5 Ways to Make Your Money Grow (Instead of Losing Value at Your Bank)
It’s incredibly important to keep money in the bank for your everyday expenses, but it’s also incredibly important to make your money grow. You’ll need to keep feeding your bank account with money you earned the hard way in order to keep it full, but exploring other opportunities for building wealth is what will ultimately provide you with the financial freedom you desire. Some methods, like investing, come with risk. But well-calculated risks have the potential to give you healthy rewards. Keep a watchful eye and wait patiently as returns keep rolling in.
- Switch to a High-Interest Savings Account
If you’re totally risk averse, you always have the option of switching to a high-interest savings account. Some banks will offer up to 3% in exchange for storing your money, provided you don’t make too many withdrawals and you keep your minimum high. This method is slow, but for people who would rather squirrel away money and forget about it until a rainy day comes, it’s a wise choice. Put your money away, forget about it and let it grow a little bit with each passing year. You won’t be rich, but you’ll have a greater level of financial security.
- Start Trading
Trading and investing in stocks was once thought of as something that only rich people with expensive personal accountants did. The environment around trading has become far more casual. The internet and apps have made it easier than ever to trade right from your couch. There are forums to discuss investments and multiple free resources online that you can use to teach yourself to trade. Start off small and slowly increase the amount of money you’re using until you feel comfortable with your ability to trade safely and wisely.
- Choose Tangible Investments
Some people prefer to invest in things they can see – especially things that have the potential to go up in value. This is why land and real estate are often regarded as the best tangible investments. Purchasing real estate in a developing area may produce good long-term returns. Since land is a finite resource, purchasing that land and holding onto it until someone wants to build there can also be lucrative. You can request a lot more than you initially paid for it, especially if you’ve periodically maintained that land.
- Fund a Venture
If you already have excellent business sense but you don’t have the time or the energy to start your own venture, funding someone else’s might be an opportunity too great to resist. Investing in startups is a huge gamble. It’s less of a gamble if you’re investing in the expansion of a successful business with a great forecast, or a second project managed by someone who has already proven themselves to be a capable and competent entrepreneur. Start by researching the individual or startup that’s seeking funding. If all their paperwork is in order (including their business plan that details how they intend to use your investment), consider how much you’re willing to provide and work with them to create terms. If they meet your expectations and you feel comfortable working with them, you can slowly send more money their way. The better they do, the better you’ll do.
- Start a Business
Companies only have one CEO, and if you’d like to have the same kind of salary, you’re probably trying to put yourself in that position. It’s almost impossible to work your way up from the filing room to the top seat at the table, but that’s not the only way to the top. You can create an internet-based business to keep overhead costs low, allowing yourself room to grow into the real world. By starting your own business, you’re already at that top position. All you need to do is fill the positions underneath you to build your way up. Invest money into your future success by starting your own business, even if you’re only hiring independent contractors or working as the head of an agency.
Anyone who is willing to put in the work can see their wealth grow further than they ever thought possible. If you want more out of life, sometimes you need to use initiative to go out and get it. Turn a little money into a lot of money simply by knowing what to do with it.
Laura Martins is a financial blogger and a project manager working at RateCity – a financial comparison website helping people make smart money decisions. Laura is interested in reliable ways of creating passive income, enjoys good literature and dislikes unproductive meetings.