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4 Savvy Ways To Invest Your Leftover Cash

One of the best ways to build wealth is to reinvest your leftover cash. So, if you find that you regularly have a rather sizeable sum left in your account when your next pay cheque lands, then you ought to start doing something with it and investing your money in profitable, sensible ways.

4 Savvy Ways To Invest Your Leftover Cash - piggy bank image
Image by 3D Animation Production Company from Pixabay

1. Investing In Classic Shirts

The market for classic sports shirts and vintage kits has boomed recently, with millennials and Gen Z desperate to don the names of their heroes and idols from the 80s, 90s and early 2000s on their backs. Sites like Classic Football Shirts charge high prices for rare or vintage football kits, so if you have a little extra cash lying around why not see if you can find some popular jerseys for cheap either online on sites like eBay or in your local charity shops. Alternatively, you might decide to look to the future rather than make a quick buck and purchase a couple of popular sports shirts from today that could grow in value in the future.  

2. Buying Cryptocurrency 

The recent rise of cryptocurrency has seen the price of the like of Bitcoin, and newcomer Dogecoin, skyrocket. Don’t miss out by buying Dogecoin, Bitcoin or another cryptocurrency today, as you could be sitting on an absolute goldmine in years to come. There is plenty of risk attached to this strategy though; there is no guarantee these stocks will rise. That said, if you have the spare cash to invest, then you should be able to take the gamble and hopefully come out better off.

3. Put It Into Your Pension

Fancy retiring early? Then this could be your route to achieving just that. Upping your pension contributions is the ideal, tax-free way to save away your leftover cash and truly begin investing in your future. Your pension pot will only grow bigger with inflation, and the taxman can’t touch it, so this is a surefire, foolproof way to store your money away and seeing it grow with little effort. Result!

4. Get On The Property Ladder

Finally, the most expensive of ways to savvily invest your extra cash is to put it towards a deposit for a house. Getting on the property ladder is tough but investing in real estate is one of the most secure and potentially lucrative investments you can make. There aren’t many quick wins in investing in property unless you get particularly good at buying and flipping homes thanks to quick renovation jobs, so you might have to be a bit more patient to see a return on this investment. Nevertheless, putting your money into property could quite easily earn you a pretty penny, and it is an excellent way to invest your leftover cash. 

Ultimately, there are plenty more ways to invest your money that we haven’t covered. However, these four tips are some of the savviest ways you can use up leftover cash to make a profit. Whether it’s something as cheap as picking up a classic football shirt, or something much pricier like buying a house, investing your money in any way is better than just letting it sit there. 

How To Understand Car Depreciation

Depreciation affects nearly everything, and for cars, it can be very critical when you want to resell. Once you drive a car out of the car lot, its value depreciates alarmingly. Experts estimate that brand new cars depreciate by up to 20% when they are driven from the dealership to the home. There has been quite a misconception about car depreciation, and this article aims to bring a level of understanding of the whole issue.

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Understanding Depreciation

Depreciation is the term that refers to the difference in the value of a car from the time you buy it to the time you intend to resell it. Studies from CAP Automotive indicate that average depreciation costs as much as three times what you spend at the petrol pump.

Although the depreciation level varies from makes and models, generally, the range is between 15-35% in the first year. By the third year, depreciation rises to 50%. According to motoring cost experts, it is better to choose a car that retains its value than focusing on fuel economy. This means you may recoup much more if you decide to sell your car.

What Affects The Rate Of Depreciation?

Different things affect the depreciation of a car, but here are a few of the general reasons why some depreciate more than others.

Mileage

This refers to the number of miles that your vehicle has been driven. In essence, the more miles you have on your car, the less value your car holds. The average mileage is about 10,000 per year.

Reliability

Cars come in various grades of quality, and some are more reliable than others. Based on usage, experience, expert reviews and others, some cars for sale have built a reputation of reliability over the years. So, for instance, a Mercedes may be more reliable than a Toyota.

Ownerships

The more owners a vehicle has had, the more unreliable it seems. This is because if it is assumed that if it were durable, it would not be sold as much. So the fewer owners a car has, the better.

