Whether we like it or not, money makes the world go round. While financial literacy was once a relatively optional skill, as most people earned enough to get by and even save money without thinking too hard about it, the recent rise in the cost of living has changed this.

Now, it’s important for everyone to learn how to better invest their money rather than letting it go to waste. With this in mind, here are a few tips to help you make smart investment decisions.

Debt Busting

You can’t invest money that you don’t have. So, never get a loan in order to invest your funds. The only potential exception to this is real estate investing, but we’ll get into that later.

Instead, focus on getting rid of your debts before saving or investing. The interest rates on your debts are often more than any interest or dividends on money that you’ve invested. 

There are a few ways to get rid of debts quickly. Some loan providers don’t allow you to pay your debts immediately, but you can still pay the maximum amount back to reduce your interest as much as possible.

If you have a lot of debt, consider either consolidating your debts into one low-interest loan or using a snowball method of paying off one debt at a time to slowly get rid of them all.

Real Estate Investing

One of the most stable forms of investment is real estate. Unlike other debts, it’s common to take out a mortgage when buying a property, as you hope to either rent it out and get a profit that way or to sell it on. 

When you sell a property, ideally for a profit, you pay off your mortgage and put something towards the next purchase. Over time, this will grow your portfolio and allow you to hold onto more and more properties.

When selling your property, use a trusted service like Premier Property Buyers so you don’t have to hope that a private sale will actually go through. You can get your money quickly and get ready for your next investment.

Building Your Savings

Is it better to save or invest? There are pros and cons to both.

You will generally earn a lot more when you invest your money than if you put it into a high-yield savings account, as interest rates on savings are fairly low. However, this increased earning potential does come with a measure of risk.

Savings accounts are also more liquid and easy to access. Often, it’s a good idea to get the best of both worlds.

Have a savings account for emergencies and for planned purchases, so you have some money that you can access when you need it. But if you want to save in the long term and lock your money away, choose a low-risk investment strategy that will slowly appreciate over time. Yes, there’s still a risk, but not to the same extent as other investments.