I wanted to share some easy ways to make your money grow, even if you don’t have much of it. For years, money has been taken away from us due to debt, bank fees, and bills. I know this is how things are to sustain the economy, but let’s look at ways we can grow in 2019- physically, spiritually, emotionally, and monetarily. I wanted to share with you 5 ways to grow your money. Some involve no to some risk (what I mean by “risk” is you can potentially lose money in the process). Let’s dive in!
High Interest Savings account– no risk
When we were saving for our 3-6 months emergency fund, we were told to put it in a money market account because it gets better interest than a checking account. Yes the interest rates were better, but it’s wasn’t good enough for me. I probably got $0.15 a year. So we looked into other options. We heard about Ally bank and how they had a high interest savings account. So I reviewed it more and decided to open an account. It was so easy. I filled out some information on-line, then I received a packet from them 4 days later for signatures. I closed my money market account and transferred our funds to this savings account. I now receive $0.31 a day (and counting) in my account rather than $0.15 a year. There are other companies that participate in a high-interest savings account, but so far, I like Ally. If you are interested in more information about Ally bank click here.
Get rid of your debt– no risk
Do you work at a job that you love, but you don’t get a raise every year? Or maybe you’re a small business owner and your income has stayed steady over the past couple of years. Well did you know you can give yourself an instant raise by paying off your debt? For instance, I used to have a car payment of $245 a month. When I paid it off in half the time of my ending loan date, that money went right back to me. I then used it to save and pay off additional debt plus it increased our net worth!
Invest in your company’s matching plan– some risk
Don’t skip out on free money…ever. If your company matches, even if it’s a quarter of the amount you put in, do it. Remember 401k is pre-tax money, so once you reach the age of withdrawal (59.5) you will be taxed on what you remove. But if your company has a Roth 401k option and they match as well, you are in the gold because your money is growing tax-free (you will only be taxed on the employer match). If you are in tons of debt, I would hold off on putting money in the account. Wait until you’re a bit steady and invest, even if it’s 1% of your income. Your company should have a designated advisor for its plan, so schedule a consultation with him/her to make sure you’re investing in the right funds. Check out this link for maximum contributions and income limits.
Open your own Roth IRA– some risk
If you work full-time, you can have a 401k and open a Roth IRA. If you stay at home or own your own business, you can do the same as well. Remember, it’s good to have multiple streams of income or growth. Again, Roth grows your money tax-free and anyone can take advantage of it. Please keep in mind that there is a maximum you can contribute to your account and there is also income limitations. If you want to open your own account and manage it yourself, there are companies that allow for it like Charles Schwab, Betterment, Vanguard just to name a few. But if you want a financial advisor, check out a smart
Put your money in a Certificate of Deposit (CD)- no risk
I actually remember growing up and my mom putting her savings in a CD. I also remember that she got a pretty decent return from it. Fast forward to now, the rates are not as high as they used to be, but they are better than it was in 2008/9. I am thinking about doing this for my kids. How this works is you can go to the bank and put money in the CD (there usually is a minimum balance you can put in) and leave it in that account for a certain amount of time, usually a year. The account is “locked” until it reache its maturity date (you cannot add money in or out without penalty fees) while accruing fixed interest. This method is low risk and is great for a person who just wants to set it and forget it. Check out credit unions and online banks for best rates.
There are many other ways to grow your funds like in real estate, stocks, and more. Just choose whichever path you feel comfortable with and stay informed. How will you be growing your money this year?