There can be no doubt that we live in economically challenging times, both from a domestic and an international perspective. From the continued uncertainty surrounding Brexit to a lack of real wage growth, households are being hit hard and facing up to the prospect of a bleak 2017.
Nothing embodies this more than the current savings rates in the UK, which were slashed to the bone by lenders who are keen to optimise their income in the current climate. With some high street banks currently offering a basic, 0.01% savings rate to customers, the idea of leveraging income to build wealth seems like a fanciful dream in 2017.
Why Speculation May Provide a Better Course of Action
While savings rates may have plummeted and remain unlikely to showcase little more than incremental growth in 2017, however, the same cannot be said for disposable income levels. Recent statistics actually suggested that the average Brit recorded a post-tax income increase of £600 during 2016, for example,with total earnings now believed to be approximately £1,000 higher per annum than before the Great Recession. While we must balance this by highlighting that the cost of living in the UK has increased, it is clear that Britons are better off than they have been for a decade.
If we have an economic climate where disposable income is rising and savings rates are down, however, how can households look to make the most of their earnings? The most logical solution is actually to consider investing your income rather than attempting to save it, as this allows you to capitalise on having more money without forcing you to compromise and accept potentially low rates of return. The key, of course, is to select investment options that suit your outlook and level of disposable income, while also leveraging any expertise that you may be able to offer.
How To Speculate Successfully
Research your potential markets is therefore key, as this will build your knowledge base and allow you to make informed decision. You may also want to partner with a viable, online trading platform, as these outlets usually offer access to various financial markets such as forex, indices and precious metals.
If you have a risk-averse outlook and have minimal time to spend seeking out potential investment opportunities, you may want to consider committing funds to a managed portfolio. These accounts combine various assets and derivatives depending on your risk outlook, offering you access to variable returns that enable you to make your income go further in a difficult financial climate.