more income and can easily save (and invest) more.