In today’s discourse about how to build wealth, a common refrain often emerges: It’s not possible nowadays. With riding housing costs and inflation affecting from utility bills to daily essentials, setting aside extra savings may seem out of reach.
While economic headwinds may create obstacles, building wealth is still possible through intentional planning and consistent action. The path forward involves focusing on controllable factors and leveraging tools and money-saving strategies to create positive momentum.
Strategies for Growing Your Money
While setting money aside represents a vital first step, simply saving your money might not be a sufficient strategy to help you reach your goals. Growing your savings through the use of appropriate investment strategies can help combat the impact of inflation and bolster your efforts. In today’s economy, saving money may feel like a monumental challenge, but with discipline, clear goals, helpful tools, and guidance, it’s possible. By implementing these money-saving strategies and focusing on what you can control—your goals and habits—you can create momentum and gain confidence for your financial future.
Short-Term Growth Strategies
For funds you might need access to in the short term, consider options that prioritize liquidity and low risk, while potentially offering modest returns. These options may include:
- High-yield savings accounts: These accounts offer better interest rates than traditional savings accounts, helping your money grow while remaining easily accessible.
- Certificates of deposit (CDs): CDs offer a fixed interest rate for a specified term, often ranging from a few months to a few years. While funds are tied up for the term, shorter durations are available.
Long-Term Growth Strategies
Funds earmarked for longer-term goals often benefit from investment strategies focused on growth over time. Long-term investment options may include:
- Stocks, mutual funds, and ETFs: These vehicles offer opportunities for market participation and potential long-term growth. While they carry higher risk, diversifying your portfolio across asset classes can help manage risk while pursuing higher returns.
- Tax-advantaged accounts: Options such as Roth IRAs, 401(k)s, and 529 plans are designed to grow your savings efficiently. These accounts provide tax benefits tailored to specific objectives, like retirement or education funding.
*A diversified portfolio does not assure a profit or protect against loss in a declining market. Bank Certificate of deposits are insured by an agency of the Federal government and offer a fixed rate of return whereas both the principal and yield of investment securities will fluctuate with changes in market conditions. Investing in mutual funds and ETFs is subject to risk and loss of principal. There is no assurance or certainty that any investment strategy will be successful in meeting its objectives.Investors should consider the investment objectives, risks and charges and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds. Contact us to obtain a prospectus, which should be read carefully before investing or sending money.