Your Paycheck: How To Spend It Wisely

It doesn’t matter whether you’ve been enjoying the fruits of your labor as a high-flying corporate professional, a construction worker or a freelancer, there may come a time when you want to get a firmer grasp on your finances.

More often than not, we live to our means and max out our bank account every month. The disposable income that we enjoy, we inevitably end up spending. You might enjoy eating out, socializing with friends, or purchasing the latest gadgets and gizmos to come onto the market.

However, this isn’t the most productive use of your disposable income. Instead, you could choose to invest your excess income to enhance any nest egg that you may be accruing.

Property

Bricks and mortar have been promoted as the safest investment over the long term for decades. If you can purchase the right property at the right price in the right location, you could have yourself an asset that pays for itself.

Working out rental yields against home loan payments can be tricky, but if you can secure a stable tenant over the long term, you could be sitting on a physical asset that will pay you back over the course of five years or more.

If at any time, you want to release the equity within your pad, you can sell up and take your profit with you. More often than not, amateur landlords choose to hold onto their investments until they are paid off and then sell up once the market has surged.

Alternatively, you may wish to take a more hands-off approach and allow a professional to manage your money. Investing in commercial property could see your money entering a property trust that focuses on long-term gains.

While you won’t have as much control, outsourcing your investment to an industry leading expert could be a wise move.

Wine

While partaking in your favorite tipple might not be the wisest way to invest your money, purchasing a crate or two of the finest vintage wines could be. Wine, like antiques, can get scarcer and more sought after over time.

Paying a small fee to store your chardonnay or Rioja could be a simple way of ensuring a sure-fire return on your disposable income over the long term. Keep a fine vintage for a decade, and you can’t fail to make money.

Forex

If you’ve always fancied yourself as a bit of a trader but don’t fancy the stress of getting out onto the floor of any stock exchange, you might fancy having a dabble in the Forex market. Study the markets and monitor different currencies.

If you can play the dollar against the yuan, and buy and sell at the optimum times, you could find yourself making short-term gains on your investment. Dummy accounts now allow you to practice before taking any real-life plunge with your cash.

While you may think of your paycheck as your immediate source of cash to enjoy a lifestyle that you have become accustomed to, you also need to consider your future. By investing some of your hard-earned money, you could prepare more astutely for your twilight years.

This post has been contributed by Ryan Gatt, it may contain affiliate links

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