The first thing you need on how to make savings grow is to prioritize saving money, first and foremost. Too many people want to save money yet never actually does so. We can’t keep spending money and expect to have money leftover at the end of the month.
Savings is security. The bear market of 2022 taught everyone that no one is safe. Layoffs can happen in the blink of an eye without warning. It’s nothing personal. If the company just isn’t making any money, then they have no other choice.
How to make savings grow is possible for the majority yet few put in the work. Americans have an abysmally low savings rate of 2.4% as of November 2022. That’s just bad. That’s one paycheck away from declaring bankruptcy and/or having to borrow from their parents.
You don’t want to depend on anyone else but yourself. You should be self sufficient and especially more so when it comes to finances. I’ve been saving the majority of my money for the past seven years and it’s the most rewarding work I’ve ever done.
I personally have $400k+ to show for it at the end of it all. How to make savings grow is hard and requires sacrifice and some smart steps but anyone can get there. By the time I graduated college, I had $40k to show for it by end at 21 years old.
Everyone can save money. It’s time to make yourself richer and not corporations.
How to Make Savings Grow: 9 Ways to Do So
How to make savings grow is possible when you take intentional steps to stash away your money. Every dollar you spend is one unit of power that goes to corporations. You don’t want that happening.
1) Prioritize Saving Money
If you don’t prioritize or even have the desire to save money, then you’re not going to save money. How to make savings grow requires you to have savings in the first place. My savings accounts grow bigger every month because I pay myself first.
Aside from food, rent, and insurance, I stash away a majority of my money to grow. There’s not a lot of wants in my life. I have almost everything that I need and want. After paying all my bills, I transfer my money from my savings account to my checking accounts.
This isn’t even including my HSA, 401k, and Roth IRA contributions. All of those are automated so I automatically save money anyway. It would be the biggest shame of my life if I have nothing to show for it by my 30s. I’m always taking steps to protect myself financially and grow my net worth through my money.
Nowadays, it feels wrong for me to not save my money because I exercised my saving muscle so much.
2) Invest in Your Earning Potential
No matter how much others tout the greatness of passive income, your active income is what builds wealth to begin with. How to make savings grow means investing in your earnings potential. A $10k investment to grow your active income by $50k is worth it.
That’s what education is for. I personally spent $40k on my education to get to my income of $200k in my 20s. That’s a huge payoff that’s worth it. When you earn more money, you have more savings. It’s highly correlated because it’s just math.
Whether it’s through a side hustle income or active income building, just make more money. There’s nothing wrong with wanting to make more money, either. Always be on the lookout for more opportunities to increase your income.
It’s what gets you to build wealth in the fastest amount of time. The more money you make, the more money you save.
3) How to Make Savings Grow: Invest Your Money
Even just keeping your money in a savings account is worth it in 2022 and 2023. Some savings accounts were paying a risk free 4%. That’s insane! In my finance college classes, they taught us a 4% yield is only possible on a 10 or 30-year treasury bond, for example.
However, treasury bonds are not liquid. Savings accounts are. That is a great investment return rate. There’s many great asset classes that exist today to grow your savings with. Stocks, bonds, crypto, real estate, and even art. More asset classes are popping up.
When I started my wealth building journey, I invested everything I could into the S&P 500 through my 401k. I still do so because I made it a habit to do so. Investing is what builds the real wealth. Your active 9-5 income is great but investment income overtakes your active income after time.
Investing adds the boost to your overall earnings without trading your hours for it.
4) Follow a Bare Bones Budget
How to make savings grow means having more money to save with. That means cutting down your bare bones budget. Alex Hormozi got me this inspiration when he highlighted that he only spend $1.5k/mo when he was making $20k/mo.
That’s a GREAT savings rate! Your biggest 3 expenses is housing, transportation, and food. Once you take care of these 3 biggest line items, the world is yours to save more money. I personally only spend about $2k/month because there’s no need for me to spend more.
I already have everything I could possibly want in my life. In the meantime. I’m always looking for opportunities to increase my income. I’m always negotiating my bills so I pay even less money than the year before. There’s always a way to cut the fat and pay less money to others.
When you have more money coming in with minimal expenses, then your savings grow month over month. Bare bones budget is a game changer.
5) Cancel Unused Subscriptions
Too many people pay for subscriptions without using it! Popular subscriptions include Netflix, Amazon Prime, Cable, Spotify, Audible, and Dropbox. Those can easily add up to $150+ per month. How to make savings grow means cutting back on expenses you don’t even need in the first place.
Too many people hand over their credit card information without understanding the company will charge them monthly. Even if they don’t use the service at all. I personally cancelled my Amazon Prime membership because I get the benefits for free without the membership, anyway.
