ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

What Is The Best And Safest Thing To Do With Your Money?

Updated on July 28, 2012
Source

 

What is the best and safest thing to do for you to do with your money so that it will do you the most good? In this new environment where even banks with long histories are failing and where change seems to be the only constant, just putting your money in the bank and having a stock portfolio does not seem adequate any more. In fact, at times, it does not even feel safe to put your money in the bank.

So, in this new world, what can we do with our money to best serve our wants and needs, and also to have enough to see us through our retirement years? The following are some of the best ways that you can spend your money, and ensure that you can make more of it:


Invest In Yourself
Sometimes, the best asset you have is yourself. And you are more of an asset that you realize.

Spend some money and take up a course to upgrade yourself, and maybe in a subject that is completely out of character for you - who knows, you may find a talent you never you had. Education is never wasted and it may just open up new perspectives on what you are involved in now.


Diversify
If you are putting your money in the bank, remember to split it between different banks.

And if you are investing your money, don't just concentrate on one type of instrument. Find a few instruments with relatively low and reasonable returns, and split your money between them.


Eliminate Debt
Debt is bad. If you have any debt, whether it's credit card, or mortgage, or others, do something about it.

There are many sites and articles on how to eliminate debt but you must know that not getting out of debt is costing you money. The interest that you pay on your loan, although it might not seem like much on a monthly basis, is really costing you a lot of money in the long run.

As an example, assume you borrow $100,000 from the bank at an interest rate of 5% with a repayment period of 30 years. I did a simple spreadsheet calculation and your monthly premium should come up to about $550.

In the first month, of the $550 monthly payment, $414 actually goes to paying the interest on the loan and only $136 goes to paying the principal. In other words, in the first month, after paying $550 to the bank, the amount that you owe the bank goes down by only $136.

The example is at a minimal interest rate of 5%. The credit card companies charges you double digit interest rates!

I say again - debt is bad. If you are in debt, do something about it.

Somebody should tell the US government that, but that is the subject of another hub. ;)


Save Money
Get rid of the unnecessary extras. If you are in the habit of going for expensive dinners, I'm sure you can find a cheaper place where the food and service is just as good. Or you can just go less often.

A good way is to keep a daily diary of how much you spend. After a few weeks, you might be surprised to find out where your money is actually going.


Start A Online Business
An online business is a great asset in today's uncertain world. It acts to supplement your income, and can potentially become your main source of income should you lose your job. Advantages of such businesses include:

  • Low startup cost.
  • Low running cost.
  • Does not need any inventory.
  • Can be run from your garage in your spare time.

Many people try to start such businesses totally on their own time, talent and resources, and find themselves overwhelmed. My advice is to outsource small tasks that you are not good at, or will take you too long to learn, or is simply too time consuming. As the owner of a business, your job is to be as productive as you can be, and spending some money to free up your time might be the best investment you have even made.


Conclusion
The world is in the midst of unprecedented change. What used to work well in the old days, like good skills, a good job, good spending and saving habits, are no longer a guarantee of financial security in this new century.

The best way would be to stay agile, stay hungry and stay informed. Not only will you survive, but you will definitely thrive with such an altitude.

Comments

    0 of 8192 characters used
    Post Comment

    • wandererh profile imageAUTHOR

      David Lim 

      10 years ago from Singapore

      Well, isn't that what money is all about? To provide us with a certain standard of living? It's a bit of a contradiction then if you need to sacrifice your standard of living to save money. ;)

    • countrywomen profile image

      countrywomen 

      10 years ago from Washington, USA

      I agree we need a certain standard of living at the lowest cost of living. Good hub.

    • wandererh profile imageAUTHOR

      David Lim 

      10 years ago from Singapore

      Thanks! And the best way to save money is to save it in such a way so that it does not affect your lifestyle. You can have your cake and eat it too. :)

    • countrywomen profile image

      countrywomen 

      10 years ago from Washington, USA

      Good tips esp money saved is money earned. Thumbs up.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)