The purpose of any investment is to provide a return on your capital. In the current climate of high inflation, leaving your money in a savings account is not a good idea if you need to grow your money. It does make sense to have a decent cash reserved for a rainy day, but f you need growth you will have to take some risk.
Stock Market Investment
Another option is to invest in the stock market. The advice given by Warren Buffett is to simply invest in a good ETF over the long term. If able, you should buy more of your favourite ETF’s each month, sometimes referred to as cost dollar cost averaging. Over the long term, you will then get the average of the market.
If you would like to take more control of your investments and have the time to work full time at growing your wealth, you could consider property investment. Start off small with a property that is in good condition and in an area with high demand for rental properties. Once you get some experience in dealing with the banks and tenants, you can consider expanding your portfolio.
Multi Property Landlord
If you have established your self as a landlord, it is easier to expand to enlarge your portfolio with multiple properties. One of the biggest demands on your time will be getting reliable tenants and maintaining the property. This can be outsourced to a property management company for a fee.
If you have already considered landlord insurance to protect your self against expensive claims now is the time to look at the options for multi landlord proper insurance available in the marketplace.
Eamonn Turley from Multiquotetime recommends using sites that provide multiple quotes for property insurance to quickly get comparative quotes and then research further to find your preferred insurance provider.
This type of insurance can vary quite a bit depending on the insurance provider, which is why it makes sense to use a comparison site to get multi property insurance quotes. Once you fill in some basic details, and you’ll be given a list of quotes from the most popular providers.
Most polices will be similar, but do check the small print and in particular how long the cover will be valid should one of your properties lie vacant.
Most polices will not cover property that is left vacant for a period over 30 days. If your property will be vacant longer, contact your existing insurance provider to discuss topping up your insurance to unoccupied property insurance.
Never Sell in a Housing Slump
House do not always go up in this way, they are similar to the stock market. During down turns, you may be facing a paper loss. If possible, avoid selling and until prices recover. If you have over leveraged and have to sell, you will suffer major losses, that may be difficult to ever recover from.
In summary, leaving money is a bank savings account during high inflation will cause your saving to shrink, not grow. For some, the security of a bank savings account will outweigh to risk their cash for higher returns. Property investment is one oof many ways to put your money to work and grow your wealth over the longer term