MAKE YOUR MONEY WORK FOR YOU

Bank Savings Accounts:

While checking accounts may not pay much interest, savings accounts do. When interest rates are favorable, they can pay you a lot.Today, the best savings account rates are closer to 2%.

Certificates of Deposit (CDs) and Money Market Accounts: 

 To get better returns than bank savings accounts, consider CDs or money market accounts. These tend to offer somewhat better rates. Keep in mind that you’re supposed to leave your CD money invested for the full term or pay an early withdrawal penalty.

Bonds.

Bonds are another way to earn interest. Long-term government bonds often offer better rates than bank accounts and are backed by the U.S. government, making them relatively safe. Municipal bonds, issued by state and local governments, often have tax advantages. “Junk bonds” from less solid companies feature higher interest rates but come with more risk.

Investing for Your Future:

Explore options like stocks, mutual funds, and real estate. Diversify your portfolio to manage risk and potentially earn higher returns.

Utilize Tax-Advantaged Accounts: 

Take advantage of retirement accounts like 401(k)s, IRAs, and HSAs. These accounts offer tax benefits and help your money grow faster.

Pay Off High-Interest Debt: 

Prioritize paying off credit card balances, student loans, and other debts. The sooner you eliminate debt, the more money you’ll free up for other investments.

Automate Your Finances: 

Set up automatic transfers to your savings and investment accounts. Consistency and discipline are key to making your money work for you.

Invest in Yourself:

 Acquire new skills, education, or start a side business. Increasing your earning potential will ultimately make your money work harder for you.