I normally meet the minimal spend required to get the free 2-day shipping. That gives me no incentive to use Amazon Prime because Amazon Video isn’t all too good anyway. Netflix is far superior. The subscription model is how companies increase their valuation.
Prospective investors love to see “predictable steady cash flows” in the presentation model and therefore pay a premium to value the company. Don’t let the companies win even more than they already are at your expense.
6) Start a Side Business
Side hustles just cannot be overstated enough. There’s unlimited opportunities to start side hustles today. Blogging, pet sitting, Youtube, TikTok, and many more. The creator economy is here to stay. How to grow savings means doing anything to grow your income.
Side hustles are an excellent way to do exactly that. The best side hustles are when you don’t actively trade hours for dollars. There has to be the opportunity to scale. Otherwise, it’s not worth it at all. I personally have a Twitter account and this blog as a side hustle.
I’m looking into starting a YouTube channel next as my next venture. No matter what, I’m putting in the effort and work to increase my income. Business is a ton of fun and it’s even more fun when you get paid money to do it. It’s someone else seeing the value in you.
Your weekends aren’t just for relaxing and rewinding. They’re used to get ahead against someone else who don’t put in the same amount of work you do.
7) Save Money for Years
How to make savings grow doesn’t happen overnight. It takes years of dedication, patience, and sacrifice to make money grow. Money isn’t easy to come by. There’s people actively protecting their capital because it’s what provides them a livelihood in the first place.
When you consistently increase income and save money over years and years is when your results show. They don’t show tomorrow but it shows eventually. You have to be patient. It doesn’t matter that your friends are buying houses if that’s not in the works for you.
You can take your time with it. The housing boom of 2020 – 2021 left many with fear of missing out. Then 2022 and beyond came and it came time to pay the piper for buying overpriced houses. Even at historically low interest rates.
You can take your time saving money instead of paying attention to what others are doing. It’s your story and your path, not anyone else’s.
8) Open a Savings Account
Savings accounts were almost a joke because they paid little to no interest. 0.01% were popular interest rates. However, in 2022 and beyond, savings accounts were worth it. How to make savings grow is infinitely easier when you have a designated savings account in the first place.
I personally have multiple savings accounts to diversify my banking risk. It’s been highly worth it because the sign up bonuses were pretty steep. A couple hundred dollars for keeping my money in there for just a month? Why wouldn’t I ever take that deal!
How to make savings grow means having an actual savings account to put there in the first place. When you’re first starting out your building wealth journey, there’s nothing wrong with constantly checking your savings accounts to double check that nothing’s awry.
The banking system may be flawed but it’s the best system we have so far. Savings accounts make savings grow to larger amounts.
9) How to Make Savings Grow: Never Give Up
The journey to save a lot of money and grow it is a hard one. It requires so much sacrifice, attention, and diligence that you will want to give up a lot throughout the journey. When I had $300k, I was happy. However, it demoralized me knowing that that’s nowhere near financial independence.
Then when I hit $400k, it demoralized me even more because it’s still nowhere near financial independence. How to make savings grow means accepting that the journey is a hard one. It’s not going to be an easy one because you never know what the investing market will do.
You may face a 3 year bear market that wipes out and decimates your investments. Maybe even get laid off in the process. Whatever the case is, there will be twists and turns throughout the journey. Things you never even thought was capable of happening will happen.
It’s time to never give up and be prepared to go for it for the long haul.
How to Make Savings Grow is Always Essential
You have to grow your money otherwise it loses value through inflation. The US encourages at least a minimal amount of inflation to happen because that’s what a healthy economy does. Therefore, you either have to grow your money or you get left behind.
You can’t remain stagnant because the value of money always declines every single year. A taco bell taco used to only cost 50 cents. Now they cost a dollar. That’s 100% inflation! How to make savings grow is so necessary for your life you can’t afford to sleep on it.
The great news is that it’s all up to you to make it happen and there’s unlimited opportunities to make it happen. Even though I don’t want to save a majority of my income anymore, there’s others who I get inspiration from to keep me disciplined with my savings.
If a multimillionaire cut down to the bare bones budget of $1.5k/month, there’s no reason you can’t either. It’s all a short term sacrifice for long term winnings. It’s going to be so worth it when you finally win. All that hard work will have been worth it.
The really gigantic titans of the business world figured everything out themselves. It’s almost a disadvantage to start with many resources because you think you already “made it”. No, it takes hard work to make it and part of the fun is figuring out how to.
That’s how you really learn. Once you know how to make savings grow, you won’t want to stop.
How to Make Savings Grow: 9 Shortlist Ways
- Prioritize saving money
- Invest in your earning potential
- How to make savings grow: invest your money
- Follow a bare bones budget
- Cancel unused subscriptions
- Start a side business
- Save money for years
- Open a savings account
- How to make savings grow: never give up
