You have finally been able to put a little distance from living paycheck to paycheck and now you have savings that can be used for any number of things.
It is always good to have extra money in the bank for life’s little, and not-so-little emergencies, but what do you do to make your savings grow?
The money you saved will do no good hanging around in your checking account, just waiting to get spent, so where should you go to put it to work?
How do you put it to work? Well, below are three ideas that can make your money work for you if you do it the right way. Without further ado, let’s go!
Financial Vehicles
There is no shortage of financial vehicles in which to put your savings. Keeping your money stagnant in a checking account that will bear little or no interest is allowing your savings to sit around and watch tv all day. You need that money working as hard as possible so it will grow and bear fruit…or at least more money. Therefore, it is important to research which financial tools will maximize your savings.
Virtually anything will provide higher interest rates than a checking account but it is important you know the rules before you invest. There are Certificates of Deposit (CDs) that will promise to give you a certain interest rate but in exchange, you must promise to leave your money in that investment for the stated period of time.
If you decide to pull your money early there can be substantial penalties to do so and instead of making money, you will actually lose money.
Government bonds, stocks, high yield savings accounts, IRA’s, and 401K’s (if your company has such a program) are all available tools at your disposal so make sure to do your homework and find out which have the highest interest rates so your savings can make money even while you sleep!
Invest in Sports
There is no lack of interest in sports, especially due to the global pandemic shutting down professional basketball, hockey, baseball, and interrupting the NFL over the past year. Take something away from people and they want it even more which is where we are after the NBA, NHL, and MLB found ways to work around COVID-19 and institute medical protocols to keep its athletes safe.
So how can your savings take advantage of the public’s insatiable appetite for sports? Many small entrepreneurs have turned to sports memorabilia as a way of investing their savings into a hard asset that can be bought at one price and sold for a higher price. The internet has made it possible to get your product out to a wide audience and develop a following that you can stay in touch with via email, text, or any number of direct message platforms.
Anything from an athlete’s framed game jersey to an autographed ball are all fair game. And you can even find a betting site or land-based sportsbook that will eagerly pay big bucks for the right piece of memorabilia as a marketing tool to use as a giveaway to woo new customers or adorn its facility. Educate yourself on the market and make sure that the merchandise you buy today will pay dividends tomorrow.
Pay Down Your Debt
Sometimes the best way to save is to eliminate debt. It’s true and if you are saddled with credit card debt then this is an excellent option to use your savings wisely. As many of you may know, the interest rates on savings accounts are minuscule, and making one-percent on your money might seem better than nothing.
Using a credit card and paying it on time helps you build your credit score and gives you cash rewards.
With better credit, you can get loans at lower rates.
With cash rewards, you get paid for making purchases with your credit card.$MA $V $DFS $AXP pic.twitter.com/XSNPgEwLim
— Dissecting the Markets (@stockmarkettile) February 22, 2021
However, if you have credit cards or other high-interest debt costing you 10, 15, or even north of 20 percent then you need to extinguish the flames before your financial house burns to the ground.
What good is making a point or two on your savings when you are paying exorbitant interest rates on your credit cards?
Your best option is to knock that credit card debt down as quickly as possible and once you do, you can begin to save for real.
Make sure to put together a call-to-action strategy that will force you to put any extra money you have in the bank towards these accounts. Once you have done that, allocate a certain amount of your monthly income to paying off these high-interest money suckers and before you know it, zero balances will be in your future!
