There are a variety of different savings goals to have: emergency fund, retirement, vacation, business needs, and so much more. Some people save for each goal all at once (a little for each goal out of the same money), while some save for one goal at a time (all the money they need for one goal before going to the next goal). You know that you need to save, however HOW are you going to save? Are you making any money from it or is it under the mattress collecting dust. Well the goal is always to allow your money to work for you. Here are two ways to do just that:
- Get a high yielding savings account.A traditional savings account is really an account that holds your money. The interest rates that they pay for the money in those types of accounts are laughable, as they are way too low to count towards the goal of your money making money. It simply is not enough of a return to really help you to grow your money. High interest savings account work better towards achieving your goal. Start researching savings accounts that give you a higher interest rate; some of them may even be online banks. There are so many banks or credit unions that have them; even some cell phone companies have them. Once you get one and compare your new interest payments to your old ones, you will understand more clearly the huge difference and wonder why you didn’t start before now.
- Do notstick to one bank.Just because you have been at a bank for a long time and have built a relationship does not mean you have to stay with them for all of your banking needs. If the bank does not offer a higher rate of return for the accounts you need, get that account with a bank that does. Your loyalty is to the goal of your money working as effectively as possible to give you the highest return. If you have a 1.5% interest rate at your current bank and another bank offers 3.5%, by all means give your current bank a chance to match that interest. However, if your bank doesn’t budge, move your account to the bank with the better rate. You have to look out for yourself so that your return will be higher. Your loyalty should be to results.
These are two important tips to consider. If inflation is 2% and your money is .01%, you are hustling backwards. You have to make your money work for you, especially if you are not heavy into other investments. In order to grow your money, investments play a huge part of wealth building. So take a look at the interest rates of your current accounts, and research how you can get that same money to work better for you. You have to start somewhere, so start now. Research, implement, and analyze your results.