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If you're lucky enough to have £100 left in the bank at the end of the month, it might be tempting to blow it all on a night out. But then you’ll have nothing left and you’ll be back in the same position that you would have been if you hadn’t saved the cash. You’re much better off doing something sensible with it so you can put yourself in a stronger financial position in the long run. It might sound a bit boring but it’ll pay off in the future when you’ve got the cash to spend on fun stuff all the time. If you’ve got £100 burning a hole in your pocket, here are 3 sensible things to do with it.

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Pay Off Credit Cards

It might feel like you’re just burning the £100 by putting it into credit card debts but that interest is eating into your bank account every single month. The quicker you clear it, the more expendable income you’ll have. Even if the minimum repayment is a lot lower than £100, you should just clear a chunk of the debt anyway. You’ll notice the difference when you pay it all off and you’ve got extra money at the end of every month.

 

Invest It

The most sensible thing to do with excess cash is always investing it. You can quickly turn that £100 into £1000 if you’re clever about it. Then you can invest that £1000 again and start watching your bank account grow. Investing is a risky game, especially if you don’t know much about it and a lot of investments need more than £100 upfront. But forex trading is a great investment that you can get into with just £100. The foreign exchange trading platform is where you trade currencies. You buy some currency and then sell it back when the exchange rate changes in your favour. Just be aware that there is always the chance that you might lose it if things don’t go your way.

If you’re put off by the risks of trading and you don’t want to lose your money, you could put it into a high interest savings account instead. The return that you’ll get on it will be much smaller but there is no chance of losing it all. However, you do need to keep an eye on inflation because if it outstrips the interest you’re getting, your money is losing value.

 

Peer To Peer Lending

Peer to peer lending is a great innovation that takes the power out of the hands of the banks and allows businesses and individuals to borrow money from other normal people. There are some great sites that will set you up with people in need of money. They’re all checked beforehand to make sure that they’ll actually pay you back, with a nice bit of interest on top.
You could burn through that £100 in a night and have a good time, but you’re much better off doing something sensible with it instead.  

Chiino
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