In the real world, people like to make a distinction between saving, investment, and spending. When you save money, you tell yourself, you’re giving up consumption now so that you have more of it in the future.
It’s a good idea – and it always makes sense to have a rainy day fund. But that’s not what’s actually happening when “you put money away” in a bank account. Instead, the bank is taking that money, using it to increase its reserve ratio, and then lending it out to other people, making a nice chunk of money for itself in the process.
Since you’re giving up the use of your money for a period, you’d like to be rewarded for it. But banks seem to be refusing to do that at the moment because of low interest rates. And that’s hurting consumers even more.
The best way to save money is actually to invest it in something else. Just holding cash doesn’t produce any value. And you actually lose wealth over time because of inflation.
Invest In The Stock Market
Do you have a brokerage app on your phone? If so, you might want to consider investing in the stock market.
Don’t worry: it’s not complicated. Usually, you can get away with buying just one or two products.
Don’t buy individual stocks (unless you’re an expert). Instead, just buy ETFs linked to the whole market. This way, you can easily diversify your portfolio over time and ride the market upwards as it rises).
Buy Crypto
Sick of inflation eating away at the value of your savings? Why not just invest in cryptocurrencies?
Learning how to buy cryptocurrencies is easy these days, thanks to exchanges. And often, you can simply order them through your app, without having to jump through any hoops. You just load your account with regular cash and then start buying. It’s that simple.
Invest in Gold
Gold can be a pretty reliable investment. While the price of gold does fluctuate every few years, you’re never going to make a large loss with gold – this precious metal will always be valuable and therefore is a pretty safe asset to invest in.
There are so many different ways to invest in gold from gold coins to gold ETFs. There are even retirement accounts such as a gold IRA rollover that can convert some of your savings into gold. Whatever method you choose, make sure to go through a trusted source – don’t be duped into buying fake gold off a stranger online. On top of this, make sure to keep your gold somewhere secure.
Invest In Private Equity
Investing in private equity isn’t just for millionaires. It’s something that the average person can do too. You just need to find the right channels.
For instance, companies looking to raise money will often advertise via concierge service networks, putting out feelers to gauge interest. These networks will then pass on information to their clients about the nature of the business and how much money it’s going to make. As with any venture capital situation, it’s high-risk, but also high-reward.
Put Cash Into Real Estate
Holding cash leaves you at the mercy of inflation – something that is probably going to pick up substantially over the coming weeks and months. But property prices tend to follow inflation up and down, protecting your wealth against government action.
Putting money into real estate is easy. If you already own a property, it just means paying off a little more of your mortgage every month, instead of putting money into savings products.
If you don’t own a property, you can purchase financial instruments linked to properties. These give you a share in the profits from commercial or residential rental income.