Nine Ways to Keep Your Money Safe

Whenever you have some money saved up, you might start thinking how to keep it safe. While government bonds and saving accounts might seem like a straightforward solution, you might want to do more to protect what you have worked so hard for. From property investments to using guaranteed funds, there are several ways you can get a guarantee that the money you put in will be worth at least as much as it does now a couple of years down the line. Plan for your long term financial future, and consider the below ways of keeping your money safe.

1. Government Bonds

If you would like a written guarantee, and you live in the Western world with an advanced financial system, you are safe to invest in government-backed bonds. While you will not get the highest interest, if your country’s economy is not doing as well as it should, you will not lose money. If the country’s GDP picks up, however, you will be able to get some extra back. Government bonds are one of the safest investment funds, and can help you protect your wealth for a set period of time, so you can use it for investment or your retirement later.

1. Gold Bars

There is something that is less likely to lose its value than other materials. Gold bars are used by many rich people to keep money safe. You can also purchase gold bullions yourself online or from an investment company. Gold bars will hold their value, and cannot burn like cash. Depending on how much money you have, you could even buy diamonds. They are almost indestructible, but you will need to have a safety box and insurance to keep your valuables secure.   

1. Gold and Silver Coins

Image via Tim Evans

Instead of having gold or silver bars, you can also buy Austrian gold coins that are popular and likely to further increase their values in the next few decades. Coins are a good way of investing money, as they are – just like bars – hard to destroy, and you can get special insurance out on them. Most of the products coming out of the mint will have an identification number, so you can track and trace your valuables to keep them safe.  

1. Absolute Return Funds

If you choose absolute return funds to keep your money safe, you might even see some good returns over time. The good thing about absolute return funds is that they are not dependent on how the economy is doing. The funds invest your money into different bonds and shares, so you don’t have to put all your eggs into one basket. The funds are usually issued by the UK, Australian, and US governments, and have seen a return of over 20 percent in the past five years, according to some analysts.

1. Money Market Accounts

While investing in your home makes financial and common sense, you can also try to focus on money markets. Securities can include property development companies, as well as other projects. You will not lose your principal, but there is no guarantee that your investment will grow its value. While you can have the same amount in your account after a few years, if there is a high inflation rate in your country, your investment might be worth less a few years down the line. Choose the funds that have the best potential for maintaining your investment value or net asset value (NAV), by talking to a financial advisor before you make a final decision.

1. Certificates of Deposit

A certificate of deposit is also called a fixed-term loan to your bank. You will be able to get a higher interest rate than on a saving account. While you will need to have a substantial amount of money to be considered for this investment option, it can be both safe and highly rewarding. This method is also flexible, as you can choose to take your money out of the bank after one year, or keep it in for another, depending on your circumstances, and the return you received over the year.

1. Treasury Securities

This type of investment is issued by the U.S. Government. This fund is more volatile to market conditions than absolute return funds, as the securities’ value will depend on how much the investors are willing to pay for the funds at the time. There are three different types of securities you can get your hands on, all sold in $100 value increments: treasury bills, treasury notes, and treasury bonds. Treasury bonds are designed for long term investment, generally 30 years. Treasury notes let you invest for 2-10 years, and treasury bills allow you to withdraw your money even sooner.

1. Cash

Image via Igor Ovsyannykov

Of course, for many people, cash is the safest way of investing money. While you will not get a return, you will still have the same amount, provided that you keep it in a safe place. The disadvantage of keeping your money in cash is that it doesn’t give you a chance for growing it. Further, if inflation in your country increases, you are actually going to lose the value of your savings, and it will not allow you to buy the same goods with it a few years later. Some people think that this old-fashioned method is the safest, but others argue.

1. Saving Accounts

If you would like to keep your money safe, don’t want to risk having cash, and want a return to cover inflation, you can also get a fixed saving account. You don’t have to pay money for a safe deposit box, and your account will be guaranteed by the government. Savings accounts that are tied up can pay more than flexible options.

When you reach a certain amount of money saved up, or inherit money, you will need to face the decision how to keep your money safe and make the most out of your investments. The above safe investment options are guaranteed to pay back your investment, and can give you a peace of mind that you cannot lose your hard-earned money.