Are you looking to grow your money?
If so, then you are not alone. Even if you have a decent job and you are earning a good figure, I bet still it won’t satisfy you. You want more.
It would be great to see your money grow. You would want to secure your family financially. You would want to have a stress-free retirement life. Certainly, you would want to provide the best for your kids.
Thus, everyone wants to see their money keep growing. But before going to the ‘how to’ part. Let’s me ask you what’s your purpose to grow your money?
Do you want to get rice? Do you want to drive an Audi? Do you want to have a luxury life?
Or do you want a stable, reliable and a stress-free life with your family?
Why do people want to double their money, it’s their choice? Everyone has a different financial story and has a different approach to make their money grow.
There are a few legal ways to grow your money consistently. What are they? How will you invest? Where should keep your money to get the high return? These are the few things that I will share in this article.
How to Grow Your Money—7 Simple Ways
Stick to the Budget
When it comes to money management, you should really clearly understand your finances. The fundamental rule of saving and growing your money to double is to create a budget and stick to it.
When you make a budget, it helps you to ensure about your financial status. Now, how exactly does it help to grow your money?
When you budget, it lets you track your weekly and monthly expenses. You get a clear picture of how much money you have to save. By tracking your expenses, you could make simple changes in your budget.
Once you stop overspending, slowly you will see your savings are growing and it will build your wealth over-time.
Start a side hustle
Side hustle has become a thing today. People have enjoyed side hustles as they are doing what they love and earning money too.
The internet has opened up a world of opportunities for people to make money online. If you have the talent and have the right platform, you can earn more than your regular income.
Side hustles can be anything. It can be painting, freelance coding, writing, photography, consulting, driving a cab, tutoring, and so on.
You can earn some extra cash by providing services that you are good at. The best thing about side hustle is you don’t have to work full time. You can work whenever you want at your comfort level.
For example, you are working at an IT firm full-time and on weekend you are tutoring kids. You can easily earn some handful of extra cash by the end of each month and save them.
There are no limits to how much you can earn from a side hustle. If it is something you are enjoying and giving you an outstanding figure every month, you can keep on continue by adding monetary benefits into your account.
Financial literacy and discipline
What is financial literacy?
It is the ability to understand financial information and use them enhancing your financial skills and decisions. It is crucial to have financial literacy as it helps you take the right financial decisions and money management habits.
You don’t need a degree to attain financial literacy. There are an endless number of books and materials available on money management, budgeting, personal finance, stock and so on. Read them and gain knowledge.
Educate yourself on them will let you expand your financial status.
Learn how to budget the right way, how to plan your retirement, handling debt and credit, how to take your money to the next level by investing.
If you want to see your money grow, you have to invest your time in reading and accessing financial stuffs.
By discipline, I meant consistency and the thrust to grow your money.
Invest in different streams
As an investor, you always look for opportunities to grow your money. You can’t put all your money in one place. To let grow your money, diversify your investments into different streams.
This is because if one stream experiences loss, you still have the others where you can pull back your money.
For example, you keep an amount separate for investment from your salary and spread them out. You can invest some money in real estate. You can put some money in stock, mutual funds and corporate bonds for high return.
When you are investing your money, ensure you have the full knowledge of what you are doing. By diversifying your investment, you can minimize the impact of any one-time failing.
Note: Investments of any sort are always subjected to risks. Invest only if you have the appetite to digest the fall.
Starting early is one of the best ways to grow your money. It gives you ample of time to compound your return. When you save and investing early, even if you take poor financial decision you will have the time to learn from your mistakes and re-evaluate your decisions.
The primary reason why experts suggest starting early is because the more time you give your money, the more you can save consistently.
Let me take an example here. Sam is 25 years-old, working as a marketing manager who earns 60k a month. He has no debt. He saves 25% and invests 15% of his salary.
As his salary grows, his expenses grow too, but he is consistently investing for years. By the time he will reach his retirement age, the compound return will be something that benefits him for his later ages.
When you are young, as an investor, you can either take an active or passive approach towards saving your money. You will have the time to try different ways of saving methods and investing in different places. Whichever gives you the best result, you can switch to them and be consistent.
Wealth can not be created in a short time-span. Those who are suggesting on YouTube don’t be a fool to believe it.
To be able to grow your money it requires a constant monitoring of what and how you are doing.
Let’s take another example. You are young and can take risks. You have invested and build a high-risk portfolio to double your money. As you know, how the stock market is unpredictable and fluctuates quickly.
Even if you study the market closely, there is no guarantee it won’t betray you.
Suppose you lost your investment today, since you have the time, you can recover the money fast by being more careful. You can easily switch your high-risk portfolio into a conservative and once you accumulate the lost money, you can start with a different approach.
