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Use Your Money Wisely

Posted by katiegardner on Feb 19th, 2010

There are lots of different ways to deal with various investments. One can buy stocks or bonds. One can buy real estate. One can invest in term deposits. One can even put everything into a simple savings account or safety deposit box.
Because there are so many options, it is important to know what can be done with any given investment. If one has stock in a company, for example, that stock cannot be placed in a savings account. If one has a thousand dollars it would be odd, and fairly pointless, to put that in a safety deposit box.
One can put cash into stocks and bonds, but it must first be converted to a check or money order. One cannot simply hand a broker thousands of dollars anymore. After they are purchased, stocks and bonds can be kept in a deposit box, but that can only store them, not use or keep track of them.
Buying land, with or without properties on it, can be an excellent way to build up money over time, but it can also be so much trouble maintaining things that is will ultimately not be worth it. Being a landlord can be a lot of work, keeping a building in repair; and taxes on unimproved ground can be levied in accordance with what could be put on the land.
Probably the best idea is a term deposit. It will keep track of your investment and will let it grow over time. The only real catch is that it cannot be withdrawn before a certain time.
Whatever form your investment takes, make sure to use the method that best handles it. Any resource managed poorly can lead to money lost.

Read my another article on Lost Super.

3 Comments to “Use Your Money Wisely”

on 06 Mar 2010 at 10:13 am1Ian@stock-options-made-easy.com

Some interesting points on the merits and downfalls of different investments.
on 08 Mar 2010 at 6:23 pm2Bruce

I’m generally bullish about the banking sector, we have had 20% retracement of banking stocks in Australia over the last 3 months which makes a good buying opportunity, many are trading around 16pe and have already expecting profits to double on 2008’s drop, which would put them around 12pe, some of the good value banks here in Australia are ANZ trading at only 1.7 times Equity, NAB trading at 1.6 times equity and Suncorp trading at 0.8 times equity, the other banks CBA and Westpac are well above equity and are now overpriced - 2.4 and 2.7 times respectively.
on 21 May 2010 at 7:44 pm3Peter Jensen

Great site guys! It’s really good to see first class quality articles on the net..keep up the good work I’ve now bookmarked you and will be visiting regularly. Cheers, PJ.