Overall condition

This plays a vital role in the ability to resell your car. Any damage to the body, exterior, interior, or malfunctioning features will definitely decrease your car’s value.

Service history

You should ask for the service history complete with receipts as it is a very important detail before purchasing a car. The service book must also indicate that all servicing was done as recommended by the manufacturer. With this, you can tell how often or what fixes the car has undergone.

Length of warranty

This ensures that any resell goes smoothly; most people are quite sceptical when it comes to warranty. Three is a good deal, but some manufacturers are now offering up to seven years which can really aid the sale of your car.

Tips to reduce depreciation

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Even though depreciation is bound to occur, there are a few things you can do to slow down the rate. Firstly, try not to exceed the average mileage. Also, service and maintain your car regularly and desist from making race modifications. Lastly, sell before the new models are released.

Realistic Ways To Build Wealth

Many of us want to be rich but we have rather unrealistic ideas about how to attain that. We might purchase lottery tickets every week in the hope that our numbers might finally come up, or we might use betting sites in the hope that we might win a big cash prize.

Now, there’s nothing to say we won’t become rich using these methods, but the chances are rather slim. Thankfully, there are other, more realistic ways to build wealth, and these include the following. 

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#1: Invest (with a diversified portfolio)

Have you started investing yet? it might be that you haven’t. People are generally put off the idea because they don’t know where to start. They also fear losing money in market downturns, and are worried about receiving bad investment advice. To be honest, we can understand these concerns. However, investing is one way to build wealth, so for those wanting to improve their financial future, it should be considered. 

There are many ways to invest, of course. You could trade in stocks and shares, invest in real estate, or build wealth using a crypto trading website. It doesn’t have to be one type of investment over another, because the general consensus is that you should diversify your investments if you can. This way, you have a greater chance of earning big money, as even if the market takes a downturn for one type of investment, you might still see an upswing in another. 

To get started (if you haven’t already), check this investing guide for beginners. Then look online for more information, as the more knowledgeable you are, the greater your chances of success.

#2: Boost your income with a side-hustle

The more money you can bring home each month, the better, right? You will then have more to put away in a savings account, and you will build your wealth from your extra income and the accumulated interest. So, consider the types of side-hustle that suit you, and do whatever is necessary to get started. 

What kind of side-hustle could you begin? Well, as we have already established, investing could be your side-hustle. You could also start an online business, sell items for a profit on eBay and other eCommerce sites, rent out a room in your home, or do one of a million other things, as there are loads of ideas online. We discussed one passive income business idea here. Do whatever will excite you, as the more happiness you gain from your side-hustle, the more likely you are to stick with it. 

#3: Move into a better-paid career

If you can’t quite make ends meet (or put savings away) because of your current career path, it might be that a move into another career could be right for you. Admittedly, you might have to start on the bottom of the career ladder again, so you might not earn the big bucks right away. And you might have to go back to school too, be that online or offline to pick up a few new qualifications. But the rewards will be worth it because if you do choose a career path that gives you the opportunity to build wealth, you will be putting yourself on firmer financial footing. 

Here are some of the highest-paying jobs in the UK.

Finally

So, buy a lottery card if you want to. And make the occasional bet if you can afford to do so. But to make your dreams of building wealth come true, try more realistic avenues. We have suggested just a few options but continue your research online and around this website to learn more. 

How To Save Money As A Driver

Owning a vehicle of any kind, such as a car or a motorcycle, is a costly thing to do. You need to factor in costs for fuel, for insurance, for maintenance, for taxes, for parking, and sometimes for storage too. Yet for many people, it would be impossible to carry out their daily tasks – including heading to work – without a vehicle. The good news is it’s possible to save money when you’re a driver by implementing a few changes and paying attention to what you need to do. Read on to find out more.

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Image by Ryan McGuire from Pixabay

Maintenance 

One of the biggest costs associated with owning a vehicle is maintenance. Having your car or motorcycle tuned up at least once a year will ensure that it runs more smoothly and lasts longer, so it’s a good idea to have it done (and it might be a contractual requirement of your insurers or the company you are leasing or buying the vehicle from, so you must check this out). 

