The best way to invest £50 per month

In this brief guide, we are going to cover the best way to invest £50 per month. £50 per month can go a long way to increase your financial wellbeing.

With costs rising in ost big UK cities and salaries staying relatively the same, finding the best way to utilize the little money we can save will be helpful in order to ensure we have a rainy savings fund for financial emergencies.

Best way to invest £50 per month

The best way to invest £50 per month will be to find a suitable savings vehicle where the returns are good enough. This could be investing in something which gives you the opportunity to make more money or investing in a savings or investment account.

Where you should invest your £50 a month will depend entirely on your attitude to risk but below are a few options.

Invest in your bank’s savings account

You could choose to invest your £50 a month in your bank’s savings account but it is very likely that your bank accounts savings rate will not be as competitive as those being paid by other institutions.

Invest in education 

One of the best ways to invest £50 a month could be to invest £50 into training schemes which could allow you to go into a more profitable career such as investing into taking the education or buying the books needed to become an accountant or a financial advisor if you have motivation for these jobs.

Peer to peer loans

Another one of the best ways to invest £50 per month will be to invest it in peer to peer loans. Peer-to-peer loans have been reasonably safe in the UK although they are not backed by the financial services compensation scheme which means any money lost due to mismanagement or misselling cannot be recovered.

Most Peer to peer loans offer their own safeguard funds which will payout in the case a borrower did not repay the loan that they took out with the peer to peer company.

With peer to peer loans, you could fund the purchase of houses, cars or just provide personal loans to borrowers at a reasonable rate.

Pension

A pension could be seen as one of the best ways to invest £50 a month as most pension funds are incredibly diverse and have performed well over the past few years. You should speak with a financial adviser before deciding on which pension fund you want to invest in.

Innovative ISAs

Innovative ISAs could also be the best way to invest£50 per month as you could buy shares of companies, shares of houses and exposes yourself to investment assets which you would have typically needed much more money for e.g buy to let investments.

As with the peer to peer loans, innovative ISA investments do not have any financial services compensation scheme cover. This means that if any of your money is lost due to your investments failing then you will not be able to claim any money back if you were mis-sold or if your money was managed.

Bitcoin

Bitcoin could be one of the best ways to invest £50 a month but it may not be a sustainable way if you don’t know much about bitcoin or understand how to time the market.

Bitcoin has generated enormous returns over the past 3 years but can also be seen as a very volatile asset to carry.

ETFs or index funds

ETFs or index funds could also be a good way to invest £50 a month. ETFs such as theS&P500 has outperformed the stock markets for the past30 years in some cases.

ETFs and index funds are also incredibly diverse and allow you to expose yourself to invest in assets which you will usually not have been able to access before.

Seeking independent financial advice

Regardless of whether you want to invest £10 per month or £50 per month you should seek independent financial advice.

In this brief guide, we discussed the best way to invest £50 per month. If you have any questions or comments please let us know.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.