Most Trusted Middle Class Saving Schemes

Aerial view looking directly down on a cul-de-sac in a planned exclusive residential community in the Scottsdale area of Arizona.
Art Wager / Getty Images

The middle class often faces the unique challenge of balancing everyday expenses with long-term financial goals. Thankfully, there are tried-and-tested saving schemes, but schemes can be risky, though offering potential growth.

Real Estate Crowdfunding

Rather than buying a property outright, middle-class investors can pool their money with other investors online to invest in real estate projects, sharing in the profits and losses.

Peer-to-Peer (P2P) Lending

P2P platforms allow individuals to lend money to others and earn interest on the loans, often at rates higher than traditional savings vehicles.

Micro-Investment Apps

These apps round up your everyday purchases to the nearest dollar and invest the change into a diversified portfolio, making it a hands-off investment strategy.

Robo-Advisor Managed Portfolios

Robo-advisors use algorithms to manage your investments for you, often at a lower cost than a human financial advisor. They can be a great way to access sophisticated saving schemes without a hefty investment.

Specialty Bond Funds

These funds invest in bonds with specific themes, such as green bonds or high-yield corporate bonds, and can offer unique opportunities for growth.

Tax Lien Certificates

Investing in tax lien certificates can potentially offer high rates of return. When property owners fail to pay their taxes, investors can pay the tax debt in exchange for a tax lien certificate which accrues interest.

Whisky & Wine Investment

Some middle-class investors turn to collectibles like whisky and wine, which can appreciate in value over time. However, this market can be volatile and requires expertise.

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Leveraged ETFs

Leveraged exchange-traded funds (ETFs) use financial derivatives and debt to amplify the returns of an underlying index, suitable for knowledgeable investors willing to take on more risk.

Farmland Crowdfunding

Similar to real estate crowdfunding, investors can now also get involved in agricultural projects. These can provide returns through crop yields and land appreciation.

Socially Responsible Investment Funds

Also known as ESG (Environmental, Social, Governance) funds, these schemes invest in companies with ethical practices, betting on the growing trend of corporate responsibility.

Binary Options Trading

Binary options are complex, high-risk financial instruments where you bet on the movement of an asset, with the potential for high returns or total loss of your investment.

Words of Caution:

  • Research Thoroughly: Before investing in any “scheme-y” saving plans, do your homework. Know the ins and outs of the investment.
  • Risk Management: Never invest more than you can afford to lose, especially in high-risk vehicles.
  • Scams Alert: Beware of schemes that promise guaranteed returns or quick profits. If it sounds too good to be true, it probably is.
  • Regulatory Compliance: Ensure that the investment platform you choose is compliant with financial regulatory authorities.
  • Diversification: Don’t put all your eggs in one basket. Diversifying can help manage risk effectively.

Innovative and “scheme-y” saving plans can be enticing for those looking to grow their wealth beyond conventional methods. However, it’s essential to balance the lure of high returns with the potential risks and to seek advice from financial experts when venturing into unfamiliar territory.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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