The problem is that paying out for this work to be done once a year and sometimes more depending on how many miles you drive is expensive, and when there is nothing wrong with your vehicle, it can seem like a waste even if you know that it’s potentially preventing a bigger problem in the future. 

To keep costs down when it comes to the basic maintenance of your vehicle, you can do it yourself. Even if you’ve never looked under the hood of a car and you don’t understand the workings of a motorcycle’s engine, you can learn what you need to know. You can also purchase any equipment or parts like BMW engine parts online, ensuring that you always have what you need. Of course, major repairs and more complicated jobs should be done by an expert, but the smaller stuff can be done at home for a fraction of the cost. 

Change Insurers

Another big cost for vehicle owners is insurance. It’s a legal requirement so you can’t go without (if you do you risk fines or even disqualification from driving), but it can cost a lot of money each year, even if you pay it monthly. The more claims you have made, your age, and even where you live can all have a bearing on the cost of your insurance, but did you also know that the cost is not set? In other words, you can shop around for a better deal when you need to renew your policy. 

If you choose to do this, you may well find that a different insurer will sell you a policy for much less than you’re paying right now. Remember, though, that you’ll need to ensure the level of cover is the same if you want a really good deal. 

Change Your Tires 

You might not realize it, but your tires might be costing you money. If you have uneconomical tires on your vehicle, your fuel consumption will be higher, and, simply put, that means you’ll be topping up the tank much more often. Switching your tires to more economical ones means that you’ll save a lot of money on fuel over the year compared to not changing the tires.

You might be put off from doing this because the tires you need to change to are more expensive, but the fuel savings should offset this issue, and since the tires should last for several years, will make you money in the end. 

How To Leave The Stress Behind When Moving Home

A recent study found that on average, people will move home eight times in their lifetime. You would think that the frequency of such moves would mean that it gets a little easier (or less stressful) over time, but this simply not the case. In fact, moving home is often the cause of great stress, be that due to financial pressures or property induced woes.

However, there are several steps you can take that make moving home a little easier – meaning you can focus on the positive side of moving – not the negatives! 

How To Leave The Stress Behind When Moving Home - moving boxes image
Photo by HiveBoxx on Unsplash
  • If you are selling your current property, figure out how much your house is worth. Consult with experts to ensure that you are not selling yourself short, as you can use the extra cash towards a downpayment for your new home. 
  • Work closely with a Mortgage broker to ensure that you get the best deal on a mortgage. They have years of experience within the industry and are able to provide you with invaluable knowledge and insight that could save you hundreds. 
  • If you know you want to move, but aren’t sure where you want to move to – write down a list of everything you need from your new home. For example, do you need access to certain amenities? How long is your ideal commute? If you have children, you might also want to consider the nearby schools. 
  • Look around a variety of different properties before signing a contract. By shopping around, you’ll be able to gain a clearer picture of precisely what you are looking for – and you’ll know you are making the right decision when you find your dream home. 
  • When you decide to move, ensure that you have a clear budget in mind. Figure out how much you can spend on the move, taking into consideration some of the hidden costs of moving, such as removal fees. 
  • A large majority of the stress associated with moving is tied up in packing. Therefore, you should get started on this task early instead of leaving it till the last minute. Remember: the sooner you start packing, the sooner you finish. 
  • If you plan to redecorate your new property, see if the bulk of the decorating can be completed before the move. This means that you won’t be getting in the way of any of the decorators, and you can unpack right away after the move. 
  • If you are worried about finances, take an affordable approach to moving. For example, you can save money on buying new furniture through DIY projects or buying items second hand. Additionally, you can earn a little extra money by selling anything you no longer need or use. 
  • Another way in which you can reduce the stress associated with moving home is by taking your time. Unless you are moving for work, you have plenty of time to organise the move – meaning you don’t have to do everything right away. Slowing the process down a little also gives you a chance to save up money. 
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Photo by HiveBoxx on Unsplash