There are numerous methods for growing your personal savings, whether it’s your first time thinking about the future or it’s time for portfolio diversification. From basic savings accounts and alternative assets to shopping health insurance with deductibles and premiums better suited for your needs, take a look at how to grow your savings.
Open a savings account.
The first thing you should do to grow your personal savings is open a basic savings account that has a low minimum balance requirement. Set up automatic savings transfer that move funds from your primary bank account to your savings account so that you don’t have to remember to do it. Sometimes credit unions and online banks offer a higher interest rate on savings accounts, but always make sure that they are FDIC-insured.
Consider alternative investments.
Investing is a great option for growing your finances. YieldStreet is a crowdfunding platform that connects an accredited investor with asset-based alternative investments in alternative asset classes. These alternative investment opportunities aren’t linked to the stock market, meaning they carry a low correlation to the dips that the stock market may experience. YieldStreet offers investment opportunities in real estate, marine finance, litigation finance and legal settlements, art finance, consumer finance, and commercial loans.
Each type of investment is backed by collateral such as fine art, real estate, and vehicles to protect against borrower default. YieldStreet investors are high net worth individuals who can pay the minimum investment and annual management fee. YieldStreet performs due diligence to vet originators and their investment offering. Learn more about the YieldStreet platform by reading Yieldstreet compaints and see how diversification can grow your finances.
Rethink your health insurance.
You probably don’t realize how much money you spend annually on health insurance. Unless you have health conditions, you likely only use your insurance for annual physicals and well visits. A great place to find significant savings is on insurance premiums. Health insurance premiums can be high and finding the right type of health care plan that’s a good fit for your needs and budget can be confusing.
Most employers offer employees group health insurance, which is often more affordable than traditional health insurance. Group health insurance plans offer lower premiums than traditional insurance because there are more people participating in the plan. Participants enjoy lower costs while paying a portion of monthly payments, and employers contribute a portion towards employees’ monthly premiums. There are different types of group health insurance plans such as Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO).
Some employers offer Medi-share, a non-profit health care sharing ministry in which participants pay a monthly share amount into a group pool. When a Medi-share member faces health care costs, they receive a portion from the pool to pay for eligible medical bills. With Medishare pricing, every Medi-share member has an annual household portion (AHP), similar to an annual deductible, that they contribute before the Medi-share plan contributes to medical care costs. Members are also responsible for their out-of-pocket individual mandate, and as part of the Christian Care Ministry (CCM) are expected to abide by the regulations of Samaritan ministries.
Medi-share is a health care organization, not an insurance company, which means plans often have exemptions for pre-existing conditions that mean out-of-pocket costs for members. Depending on the group health insurance plan, employees are covered for pre-existing conditions, emergency room visits, prescription drugs, and other medical expenses, such as hospital stays.
Make credit cards work for you.
Another good option for growing your personal savings is to take advantage of cash-back credit cards. Many credit cards offer applicants a balance-transfer option that consolidates the funds charged to an existing card onto a new, no-annual fee card. This is a good option if you can manage to pay off what you’ve charged within the first year at a zero percent interest rate. You can collect the cash-back rewards you earn on purchases and deposit the funds into your savings account, or use them to pay your balance.
No matter how much personal savings you have now, you can take one small step everyday to grow your finances.