Three ways to maximise your family finances
Do you have $1,000 or less to invest? Here are three strategic moves you can make with your money to help maximise your family's finances and get the ball rolling towards financial stability.
1. Put your money in a term deposit
A term deposit can help grow your money faster. Offered by banks and other financial institutions, term deposits allow you to earn a fixed interest rate over a specific timeframe – usually one month to five years. In general, the longer the term, the higher the interest rate you can earn.
Terms deposits can be a good option for families if you’re:
· Looking for a safe place to store your money.
· Saving up for big-ticket items such as a car, a wedding or a family holiday.
· Putting money aside for educational expenses.
With no fees and maintenance required, term deposits are a simple investment that’s easy to manage.
2. Invest in shares
Investing in shares involves buying stocks from publicly traded companies or purchasing units in a fund; it can offer people the opportunity to help save for a comfortable retirement. But share investing does carry risk, so it's important to make sure it fits with your long-term goals. It may suit families who:
· Want to adopt a more aggressive investment strategy.
· Have money to invest over a longer-term period (usually 10 years or more).
· Understand and are comfortable with the risks involved.