Monday, July 15, 2019

How to Manage Your Savings to Grow Instead of Fall With Inflation



Saving money is always a wise idea. Unfortunately, simply putting your money away and leaving it alone won't actually save you anything - in fact, due to inflation, you'll lose money when it's in a savings account. If you're really looking to grow your savings, you should try one of the tactics below.

Look at Your Savings Interest Rate


The current interest rate in the United States is hovering around two percent. As such, the worst financial mistake you can make is to put your money in a savings account with a lower interest rate than two percent. 


Keeping some money back is advisable, though, so you'll need to make a compromise. Look for savings accounts with the highest possible interest rates - you won't find anything that matches inflation, but the closer you can get, the less you will lose.

Look at Real Estate


Investing in real estate is a common way to generate passive income. At the moment, growth is slowing a bit - but housing prices are still rising. The current growth rate of the real estate market is estimated to be around two and a half percent, or almost a full percentage point about the next year's estimated inflation rate. As such, investing in property seems to be a safe way to keep your money growing slowly but steadily.


Low Risk Investments


Putting money into your investment portfolio is also a useful way to save. If your goal is to simply keep your money safe, then you'll want to look solely at safe investments that have historically trended with more than two-percent growth. 




Though you're certainly not going to become a millionaire overnight with these investments, you'll slowly grow your savings and avoid losing money due to rising inflation.

Work with an Asset Management Company


Finally, you'll want to make sure you're working with professionals if you are dealing with complex assets. A good asset management company will help you to make sure that your assets appreciate in value and that you don't lose money due to rising prices. 


Asset management companies are useful when you're dealing with anything that has a complex market history or that requires a significant amount of hands-on interaction in order to grow in value.

Remember, your goal is to make sure that all of your investments beat inflation. Keep an eye on inflation rates and adjust accordingly. If you can stay ahead of the curve, you can rely on the money you've saved.


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