What’s the best way to get the most out of money?

SJE89

What’s the best way of keeping money safe and while ensuring getting the most from it that doesn’t pose a risk of losing it?
If kept in savings accounts, while covered by FSCS, it’s earning little interest, and reducing in real terms value due to inflation.

El_Torro

If you if you want to beat inflation over the long term (10 years plus) then historically investing in the stock market will do this. No guarantees though, and the value of your investment will go up and down over that period.

Other ways include buying a winning lottery ticket or starting a successful business. Only problem is we don’t know how those things will pan out before we do them.

Short answer: There is no risk free way to consistently beat inflation. 

SJE89

El_Torro said:

If you if you want to beat inflation over the long term (10 years plus) then historically investing in the stock market will do this. No guarantees though, and the value of your investment will go up and down over that period.

Other ways include buying a winning lottery ticket or starting a successful business. Only problem is we don’t know how those things will pan out before we do them.

Short answer: There is no risk free way to consistently beat inflation. 

Starting a business is the first idea that I have had about this and have thought about it a long time. Trouble is as you say I don’t know how this would pan out and could fail…

Albermarle

What’s the best way of keeping money safe and while ensuring getting the most from it that doesn’t pose a risk of losing it?

Getting a better return than safe savings without taking a risk, is simply not possible. End of story.

steampowered

If you look at the long term - 10 years plus - putting your money into a stock market index fund is about the safest thing you can do.

People say "it can go up or down" but that's only really true when you are looking at shorter time periods. There are no instances since at least the second world war where a balanced stock market investment would have lost money when looking at 15-20years plus. 

MEM62

SJE89 said:

What’s the best way of keeping money safe and while ensuring getting the most from it that doesn’t pose a risk of losing it?

You can't have your cake and eat it.  If you want security the returns will be low.  If you want better returns you have to accept some risk.  Long term the stock market should be a good option.

SJE89 said:

El_Torro said:

If you if you want to beat inflation over the long term (10 years plus) then historically investing in the stock market will do this. No guarantees though, and the value of your investment will go up and down over that period.

Other ways include buying a winning lottery ticket or starting a successful business. Only problem is we don’t know how those things will pan out before we do them.

Short answer: There is no risk free way to consistently beat inflation. 

Starting a business is the first idea that I have had about this and have thought about it a long time. Trouble is as you say I don’t know how this would pan out and could fail…

1 in 5 Startups fail so even that has an element of risk.  In my opinion things often go wrong in the planning stage and it is not uncommon to under-estimate costs and over estimate revenue.    

Albermarle

1 in 5 Startups fail so even that has an element of risk.  In my opinion things often go wrong in the planning stage and it is not uncommon to under-estimate costs and over estimate revenue.    

Also to not have sufficient working capital and end up with a cash flow crisis.

Millyonare

The higher the return, the greater the risk to your cash.

DannyCarey

VWRL, probably. 

Mr.Generous

Property, gold and the stock exchange all show a history of being safe investments.

Albermarle

Mr.Generous said:

Property, gold and the stock exchange all show a history of being safe investments.

In the long term if you look at the markets as a whole then yes you are largely right.
However very easy to get burned with all three, if wrong decisions are made. Especially in the short/medium term.