Save Your Money

You might be earning a lot of money, and saving a good amount after meeting your monthly expenses. Why leave your excess money in the current account of your bank, when you can easily earn more money from it by depositing it in a savings account in your bank? For your information, the amount of money in a current account does not earn any interest. However, you can earn a decent quarterly interest on it if you deposit it in a savings account. Visit your bank, open a savings account with them, and transfer money to it from your current account. This is just the tip of the proverbial iceberg. You can make use of many other ways you can use to earn additional income from your excess cash. For example, you can allocate a specific percentage of your cash to purchase shares of blue chip companies when the market is down, and sell them when the market is bullish to earn money. Done properly and after a thorough study, allow you to double your money within a couple of months. This is much more than the small percentage offered by bank savings accounts. We shall be discussing about other ways through which you can multiply your cash in an almost risk free manner. However, you need to be careful so that you invest your money wisely so that you do not have to pay a hefty amount as tax. If you reside in Birmingham, you can seek the help of accounting firms birmingham.

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What are the other methods to multiply extra money?

Shares are quite volatile and you might end up wasting money by investing in them, if you do not have any idea about them. The good news is that you can seek help from share trading firms, who will guide you and tell you when to invest your money and in which share, so that you earn the maximum amount within a given period. Mutual funds are another option that you can use to multiply your money. Although they do not offer the same percentage of earnings within a given period, they are relatively safe, as you do not lose too much money on your investments even if the market crashes suddenly. This is because the managers of the funds allocate your money in shares of different companies. Some of them might report a loss in a specific period; other shares whose value increases during that period offset this loss. Investing in precious metals, especially gold, is a good idea, if you plan to invest your money for a long duration.

What about taxes

When you earn more, you have to pay more taxes. You can avoid this by purchasing tax-free bonds, as well as opting for life insurance and other products. The income tax department permits you to spend a specific amount on such schemes. The money so spent is not taxable. If you still have any doubts, get in touch with an accounting firm Birmingham and seek their help to manage your book of accounts so that you can earn money by investing it in different schemes without paying too much tax on the interest earned.