Managing debt is a necessary task for anyone looking to grow their wealth consistently. While most people view debt as a burden, it can also be an opportunity to increase your income over time.
By taking on reasonable amounts of debt and making timely payments, you can build up a positive credit history that will help raise your credit score. As your score improves, you’ll qualify for better interest rates on loans and credit cards—which means more money in your pocket.
Paying off high-interest debt should be a priority when growing your money. When you borrow smartly—investing in assets or education that generate long-term returns—you’re actually growing your net worth faster than if you had saved slowly over many years. Of course, this requires discipline and financial literacy: knowing which debts to take on, how much risk to tolerate, and when it makes sense to pay down outstanding balances versus investing in new opportunities.
If done correctly and consistently over an extended period╌of time with proper risk assessment, managing your debts gives a better chance of achieving sustainable wealth creation than relying solely on savings-based strategies.
People often underestimate the role that insurance can play in their financial lives. Although insurance can be a significant expense. But do you know it can also be a powerful tool for growing your wealth?
Whether you take a health insurance, life insurance or car insurance, every insurance will protect you financially during an unforeseen event.
By investing in insurance, you will get the benefit of the cash value growth potential and other add-on benefits that each insurance company offer.
It is essential in the current rising economy to keep yourself financially protected.
Insurance can provide you with various life cover options.
For example, if you invest your money in a health insurance, if something worst happens to you it will cover the maximum medical cost. You wouldn’t have to pay for your savings.
Similarly, if you invest in a car insurance, in case of an emergency, it will help you cover with your car damage expenses. Certainly, you have to pay yearly a considerable amount but it will protect you in times of vehicle emergency.
These are some general ways to grow your money. Let’s find out how will you grow your money if you want to keep all your savings in the bank.
How to grow your money in the bank
Keeping your hard-earned money in the bank is the safest place. If you are a beginner and don’t have much knowledge about handling finances, a bank is the only place where you can trust.
However, the return is not that high compared to investing in stocks or mutual fund. But we can also not ignore the fact that, unlike other platforms, bank is risk free.
Now, coming to how to grow your money in the bank?
The first step to growing your money is to find a bank that offers high interest rate on savings account. There are two types of banks – public and private.
Do your research, visit different banks and get to a clear understanding of which bank offers what.
Open a savings account where you will get a higher return than the average. Be consistent with your savings. Set a target and put a part of your income straight into your savings account each month.
The best way is to automate your savings account.
Choose a bank that has an excellent history and reputation. Study their data and invest in ‘Corporate FD.’ They give better return than a savings account.
Take advantage of the credit card that your bank offer to you.
A bank generates a considerable revenue through credit cards to their customer. They can charge you a late fee if you fail to pay the credit card bill on time. If you are in a credit card debt, the bank can extract money from your account.
They also do big business in the loan department like home loan, car loan and so on.
But how can a credit card can help you save money?
Note: Limit the use of credit card on daily shopping. Find out where you can earn cashback if you pay via credit card.
For example, when I bought an iPhone 13, I used my credit card to pay, and got INR 5000 cashback within 7 days.
Companies offer benefits on credit card to lure the customer. If you are reasonable and smart enough to know how and when to use a credit card, it will never trouble you.
Now, coming to the last part where you can grow your money exponentially.
Invest your money
How to grow your money by investing
Mutual funds are a popular way to invest your money. It is an investment scheme where investors put their money either in a lump-sum or by SIP (Systematic Investment Plan) in different mutual fund houses.
Your money will be then get invested in different assets, like stocks, bonds and other securities.
If you are looking to grow your money and you have time, investing in mutual funds is a great option. It will let you diversify your investment portfolio. You can choose a high-risk investment portfolio to low-risk. The options are many.
Mutual funds are often seen as a reliable option to invest especially, beginners are more inclined towards it.
However, there are chances you could lose your money here too. Before investing, ensure with which mutual fund house you are investing.
Take time and study their performance history of return. How has it performed in the past? Fund’s prospectus and the level of risks associated with the fund.
Assess everything before you invest. Once it matches with your goal, you can start long-term investment and grow your money steadily.
There are several mutual fund apps available in the market that are easy to navigate and track your money.
Invest in real estate
Real estate investment can be profitable. It is one of the oldest and most popular ways to grow your money. The potential for capital appreciation is high in real estate.
If you invest in the right property, it can double your return. Either you buy a plot, a flat or invest in commercial shops, the benefit will always be yours.
There are two ways to earn your return on your investment: either you sell out your property and get a lump-sum amount. Or you can earn through rental income.
As it is a physical asset, people consider real estate investment secure.
There are a few things to keep in mind before you invest in real estate. Find a good property that will be in demand when you aim to sell.
