Money comes and goes. So, there are times when you need more of it, yet you’re strapped for cash. Unfortunately, you don’t have much choice but to try and increase your earning power. Some people work overtime, others opt for a side hustle, yet there is an easier option – selling assets. Although assets are valuable, they don’t always add value. And, if they do, you make the transition after a while. Still, selling up for the maximum amount of profit isn’t a walk in the park if you are new to the game.
With that in mind, here are four core principles to help you limit mistakes.
Get A Free Quote
Your car can reduce your expenses if you’re willing to sell it or trade it in for another, cheaper model. However, part of the problem is that you never know how much you’re going to get from a sale or part-exchange. The good news is that the likes of the Affordable Cars Group provides sellers with an up to date quote with no obligation to buy. Plus, it’s free. Therefore, you can analyse whether the offer is a good one before you sign on the dotted line. If it isn’t, there are auctions or private sales that can be more lucrative.
Not every asset is going to be essential. The car is, but your old CD and record collection in the garage isn’t, and it has more than sentimental value. Records, in particular, are valuable because people prefer the sound and the artwork. This John Manship post should help you repair any that are cracked, warped, or need a bit of elbow grease. Of course, used clothes go for hefty prices, too, and you can use eBay to your advantage. Finally, unused jewellery is worth appraising or melting down for the metals inside.
And New Assets
There are tax implications for olds assets or belongings that you have had for more than a year that turn a profit. It can get complicated, but the main thing to remember is that anything you’ve owned for a year or less is exempt from Capital Gains Tax. Therefore, the amount you receive is larger because none of it goes to HMRC. If possible, then, it’s better to sell new items or services to avoid a considerable chunk being taken away.
Put It Into Premium Bonds
Once you sell it, you need a place to put it where it will be safe and won’t incur fees. As a rule, the most suitable option is to put the money into Premiums Bonds, and there are two reasons as to why. Firstly, PBs are tax-free (hip, hip, hooray!). Secondly, there is a chance of earning more by winning a prize in the monthly draw. You can make money from the interest rate of a savings account, yet 1% isn’t going to earn you very much. Premium Bonds, even if it only averages out at £20 per month, is much higher than a traditional ISA.
Hopefully, you never have to sell assets to increase your budget. If you do, however, these tips will come in handy.