The 2020s promises to be a decade of financial revolution as the economic barriers between nations break down and the economy becomes ever more globalized.
There are now more banking strategies than ever that you can adopt to save money and ensure your money goes as far as it can. Here are a few banking options you can take advantage of.
8 Tips to make the most of your Finances
- Join the Fintech Revolution
You may have heard of challenger banks such as Revolut, Monzo, Starling, and TransferWise. These banking options are great because they give you bank accounts in more than one country.
With a combination of all three financial institutions, you can have Australian, American and European bank details, meaning you can be paid and spend in these currencies without losing money on foreign transaction fees or conversions. Most of these banks also support contactless payment systems like Apple Pay and Android Pay.
- Saving Pots
But one of the main reasons to get a Fintech or challenger bank account is the way in which they enable you to manage your money more easily.
Many of them do the cash flow for you, organizing your card spending into different categories. You can even set weekly and monthly budgets.
Many banks now include the ability to see loyalty points such as Avios air miles.
A digital receipt feature also allows you to see exactly what you spent at each store.
But one of the best options they include are savings pot or vaults. These allow you to put some money away for a specific purpose without having to open a new savings account.
For instance, you could allocate some money to savings, some to rent, some to save for a new car, and another pot for a credit card. And you could even raise some money with this reliable reseller platform.
By taking control of your money and being able to see more clearly how you spend your money, you can make better decisions.
- Save a Little Every Week
When we think about saving, we often think about saving a set amount for the entire year or over a month. However, saving a little bit each week is the better option.
By setting yourself achievable goals, you are less likely to give up and can feel proud of yourself instead of constantly feeling you haven’t met goals that are not realistic.
Be sure to put your savings into a place where they are difficult to get to. That way, you will not be tempted to access them all the time.
Be accountable to someone. Perhaps you can ask a friend or family member you trust to be your savings buddy, talking about what you have managed to save for each week.
- Invest Rather Than Save
This is important because interest rates are low at the moment. The best place to put your money is in property, as this is almost guaranteed to increase in value in the long term.
But if you don’t have the ability to do this at the moment then there are other investments you can consider. You could invest in property jointly with other people you trust to lessen the burden of the amount you have to find upfront. Or you could buy a percentage of a family member’s house.
- Stocks and Shares
You could also invest in stocks and shares. You have to be careful as these can fluctuate a lot and you can lose money. However, longer-term investments over 20 or 30 years can make you a lot of money and might even be a better option than a pension.
- Bitcoin and Cryptocurrency
The bitcoin and cryptocurrency revolution has allowed a lot of people to make money.
It can be a risk to put money into cryptocurrency, but the key is to speak to people who are experts in the field first to find out what currencies are hot at the moment and when it might be a good time to cash out.
Also, remember that it is worth spreading your money around to some of the smaller, newer cryptocurrencies rather than keeping all of your money in one currency.
- Attend Financial Meet-ups and Seminars
One of the best ways to increase your potential is to attend financial meetups and seminars to speak to other people and find out what they are doing.
It can be a great way to make new friends, but it can also help you think about finances in a different way and can give you some new ideas about where to invest.
- Banking Strategies: Follow Your Instinct
The best piece of advice in following banking strategies is to do what you think is right. There is no right way to invest your money but there are some tips that you can follow to change the way you think about money and make sure it goes further.
Be sure to get yourself a bank account that works for you, perhaps an account with one of the new challenger banks that has functions that can help you save easily.
Next, ensure that you save something every week rather than spending all of your money at once. And think in terms of smaller goals over a longer period of time rather than larger goals that you might not succeed in achieving.
And always try to invest rather than save, as the interest rates on many savings accounts are low at the moment.
If you are interested in more articles about finance, be sure to check out other articles on our blog.