It’s an awesome feeling to watch your savings account grow as time passes, and as long as the figures are going up month after month, you feel like you’re making progress. While some savings is better than none, most people aren’t really maximizing the potential of the money in their account.
A wise investor looks to not only save money but also invest it so that otherwise stagnant funds will automatically appreciate in value.
There are so many ways to preserve and increase the value of a savings account that it simply doesn’t make sense to let the money sit there and depreciate. With that said, we sat down with Dmitriy Aksyonov, President of Global InterGold, to discuss the best options for increasing the value of the extra money you’re saving every month.
4 Simple Ways To Grow Your Wealth
#1. Investing In Precious Metals
“Holding roughly 10 to 50 percent of your savings in precious metals is one of the best ways to gain financial security, as it ensures that a significant portion of your wealth is protected from currency fluctuations and economic uncertainty,” said Dmitriy.
The average short-minded account holder doesn’t even think about how their money is being continually devalued by the effects of inflation. Storing some of your savings in the form of precious metals ensures that the money doesn’t lose value due to gradual depreciation.
#2. Storing Money In The Right Accounts
While most people store their savings in a standard savings account, the smarter move is to deposit it into a high-yield checking or savings account. You can also receive a higher return by storing the money in a CD ladder, which is one of the most reliable ways to increase the yield of your savings.
“Another good tip for those looking for the highest yielding accounts, check with your local credit unions, as they usually offer great terms to get more account holders in the door,” Dmitriy added.
#3. Scheduling More Automatic Deposits
One obvious yet commonly overlooked way to increase the value of your savings is to simply deposit more money into it on a regular basis. This might include scheduling more frequent automatic deposits, like once every week instead of once per month.
“Even though more automatic deposits will decrease the amount of cash available in your checking account, it’s a good way to enforce discipline in your spending habits and increase the size of your safety net over time,” noted Dmitriy.
#4. Re-Investing In Profitable Endeavors
While the funds in a savings account are typically supposed to be left alone and shouldn’t be used to finance a company on a whim, if you’ve already started to earn revenue through a separately funded endeavor that’s generating returns reliably, it may make sense to dip into your savings as an additional source of capital for the business.
As a general rule of thumb, it’s best to re-invest an amount equal to half the revenue being generated by the business.
In closing, all of the steps above are simple measures that can be made with a few hours of decision-making and account-opening. At the end of the day, you’ll feel better knowing that your savings are accumulating at the fastest rate possible.