How to increase savings: 7 strategies with different risk levels

If you keep your savings in a safe, they depreciate. So make them work to increase savings.

1. Savings account

You transfer money to a perpetual account, and the bank monthly charges you a percentage on the amount while you use its services. However, there are no restrictions on the movement of funds. But the percentage is usually low.

  • Period of profit: from one month.
  • Risks: virtually none, if you contact a trusted bank and do not give access data to online banking to outsiders.

2. Deposit

You put money in the bank for a fixed period and get interest for it. Pay attention to the ratio of terms and percent for a floating rate on a deposit. It sometimes happens that, for example, to put money in a bank for a year is more profitable than for six months, but less profitable than for one and a half.

Income from the deposit, depending on the terms of the contract, can be cashed out on a monthly basis or added to the principal amount, so that later you can receive all the money at the same time. Pay attention to the presence of capitalization: in this case, interest is added to the principal amount on a monthly basis, and then interest is also accrued on them.

  • Period of profit: from one month, but it is more profitable to choose a longer period.
  • Risks: virtually none, if you contact a trusted bank and do not give access data to online banking to outsiders.

3. Education

A risky way in which you first have to say goodbye to savings in the name of a potential bright future. Before investing in education, it is worth weighing the pros and cons, make a list of posts that you can apply for, find out the average salary for them.

If all the calculations look optimistic, it’s worth a try. Then there is a chance to quickly return the accumulations and begin to increase them.

  • Period of profit: from several months to several years.
  • Risks: high if you are not ready to invest anything but money, and have poorly studied the professional market.

4. Real estate under construction

Buying an apartment at the excavation stage can increase savings by 50–70%. It is such a return, according to what profitability can bring investments in new buildings, have investments in a new building.

But profitable investments are risky investments, therefore it is necessary to take a responsible approach to the choice of a developer so as not to replenish the ranks of deceived investors. Also pay attention to the infrastructure of the area: if the place is poor, there is a chance of not finding a buyer.

  • Period of profit: several years.
  • Risks: high if you contact an unapproved developer, and below average if you choose a bona fide company.

5. Property for rent

Be prepared for the fact that this is a very long-term investment. You buy an apartment and with a rent payment without utilities, you return the savings only after 8 years.But at the same time you own an apartment. Real estate has steadily increased in price.

  • Period of profit: the first money – in a month, the payback – in a few years, but you will have an apartment that you can sell.
  • Risks: below average, if you carefully select the property and check tenants.

6. Federal loan bonds

Bonds are a fixed income debt instrument. In the case of federal loan bonds, the state takes a loan from you, then returns the money invested and thanks you with interest. Thebondscan be purchased from a broker. Their maturity and yield vary, so details need to be specified for each bond issue specifically.

  • Period of profit: depending on the term of the bond.
  • Risks: virtually none if you do not expect bankruptcy of the state.

7. Stock exchange fund

By investing in a stock exchange fund, you acquire a share of the set of shares of different companies belonging to it. This fully complies with the requirement for different baskets, but makes the task easier for the investor, since they offer you an already formed package.

The more companies in the ETF fund’s portfolio, the more likely it is that investments will bring at least a small but stable income.

  • Period of profit: depending on the policy of the fund.
  • Risks: the larger the portfolio, the less risk.

Comments are closed.