Looking for an effective way to grow your savings? There are all kinds of ways to invest your money to help it grow. Below are just five ways in which you can make a return on your savings.
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Shop Around For Savings Accounts
The least risky investment strategy is to put your money in a savings account. Unfortunately, interest rates on savings accounts aren’t very high at the moment - while you may earn some fund off your savings, in most cases it will only be a small amount.
By shopping around different banks, you can try to find the highest interest rates. Some of the highest interest savers may have conditions that you have to meet in order to earn interest each month - these conditions could include contributing a certain amount each month, not withdrawing any money and maintaining a minimum balance.
Always check these terms beforehand!
Receive Interest Via Peer-to-Peer Lending
Peer-to-peer lending involves giving your money out to an individual or company as a loan. They then pay back the money gradually with interest on top. You can find people to lend to using peer-to-peer lending sites.
These sites are regulated to ensure that you get back your money. In most cases, you’ll earn more interest than you would by putting your money in a savings account.
Invest Money Into Stocks
There’s a potential to make a lot of money by investing in the stock market. Many people assume that trading stocks are complex and expensive, but in fact it’s very easy nowadays due to trading apps (many of which don’t have fees and allow you to invest as little as $1).
You shouldn’t ever invest in just one stock - by investing in multiple stocks you can spread the risk (if one stock drops in value, you won’t have lost all your money).
There are lots of easy guides to investing in stocks that you can read online such as this one at Nerdwallet.
Give Forex Trading a Go
Forex trading involves converting your money into a foreign currency. By converting it into a currency that is rising in value and then converting it back again you can make a big profit.
There are trading platforms such as MetaTrader 5 that make forex trading simple. By doing your research and diversifying your investments, you can forex trading a fairly secure and profitable way of making a return on your savings.
Consider Crypto Trading
Investing in cryptocurrency is possibly the most risky form of investment listed here, but could ultimately make you the biggest return.
Cryptocurrencies are digital currencies - the most famous being Bitcoin. Since 2015, Bitcoin has increased in value by almost 70x. The potential for profit is huge, but cryptocurrencies can be very volatile and are still a relatively new form of investment.
As with other investments, you should diversify your portfolio and make sure that you’re using the right trading platforms (some charge higher fees than others).
Once you’ve converted your savings to cryptocurrency, you should also make sure to keep them somewhere secure (ideally a digital wallet).
Please save for later
There you have it, queens. How to make more money and live your best life. Which is your favorite? Let me know in the comments below. Love ya!