What are the best ways to grow your savings?

When it comes to money, most of us want the same thing: more of it. We’re all looking for ways to boost our bank account balances.

The most obvious option is to ask for a raise. Of course, that leaves you at the mercy of your boss, and you could find that you end up working longer hours and taking on more responsibilities to justify that extra pay.

There are, in fact, better ways to take control of your finances, ones that put you in the driving seat as you concentrate on making your money grow.

Whichever method you choose, be sure to track all your income and expenses and savings. Build a budget and monitor where your money goes, so you’re confident that everything is in order. After taking all your costs into account, you’ll be able to watch your residual income rise.

Here are 4 of the very best ways to grow your savings.

Real Estate rentals

Buying to rent is a popular way of establishing a regular additional income. Well-located properties in good condition can generate serious money, but if you’re looking to purchase your first rental property, there are various things you need to consider.

Analyze the changing demographics of the area you’re considering. If an area is seen as ‘up and coming’ it will likely attract young couples and families, driving up property values and rental prices. Also investigate the available amenities, as shops and schools are key factors in the appeal of an area. Also think about whether potential tenants are likely to be short-term or long-term residents. If the area is near a university, for example, you’ll probably need to find new people every year or two and carry out regular maintenance on the property.

Bank deposits

Bank deposits made to saving accounts are one of the simplest ways to make your money grow without any major effort.

However, the current low-rate economic environment means that saving accounts deliver minimal returns, and the amount you can deposit is usually capped.

If you pursue this low-risk, low-return option, you do need to confirm that the profits you will earn will be enough cover bank charges and tax.

Pension plans

A private pension is a long-term way to prepare for your retirement by paying an agreed amount per month into a fund. The company managing your pension invests the money on your behalf with the aim of providing you with a guaranteed income in your old age.

There are two main types: defined-benefit plans and defined-contribution plans. A defined benefit plan is one by which the amount you will receive upon retirement is known in advance. A defined contribution plan means the amount you will receive depends on the fund’s performance and the total value of the contributions you’ve made to it over the years.

Trading

Investing your money through online trading is probably the most exciting way to make your money grow. Of course, it isn’t without risk, and you need to use a reliable and regulated broker to avoid scams and execute a profitable trading strategy.

Almahfaza is a great choice, as it is a regulated broker that offers premium services and secure trading conditions to its traders, wherever they are.

With Almahfaza, you can choose the most popular financial asset classes – Forex, commodities, stocks, indices or ETFs – and trade them on fast, robust, and efficient trading platforms accessible via web or mobile.

Almahfaza is a broker that works with you and for you to provide the best trading experience possible. For instance, it is possible for Muslim traders to invest with Almahfaza, as it offers an Islamic account that respects the Sharia.