The big topic and discussion right now is where to invest cash – it has been reported in the news that the Governor of the Bank of England is encouraging people to spend their cash!

So what are the options open to investing your cash?

– Put it in a deposit account and earn a very low amount of interest?
– Invest in property?
– Invest in a business?
– Invest cash in stocks and shares is a possibility?
– ISA’s, Pensions and other investments or what about government bonds?

The above are a few ideas of what can be done and in many cases for most people this is a bit of a dilemma! A colleague of mine is trying to raise a significant amount of capital for business investment purposes, and it seems as though the majority of the people he has approached are wary of the ‘Double Dip’ potential, so are holding on to their cash right now.

One of the problems with cash is that, certainly with interest rates so low, the amount you will earn with it sitting in a deposit account will not keep up with the rate of inflation, so that in the long-term the buying power of your cash will lessen over time.

However, this is not to say that you should rush out and spend it all, however, having said that I can quite understand where the Bank of England Governor is coming from, if people don’t spend because of their worry about a ‘double dip’, they will inadvertently bring about the ‘double dip’ anyway, as the result of holding back – a kind of self fulfilling prophesy as it were!

So if cash is not a good option, then what about the other options open to investors right now. Well the good news is that it is extremely cheap to borrow right now (if you are able to obtain the loan in the first place and if you shop around), so if you decide to borrow to buy property or to buy a business, then this is can be extremely exciting and highly rewarding.

Right now, that is exactly what I am doing – I am combing some of my cash with a loan from the bank (at the rate of just 4.59%!) to buy a business. The return on my cash investment is looking like 105% in the first year, which to my way of thinking is an excellent return on capital, and way in excess of what it will earn in a deposit account or in property and is well in excess of the UK’s rate of inflation right now!

I would always recommend that you do your homework, but don’t be blinkered – there are too many people that say I can’t do this or that, or I don’t have the money etc. Instead of telling yourself ‘I can’t do this or that’, ask yourself questions using the word ‘HOW‘; like how can I do this or; how can I do that; Your brain likes questions like this. If you ask the right questions your brain can set about to answer them, whereas if you tell yourself it can’t be done, well guess what – ‘It Can’t! and you will be right.

This article is not meant to be about investment advice, as I am not regulated by the FSA, but it is about making you think about other ways of using spare cash to invest in other areas that you might not have done before.

It might be worth your reading my article about the ‘Power of the Subconscious Mind’  if you want help with your thinking on this subject.

Where to Invest Cash
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18 thoughts on “Where to Invest Cash

  • 18 November, 2011 at 7:01 pm
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    well at 48 its about time to try, have a very exciting plan which involves the purchase of an agricultural development and further developing it in the holiday sector. require about 3.5 million and anticipate a full return within 5 years plus a strong shareholding within the future business..
    so where from here??

    Reply
  • 30 July, 2011 at 3:54 pm
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    I too share the same concept. Just leave enough money in the bank for emergency, extra money and a little more for leisure – rest of my money I buy gold…

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  • 27 June, 2011 at 10:04 pm
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    Property is always a good investment as long as you do your research and sums! It has been a bumpy ride in recent years in property market but if you look at the inflation of 4% a year in principal you will gain 40% over 10 years. There is always risk attached to any investment but how dares wins!

    Reply
  • 28 May, 2011 at 1:15 am
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    Hi Broker – so far so good, been a lot of hard work and my blog has suffered as a result over the last few months, but I should and already have seen a good return on my investment – good time to buy property though, as it is still a buyers market, well it is in the UK

    Reply
  • 20 May, 2011 at 5:11 pm
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    An interesting topic area. The economic uncertainties extend to all areas right now, it feels, including investments.

    It seems like we may need a little luck, as well as financial sense.

    Reply
  • 11 May, 2011 at 1:47 pm
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    People always ask themselves what they should do with the cash. I do ask myself that question too although I don’t have that much of money. But I do always wanted to invest in unit trusts to keep the risk low and planning to invest in stocks and properties in the future. Hoping for my goals to come true.

    Reply
  • 13 April, 2011 at 3:45 pm
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    Taking into account the current financial instability in the world, I think that the best way to invest money is to invest in silver or gold.

    Reply
  • 28 March, 2011 at 8:41 pm
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    Just remember, as they say “time is money” and with high monthly living expenses such as mortgage, utilities, food, insurances, etc. it’s easy to understand that not working while you start a new business can cost you much more than just the direct investment into your business idea. Ideally, you can create a business while still working your day job. It will take a lot longer, but you will be making money while you develop the business so that your investment won’t spiral out of control.

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  • 6 March, 2011 at 3:28 pm
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    How did buying business worked out for you?
    I want to buy a property but prices in NYC are crazy. Got to look for other areas but haven’t decided yet were.

    Reply
  • 10 January, 2011 at 12:47 pm
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    Investors do indeed have a dilemma, whilst there is a temptation to wait and see how the economy progresses, interest rates are so low that one can’t just leave the cash in an account.

    Investing in a business area that you know about (and so can gauge the risk) must be a good use of funds – given that you don’t throw everything at one opportunity, but spread the risk across several investments and of course have a balanced portfolio in any case.

    Reply
  • 10 December, 2010 at 11:22 am
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    Your right, it is much better to encourage good use of money under the current climate than scaremongery that the media seems to opt for. If you do have spare money, invest, start a business and put the money back into the economy!

    Reply
  • 6 December, 2010 at 12:45 pm
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    It’s hard to predict wich one investment would bring the best profits. Howevar, diversifieng should not make it worse, and business is not for everyone..

    Reply
  • 3 November, 2010 at 5:38 pm
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    If you’re thinking about investing in the health industry, I’d say it’s a huge and growing domestic industry that’s difficult to ignore; but uncertainty about the direction of health care reform makes investing tricky. Some companies that will benefit from cost reduction and expanded insurance coverage are worth considering such as Quest Diagnostics, McKesson & Abbott Laboratories.

    Reply
  • 26 October, 2010 at 2:49 pm
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    After reading your article, I feel refreshed to see such a positive perspective – even in these difficult financial times. I started my business a couple of years ago, invested heavily in buying and selling Pubs / Bars etc. and now I’m running my own pub alongside a separate business called People4Pubs.

    People4Pubs is a consultancy business, offering advice and guidance to entrepreneurs who are looking to start their own pub or bar. Take a look at our site for more information – http://www.people4pubs.co.uk
    Keep up the good work!
    Gareth

    Reply
  • 22 October, 2010 at 1:40 am
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    Very informative. Investing in a property is very good right now, but it is not all the time. Your blog is pretty good, keep it up.

    Reply
  • 1 October, 2010 at 9:12 am
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    You`re right: even in the recession period business will stay the best way to keep the money growing. Good article.

    Reply

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