£20,000 in savings? Here’s a strategy to try turning that into a £60,000 second income
Unless we have a lot of money, the strategy for earning a second income typically starts by building wealth.
So if someone has £20,000 set aside, one of the most effective ways to put that money to work is by opening a Stocks and Shares ISA.
This type of account allows investments to grow free from capital gains and dividend tax, meaning more of the returns stay invested over the long term.
Once the account is open, the next step is consistency. The investor may wish to drip feed that £20,000 into investments before making regular contributions from their earnings.
By contributing regularly, even in relatively small amounts, investors benefit from pound-cost averaging — buying shares…
