Short-Term Investments for Long-Term Savings


Short-Term Investments for Long-Term SavingsAs the old saying goes, sometimes you should speculate to accumulate. Whatever your long-term financial goals may be — saving up the deposit for a new house or helping to set up your child with a university fund — you might find that an initial outlay in the short term could help improve your overall prospects in the future.

It isn’t just limited to shopping around for the best interest rates either — although many ISAs offer that level of stability as long as you’re prepared to pay in a large enough amount to get the benefits — there are many other things that will help you save money in the long run with a minimal spend.


There’s a reason why the Costco chain can claim an increase in membership over recent years — from the figures reported to Forbes, it appears that both new and renewed membership is on the rise — and that’s down to the savings their customers can make on their shopping bills.

Trade professionals and those who work in certain other sectors such as doctors and pharmacists can stock up in bulk on household essentials and various foods, ostensibly for resale. However, it’s recently become an established method for its customers just to save money on their own shopping. Due to the sheer bulk of the purchases, it does require a big spend at the checkout, but over time the savings can increase remarkably. For just an annual membership fee it’s well worth investigating!

Solar panels

One way to get hold of rising energy bills is to fit your home with solar panels; not only are you doing your bit for the environment by using an alternative source of power, but you’ll also save on your household spend as a result.

Although the cost of fitting solar panels to your roof can be anywhere between £6,000 and £9,000, you should immediately benefit from the installation due both to the savings made on your energy bills, as the panels can help power your home, and from the Feed-In Tariff scheme introduced by the government.

Under this new scheme, the power which you aren’t using is sold on to your energy provider, which means you’ll earn money. Depending on the fixed energy rate you agree to, this amount can go up and down just as the values of other commodities do.

To save you money on the initial outlay, some companies can install your solar panels free of charge — however, aside from your energy bill savings, this will not make you any more money as the installer can then take their share of the energy generated under the agreement. If you’re willing just to save money on your bills then by all means consider it — however, paying for the installation costs upfront is a far more lucrative prospect in the long run.

Cash ISAs

Taking out an Individual Savings Account may be a good option — these are savings accounts which you can contribute to with after-tax income. You don’t pay any additional tax on the interest they earn. The upcoming NISA (New Individual Savings Account) increases your allowance from £5,940 to £15,000, meaning that you’ll save even more money for each pound you’ve got stashed away in there to begin with.

Putting the full £15,000 allowance into an account is obviously a big financial commitment, but in the long term the amount of tax-free savings you stand to make on it can be hugely beneficial.

Some banks also allow money to be transferred between ISAs if their deals are more appealing to you; while most will also allow withdrawals.

Whatever your money-saving strategy, there are ways that can benefit everyone.




Jordhan Briggs is a content writer and copywriter at Enova International, Inc. dedicated to providing the most informative and useful content about living a rewarding life on a budget.


The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.