How to make your money grow: 8 investments (2024)

1 - Make your money grow on a savings account

Often overlooked because of its very low remuneration, interest rates rarely reach more than 1% (capitalizable interests), the savings account is however an easy and secure solution to make your money grow.

Indeed, France is the only country to offer guaranteed savings accounts, which means that, no matter what happens, you have the assurance of recovering the capital deposited there. In other words, it is a risk-free financial investment. In addition, you usually have immediate access to this money when needed (ideal for your Precautionary savings). As long as you leave a minimum amount, you can make deposits and withdrawals at no cost and without causing the account to be closed.

So certainly, you will not become a millionaire with this method, but it allows you to put money aside at your own pace and to build up precautionary savings. Opening a savings account is an excellent option to start growing your money when you are young, especially thanks to the young savings account whose returns can exceed 1% depending on the bank.

2 - Make your money grow on life insurance

Often used to prepare for a transfer of wealth or an inheritance, life insurance can be a great tool to make your money grow. Thus, even if it sometimes struggles to show interesting performances, it remains one of the preferred investments of French people and offers many possibilities.

The initial capital paid into the euro fund of your life insurance policy is guaranteed. So you don't take the risk of losing everything. Enough to make your money work (almost) peacefully!

However, to really take advantage of life insurance to make your money grow, you can also opt for unit-linked life insurance. As a fiscal envelope, it allows you to house several types of assets (shares, obligations, ETF, SCPI, etc.). You can select the solutions yourself from the basket offered by your insurer, however, the managed management remains the best option. Invoiced at around 0.2% of your outstanding amount per year, it allows you to relieve yourself of sometimes tedious analysis work, but provided that this management is transparent and honest. Clearly, your insurer must offer you a significant choice of funds managed by different companies, and not only “in-house” funds.
Finary's opinion : to be profitable and make your money grow, the annual management fees for your life insurance must be less than 1%. Beyond that, they impact your performance far too much.

3 - Make your money grow with real estate?

Real estate remains a safe haven for investing your money. But it is also an excellent way to make your money grow, especially through rental real estate and investment in SCPIs.

How to make your money grow with rental real estate?

You have a large number of devices and opportunities to invest in rental real estate. Pinel, Denormandie, Censi-Bouvard, Malraux, rental naked, furnished, difficult to find your way around. And good news, no need to invest 300,000 euros to invest in rental real estate!

Your personal and fiscal situation will determine your investment strategy. Thus, Censi-Bouvard furnished rental real estate allows you to generate passive income for at least 9 years, provided you select your residence manager carefully. For its part, the Pinel law offers great opportunities in new rental real estate, especially with low interest rates that can potentially allow you to self-finance your investment, or even produce immediate income. Rental yields in France average between 3% and 4%, although some arrangements are (much) more efficient.

In any case, a real estate investment is rarely made at a loss, and the rental market tends to grow rather than vice versa. Between rental income and added value, you are almost guaranteed to make your money grow by investing in stone.

How to make your money grow with SCPIs?

Investing in SCPI (Société Civile de Placement Immobilier) is what is commonly called a “rock-paper” investment. In other words, you invest your money in real estate (stone) by buying shares (paper) in the company, which thus raises funds to invest in business real estate. SCPI shares have the advantage of being much cheaper than buying real estate. In fact, you can find them starting at a few hundred euros. In addition, risks are shared since real estate is “divided” into shares, and management is passive: the company manages the assets and pays you dividends for a fixed period. Like traditional real estate, the return varies between 3% and 4% on average.

4 - Make your money grow with the stock market

Riskier, the stock market is often the first way investors think of to make their money grow quickly. However, investing in the stock market cannot be improvised. You need to understand how products and markets work. To do this, you have the choice to start alone, to be accompanied by a broker or even a wealth manager. First, you need to determine your risk profile and goals, and then a specific strategy.

To make your money grow on the stock market, it is important to diversify your portfolio with the different types of products available: stocks, bonds, and stock market indices. Shares allow you to own some of the companies listed on the stock exchange and therefore to regularly receive dividends that will gradually increase your capital. Bonds are government or corporate debts on which you earn yourself thanks to interest, the rate of which can vary. Finally, you can follow one or more stock market indices using ETFs to replicate their performance.

5 - Make your money grow with a PEA

A very attractive fiscal envelope, the PEA (Plan d'Épargne en Shares) is an ideal tool for growing your money in European equities or ETFs eligible for PEA over a medium and long term horizon. Once the holding period has been reached, 5 years, you have a low-cost, tax-exempt product that allows you to access the stock market easily.

This method is a great opportunity to make your money grow when you are young: the sooner you set a date, the sooner you can take advantage of your savings under favourable tax conditions. The PEA is an excellent solution when you do not have a succession objective and time in front of you.

6 - Making your money grow with crowdfunding

More original, the crowdfunding, or participatory financing, allows you to invest in innovative businesses and if they succeed, to recover your bet, or even to make your money grow. It comes in various forms:

• traditional crowdfunding: you invest in a company and benefit from a pre-determined compensation;
• the Crowdlending : you lend money to a company or an individual to finance their project. If interest is expected, you can hope to make your money grow;
• the crowdequity.

To make your money grow with this last point, it is important to carefully select a start-up or a project with high development potential, to invest in the form of shares, and then to wait. Crowdfunding offers you the opportunity to participate in corporate campaigns whose values you share and which have a real impact on society.

The main risk of this type of investment is not being able to get your money back due to bankruptcy. Indeed, it is accepted that 90% of start-ups fail.

On the other hand, if the project is successful, you can hope to multiply the value of your investment at the end of the campaign, especially if you receive dividends when the company performs well.

7 - Making money grow with cryptocurrencies

Popular by the biggest investors, cryptocurrencies are a risky investment, but they can be very profitable. Indeed, in addition to the traditional risk of losses linked to the extreme volatility of this product, there is also the risk of piracy. In fact, the latter is not negligible and can cause you to lose all of your capital.
To invest in cryptocurrencies, you need to open a wallet and go through an online broker. You then buy a certain quantity of a cryptocurrency, a bitcoin or an Ethereum for example, and follow its price to resell it at the appropriate time.

8 - Make your money grow by creating a business

Why not use your own skills to make your money grow? If you have an idea for an activity that can make you money, get started!

With or without starting capital, you can create your online business in order to generate passive income. Training, advice, support, you can market a large number of products. And while creating and implementing your project may take time, you have access to the key to almost infinite financial independence and income freedom! To achieve this, you will need to carefully study the potential of your project and its viability.

The most frequently asked questions

How do you make your money grow quickly? The riskiest solutions are generally those that allow you to make money grow quickly. You can therefore turn to stock market trading or cryptocurrencies.

Where to invest your money to make it grow? Several products are available to make your money grow. You can thus place it in savings accounts, life insurance or even on a PEA. Investing in the stock market and real estate are also effective solutions to make your money grow.

How do you make 1,000 euros grow? You can make them grow thanks to trackers (ETFs), shares in yield SCPIs, start-up shares or by placing them on a life insurance contract.