Research well about the locality, prospect of development in the area, and estimated appreciation over time.
If you are not careful enough about your choices, investing in a real estate can live you poor.
Be wise and look for real estate opportunities to grow your money.
Do you know you can also save money and grow your wealth through tax-free investment? We pay taxes on everything. But there are certain schemes where you don’ have to pay your taxes.
Tax-efficient investing is a powerful strategy that can help you achieve consistent growth in your investment portfolio. By making smart investment decisions and managing your portfolio in a way that minimizes tax liabilities, you can maximize your returns and keep more of what you earn. There are several tax-efficient investment strategies to consider, such as investing in tax-advantaged accounts like 401(k)s, IRAs and diversifying your portfolio to maximize after-tax returns.
These plans are government ruled plans and if you invest in them, your money will remain 100% tax-free.
For example, the best tax saving schemes and plans in India are:
If you invest in any of the plan, your money will flourish.
Every country has different government tax-free plans where you can grow your money.
Tax-Free Investments in USA
Have you started investing in a retirement plan? If you haven’t yet you are missing out a huge opportunity to grow your money and secure your old age.
Retirement planning is a crucial aspect of financial management that helps individuals grow their money consistently. It involves creating a retirement income plan to ensure that one has sufficient funds to cover expenses during the golden years of life.
It’s all about setting realistic goals and making smart investments that align with those goals. This might mean diversifying your portfolio, and taking advantage of tax-advantaged retirement accounts. Smart spending habits, like reducing expenses or avoiding debt, are vital elements for successful Retirement Planning. Setting up automatic contributions towards various savings accounts and maximizing employer-match contributions not only helps maximize returns but also makes sure savings continue regularly.
You can invest in 401 (k) if you are living in US. In India, you can start investing in a National Pension Scheme.
Stock Market Investment
Stock investment can be a great way to grow your money. But it is important that you understand how it works. Take your time before you jump into investing in the stock market.
If you do not have any knowledge, learn what stocks are? How do they work? How to invest and grow your money? What kind of stocks you can invest in?
Know that there are risks involved with investing. Learn the basics and start investing when you are ready. Choose the right investment method
Note: Invest only after knowing everything about the stock market.
If you do the right way, the stock market can make you rich.
Dividend paying stocks
Some feel dividend-paying stocks are great because they provide you with a regular stream of income. By reinvesting the dividend you are earning, you can compound your returns and let your money grow steadily.
However, not all dividend-paying stocks are so great. Invest in trustworthy companies that have a good business history.
Thus, it is also a way to grow your money over the time.
Invest in a profitable business
Investing in a profitable business is one of the best ways to grow your money. If the business is already successful, you can make a lot of money without having to put in a lot of work.
However, not all businesses are profitable. There are some niche business where investing brings you a better return.
For example, if you think about opening a business of selling baby products online, offline, it can be a good investment. The demand for baby products is evergreen.
To boost your sale, think unique and do what competitors are not doing.
You can invest in organic farming which is trending now. People have become more health conscious than before. They are ready to pour money on organic products. Investing in this sector can grow your money in the long run.
The most successful entrepreneurs are always in search of new opportunities, and they understand the importance of taking calculated risks. Relying on a day job or investments alone may provide some financial stability, but it’s not necessarily a reliable source of wealth creation.
Entrepreneurship offers unlimited earning potential. Unlike traditional jobs where you are paid a fixed salary or wage per hour regardless of how much effort or skill you put into your job role- entrepreneurs get rewarded for every hard work they put in their businesses. They have bigger control over their income compared to workers in fixed jobs.
Successful business ventures often open up various opportunities for investment and expansion that will drive revenue exponentially higher than a single source of income such as employment payslips.
While there’s no one size fits all answer when it comes to growing wealth through entrepreneurship or starting your own business venture,you’ll undoubtedly receive ultimate financial freedom once positive cash flows start rolling.
Invest in cryptocurrency
Last but not the least, Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions.
Bitcoin is the first known cryptocurrency, and after that many came into existence like Ethereum, Litecoin, Tether and so on.
As it is not subjected and controlled by the government or any financial institution, few believe in the authentication of cryptocurrency.
It is a volatile market. If you have the risk tolerance, only then you should invest in Cryptocurrency. You can grow your money exponentially if you invest in buying the right coin and sell it at the right time.
Understand the risks involved in this trading market. Even though it is growing at a rapid pace and people think they can become rich by investing in cryptocurrency.
Truth is, don’t follow what others are doing. Dig deeper before you invest.
Last Words –
You can grow your money if you are determined, have the knack for managing finance. The sooner you learn how to make money and savings, the faster you can build a wealth.
Incorporate some of these tips and see how you can transform your wealth over time.