You Can Still Make Money, Here’s How

If your finances are one of your biggest priorities, then you need to make investing a big priority as well. Smart investors can use the savings they have to earn themselves money. So, if you invest well, you earn from it.

Investing your finances well means paying off your student loan debt sooner, buying a house and paying more on it each month and even retiring sooner than you thought. In the end, smart investing means you’re more financially secure.

If these goals sounds similar to yours (or you have your own), then here are a few helpful tips investors have used to boost the money in their accounts.

Boost Your ISA Allowance

You should already understand what an ISA is, and best thing about it is that any money made is completely free of tax. If you have a regular ISA, you’re not liable to make much from it. There are, however, some better ways in which to use the ISA.

In order to make a decent amount, you’ll have to max out the allowance. Say you make out at £15,000; by the time 10 years passes, you’ll have about £250,000, dependent upon the investment growth and ISA allowances increases.

Once the money’s been invested, you’ll need to move it around within the ISA’s protection. Place that £250,000 in a stocks and shares ISA that makes five percent, then you get a £12,500 tax-free income every year. That’s a lot of money for retirement, isn’t it?

Modifications To The Dividend Tax

There has been an array of changes to the budget already, and the one that can affect people is the £5,000 yearly dividend allowance. You may be subjected to pay more taxes if you have any of the following:

  • Partly paid in dividends
  • Earn money through share dividends

In order to get the most from the investments you make, you need to ensure the highest possible yield dividend investments are within the ISA and not countable toward the allowance.  You also want the lower risk (lower yield) investments to be outside the ISA, as they don’t have a high return on investment.

If you own a business, you can get the most out of the dividend allowance by paying a partner a dividend of £5,000 or less.

Invest Using P2P Lending

While many people take the time to invest in stocks and shares, it’s still a worthwhile option to diversify the portfolio. One strategy that’s seen some popularity is peer-to-peer lending (P2P lending), which can be used to invest or borrow money.

How does it work?

You put your money into a portfolio of small businesses, essentially spreading the risk. This helps you to earn interest. It eliminates the banks so you save money and getting a higher return on investment because you’re dealing with small businesses.

Zopa and sites similar to it can set up the process, allowing you to invest your money easily where you want it to go. For 10 years now, Zopa has dealt with nearly £1 billion in loans, claiming they can give people a five percent return on their investment each year.

Each investment has risks that you need to consumer, which is why you must understand how things work before you commit money to anything.

Investments In Government Renewable Energy Grants

Governments around the globe are offering incentives to people who take advantage of solar energy for its “go-green” property. If you install solar panels for your home or business, you can ask for a tax-free income for 20 years for the government on energy you produce.

However, you must make sure that the installation you undergo meets the guidelines the government has set forth to ensure payment.

This means shopping for your solar panels, choosing a reputable company that doesn’t pressure you into buying from them.

A standard 4KW system will have a cost of up to £6,000. However, it’s not uncommon to get requests as high as £12,000. These companies want to sell you on their costly financing terms that can make the cost easily exceed £15,000.

With a £6,000 or less system, you could get a 15 percent return on investment for more than 20 years – certainly more than £6,000 in your hands.

It’s imperative that you do your homework and research before you sign a single thing. There are some companies who only want to take you for a ride and keep your money.

Again, just make sure you do your sums before you sign anything, because there are some less than legitimate companies out there.

Final Word

There are so many ways to invest your money and expand your portfolio. There’s no reason to have a lot of money in savings to make worthwhile investments. Begin small by learning what options are available and going with what sounds appealing to you. The most important thing is to invest wisely to get the highest return on investment possible.


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