January 28, 2016, 8:00 am

Saving and Making Money in 2016 – How to Invest and Where to Save

by: The Financial Blogger    Category: Personal Finance
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New Year has come and gone, and 2016 is slowly marching on. Now that January is all but a memory it’s time we all sat down and had a look at our finances. For many people around the world this doubly true with April, and the end of many country’s fiscal years, getting steadily closer. If you’re looking for ways you can save money in 2016, whether that’s for paying off bills or because you’re looking to start your very own investment portfolio, here are a few tips to help you get the ball rolling.

  1. Take a long hard look at your spending habits over 2015

The first thing you need to do if you want to make a difference is taking a look at where you’re starting from. How much money did you make in 2015? Where did that money go? How much debt do you have to pay off? Take a look back over your spending for 2015 and try to get a rough idea of your spending habits. If you can’t make head nor tail of where your money went, track your spending over the course of the next month and multiply that by 12 – while it may not be an exact reflection of your annual spending, it will give you a ballpark figure of how much you spend on things like coffee and cigarettes.


  1. Build a better budget for 2016

Now that you have a rough set of figures in mind, you can start working out where you want to save money. Any money you save can be put towards something else, whether that’s paying off debts, paying towards a holiday or wedding, or even just putting aside to invest later on. If you need any help with the way you build or format your budget, there are plenty of free online tools and resources you can use.


  1. Shop around for better rates

There is a surprising amount of money which can be saved by changing everything from your energy provider to the people you bank with. Shop around for the best rates and be aware that the introductory bonus rates that you were given last year probably won’t apply for much longer. If you change any given account to one offering better introductory rates, you could feasibly save up to $150 per year – do that 5 times and you have an extra $750 to play with. Every little helps, as they say.


  1. Consider consolidating your debts

If you’re struggling with multiple debts it’s well worth looking into the idea of consolidating your debts into a single easy to pay loan. There are a huge number of loan products on the market which can help you do just this, though the products available to you will differ based on your location. If you live in England this could be an IVA; if you live in Scotland you could apply for a Scottish Trust Deed; if you live in the US there are further debt consolidation loans you can look into. Just make sure that whoever you talk to, whichever country you live in, you seek professional advice from a financially responsible, regulated body.


  1. Work out how much you’re ready to risk

If you’re looking to invest your money you need to be aware of the risks. No investment is entirely safe, regardless of what you may have heard elsewhere online. The old adage ‘no risk, no reward’ is actually truer in the world of investment portfolios than almost anywhere else.


There are several ways you can invest your money, from discretionary portfolio management where you leave your financial decisions to a professional investment firm, to portfolio management options where you set the rules over how and when you want to sell your investments. Either way you need to make sure that you’re happy with how much you’re risking when you step into the arena. Every investment is a risk which may or may not land you a substantial reward. Depending on the company structure, you may actually become liable for further losses too, so make sure you do your research before you start investing money.

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Go Scotland!

Welcome back Mike!