How to multiply your savings: 10 strategies with different levels of risk

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

If you store your savings under a mattress, they are worthless. So make them work.

1. Savings account

You transfer money to an unlimited account, and the bank charges you a monthly interest on it while you use its services. At the same time, there are no restrictions on the movement of funds. But the percentage is usually low.

Profit earning period: from one month.

Risks: practically none, if you contact a trusted bank and do not give access data to online banking to outsiders.

2. Deposit

You deposit money in the bank for a fixed period and receive interest on it. Pay attention to the ratio of terms and interest at a floating rate on the deposit. Sometimes it happens that, for example, putting money in the bank for a year is more profitable than for six months, but less profitable than for one and a half.

The income from the deposit, depending on the terms of the agreement, can be cashed out monthly or added to the principal amount in order to receive all the money at the same time. Pay attention to the presence of capitalization: in this case, interest is added to the principal amount on a monthly basis, and then interest is also charged on them.

If there is a lot of savings, spread the amount across different banks so that each deposit has no more than 1.4 million - this is the amount that is insured in case of bankruptcy of a financial institution.

Profit earning period:from one month, but it is more profitable to choose a longer period.

Risks:practically none, if you contact a trusted bank and do not give access data to online banking to outsiders.

3. Education

A risky way in which you first have to say goodbye to savings in the name of a potential bright future. Before investing in education, it is worth weighing the pros and cons, making a list of positions that you can apply for, and finding out the average salary for them.

If all the calculations look optimistic, it's worth giving it a try. But only if you are ready to plow. Then there is a chance to quickly return the savings and start increasing them.

Profit earning period:from several months to several years.

Risks: high, if you are not ready to invest anything but money, and you have not studied the professional market well.

4. Property under construction

Buying an apartment at the pit stage can increase savings by 50–70%. This is exactly the rate of return, according to RBC, that investments in a new building have.

But profitable investments are risky investments, so it is necessary to take a responsible approach to the choice of a developer so as not to join the ranks of defrauded real estate investors. Pay also attention to the infrastructure of the area: if the place is bad, there is a chance that you will not find a buyer.

Profit earning period: some years.

Risks: high if you contact an unverified developer, and below average if you choose a bona fide company.

5. Property for rent

Be prepared for this to be a very long term investment. You buy an apartment for 2 million and with a rent without utilities of 20 thousand rubles, return the savings only after 8 years.

But at the same time, you own an apartment. True, Rosstat data say that over the past three years, the cost of all types of apartments, with the exception of elite ones, has been declining. Prior to this, real estate was growing steadily in value.

Profit earning period: the first money - in a month, payback - in a few years, but you will have an apartment that can be sold.

Risks: below average if you carefully select your property and check tenants.

6. Promotions

When investing in stocks, it makes sense not to put all your eggs in one basket and buy securities of several companies. This makes it possible to at least preserve savings if the value of part of the securities drops sharply.

Please note that dividends on common shares may not be paid. Pay attention to the more expensive preferred shares, which take precedence over the distribution of profits.

When choosing a broker who will represent you on the stock exchange, check that he has a state license from the Central Bank (until 2013 - from the Federal Service for Financial Markets), and his company is registered in Russia.

Profit earning period:in a year - for dividends, at any time - after the sale.

Risks:high, if you do not understand the issue.

7. Bonds of the federal loan

Bonds are a fixed income debt instrument. In the case of federal loan bonds (OFZ), the state borrows from you, then returns the money invested and thanks you with interest. Market OFZs can be purchased from a broker. Their term and yield differ, so the details must be specified for each bond issue specifically.

In 2017, the Ministry of Finance issued "people's" bonds, which can be bought at VTB and Sberbank, but can only be sold to them. The profitability is declared at the level of 8.5% per annum on average for 3 years. For three-year deposits, the weighted average rate is 4.85%.

Profit earning period:depending on the term of the bond.

Risks: practically none, unless you expect the state to go bankrupt.

8. Individual investment account

Individual investment accounts (IIA) were introduced in 2015 as a tool to attract Russians to long-term investment in securities. You must credit it with money in rubles, but no more than a million a year, and you can invest in stocks and bonds.

Everything is clear with them, but IIS allows you to receive income, even if you just keep money on it without moving. You can apply for a tax deduction of up to 52 thousand rubles annually.

Terms of making a profit: from three years; if you pick up the money earlier, the tax deduction will have to be refunded.

Risks: higher than that of the deposit, with a sufficiently low yield, since the investment account is not insured by the Deposit Insurance Agency.

9. ETF fund

By investing in an exchange-traded fund, you acquire a share of the set of shares belonging to it in different companies. This is quite consistent with the requirement for different baskets, but makes it easier for the investor, since you are offered an already formed package.

The more companies in the ETF portfolio, the more chances that investments will bring at least a small but stable income.

Profit earning period: depending on the policy of the fund.

Risks: the larger the portfolio, the lower the risks.

10. Someone else's business

Those who like to take risks and trust their intuition can invest in a startup or innovative technology. If the project succeeds, the investment will return in a larger amount.

But the risks are very high, most companies go bust. Therefore, it is not worth investing the last or earned by very hard work. Also, don't forget that finance loves rationality. You will have to shove through a large amount of information in order to understand which industry is trending and has a chance of success, and which initially is not worth attention.

Profit earning period: some years.

Risks: high.