Traditionally, people saved money by depositing cash on a regular basis to a bank account. This is not the only way to save money in modern times. There are other non-traditional methods that allow you to increase your wealth without the dependence on cash. Here are several unconventional methods everyone should consider when saving:
Saving Money in Fixed Deposits
There’s an alternative method to save money in bank accounts and enjoy a higher interest rate at the same time. Fixed deposits are similar to savings accounts. Except, as the name suggests, you only deposit once. For example, you can put $1,000 in a fixed deposit account at an interest rate the bank calculates. Your fixed deposit is granted for a set period of time, like 12 months or 2 years. Once the fixed period ends, you can get your money back plus the interest earned. Then you can choose to renew the fixed deposit or do something else with the money. Fixed deposits generally have higher interest rates than savings accounts (but not as high as certain investments). If you don’t trust yourself to avoid withdrawing money from a savings account unnecessarily, the fixed deposit is a good option to go with.
Buying Gold and Silver
It’s easy to think that buying gold and silver as something only the super-rich do. It’s not. Most regular savers, investors and retirees now buy physical gold and silver in coins and bars. Precious metals can hedge your money in case there’s another economic downturn. Think of it as a way to save your money from a devastating currency devaluation caused by another recession. Also, gold coins can be used to barter, especially in markets where currency is uncertain. You can buy gold bars for future safekeeping, or more easily do roll overs 401ks to silver. You can add approved precious metal coins to IRAs too.
Investing in ETFs and Mutual Funds
Exchange Traded Funds (ETFs) and mutual funds are a collection of stock, bond and securities portfolios that the general public can invest in. The money in these funds comes from a vast number of investors. Essentially, these funds are already made investment portfolios with diverse securities. So you can readily invest without incurring the risks associated with buying stocks individually. A good ETF is a very low-risk way to invest money and save money for retirement and future activities like buying property.
Government bonds are considered a largely low-risk way to invest your money and see it multiply over a course of 5 to 10 years, or even more. As long as the government you buy bonds from remains intact, you will see a return for your investment. Buy government bonds from stable countries, like Germany, Japan, or Canada. You will have to follow political news to make sure you are not buying bonds from a country that’s about to disintegrate or go bankrupt. However, buying short-term bonds from a developed country is a good way to see returns for your cash.
Also, you can save money by investing in property. Property is wealth that you can later liquidate and convert into cash. Plus, if you have an extra house or a room, you can always rent and earn extra cash in the process as well.