How To Save Money & The Secret To Wealth
All over the world people are asking how to save money in these difficult economic times. In the last few years we have learned that our money and investments were not safe in our previously trusted financial institutions.
The real estate market that so many bought into was recently slaughtered because it was believed the value would only increase. Our retirement funds and stocks were depleted due to poor management and investments by the very people that were entrusted to grow or at least save our money and provide us with a comfortable amount that could be used to enjoy a financially secure future. So the question remains on how to save money when the economy is so unstable?
It is possible to save money and not worry about it being there tomorrow?
Considering our entire financial system today is based on printing money with nothing backing its value except for a promise by leaders that it’s worth its face value, despite the currency rising and falling like a roller coaster on a daily basis when pondering on the question of how to save money one would be forgiven for thinking that it was a fool’s idea in these troubled times. We simply cannot trust our institutions to secure our future and handle our money responsibly. Unlike banks, corporations and major investors who tend to invest in bad debt, the secret on how to save money is to buy a tangible asset that has value. While that value may increase or fall based on demand, you still have your money backed by a physical asset that you can hold in your hand. One that you know will rise greatly during troubled economic times as more people try and purchase it. In fact the assets we are talking about are precious metals, which have outperformed all other investments over the last ten years and again, they actually exist as opposed to promised interest rates that may or may not be there over time. There are several ways that one can invest in precious metals as the answer of how to save money for the coming years.
Some people that have cash on hand can simply purchase gold coins, gold and silver bullion and keep them secure in their own homes or a safety deposit box at their local financial institution. When purchasing gold coins you must always be aware of the condition of the piece itself as this does play a factor in its true value. Have the coins appraised and insured if you feel the need to protect your investment. Another way to purchase precious metals for those wishing to save money and increase their net worth is to use a broker. These are companies that offer savings plans that convert your monetary deposit into bullion or coins. They will guarantee to hold your metals until you reach a certain amount at which time you can withdraw the investment and store it yourself. This is a great way to purchase precious metals if you do not have enough cash on hand to purchase an ounce of gold or silver. You can do automatic deposits and simply watch your investment grow until you choose to collect your tangible assets. These companies usually charge a small fee when you withdraw your precious metals, but it is far less than the markup you see at your local coin dealer, remember this when thinking about how to save money efficiently, which should always be top-of-mind.
How to save money by getting involved in the right asset class at the right time
Those that are familiar with the stock market and have started to wonder how to save money are beginning to realise that they can simply switch their strategy and invest in a gold exchange. The issuing bank will have gold on hand to back your investment; you are still only given a document stating your investment. This can lead to a possible loss if the bank collapses however they are usually safe investments and as these banks only deal in this one asset and fees are extremely low. Another investment for those not wishing to store physical assets but understand the importance of precious metals, can invest in gold based mutual funds. These involve companies that mine gold so it is important to only invest in those that list companies with proven successful histories. Again, there is some risk involved in any investing strategies where you are not receiving a tangible asset so do your homework wisely when investing in gold based mutual funds. For those that wish to invest in something a bit cheaper, you can do the same as listed above for silver or any other metal. Silver is a great investment due to its industrial uses. If in abundance, then it will go down in price however due to the need for it the prices often skyrocket when its peak hits in the market. It’s relatively cheap and can yield quite the return when holding the asset until its next big cycle.
We know that investing in precious metals is a great way to save money, however when is it the time to buy and when do you sell if you choose to do so? Buying is simply when the price is low. Now the brokerages listed above will adjust your ownership based on the going rate of the gold they hold in your deposit account. This means if the price drops they will increase the amount you own to account for your deposit and lower price of gold, so those are safe to work with. If you are purchasing on your own or investing money in the market you need to do so when the price is low. Continue purchasing as the price climbs until you feel you are at your threshold for getting a great return on your investment. If you have paper ownership in some form of trading or fund, you may want to sell when you see the value drop just over ten percent. This will leave you with a nice return on your investment and you can wait for it to fall low enough to start the cycle again.
How to Save Money with Tangible Assets
With tangible assets it is recommended to simply hold onto them unless you have to sell for some reason. Keeping the physical metals is how to save money as you simply continue purchasing, and as mentioned above, it always outperforms in the long haul. Think about how much you would currently have saved if you purchased silver consistently over the last 20 years and saw that silver and gold grow in value by over 400% as it has over the last 10 years alone. You would have saved quite a bit of money and earned significantly more due to the increase in value. You have now been informed of how to save money in the current economic climate and you never know, you may have learned the secret to becoming wealthy and how and when to jump on and off the elevator to make a major difference to your net worth. More about how to save money through Investing.