Do you desire financial success? Every working person wants to know that their money is going to a good place. Working paycheck to paycheck causes loads of stress. Are there savings plans that give you more financial peace?
You can make your income work for you by putting it into proper savings accounts. Here are some easy savings plans for you to consider!
Certificates of Deposit
Certificates of deposit, also called CDs, are a great way to multiply the money that you’re storing away. Setting up a CD account requires you to leave your money locked up for a longer period of time.
However, there is a high yield of interest that builds during that time! It’s also a really safe way to store your money away. Most banks will cover a significant amount of damage if that money is ever lost.
How Much Do You Save?
When you get paid every month, your paycheck goes to a variety of different things. How much should you save when the money hits your bank account?
It’s suggested that you set aside at least 20% of your pay to your savings. There are several ways you can do this that all come with their own unique results.
High-Yield SavingsÂ
If you’re just starting out with saving, there are more flexible accounts that still give you access to your money. Early withdrawals from CDs result in a penalty, but high-yield savings accounts are much more flexible.
This is a great option for an emergency fund. Financial expert Dave Ramsey suggests that you always have an emergency fund of $1,000 to set aside for extenuating circumstances. High-yield savings allow you to accrue interest for as long as you leave it alone.
Retirement
Saving for retirement is an investment in your future self. Having the funds for a proper retirement will allow you to enjoy the fruits of your labor. The best way to invest in your retirement is to save little pieces of your income at a time.
401k plans allow you to put money away that can be accessed, tax-free, after you decide to retire. The amount you contribute can also be matched by your employer. Some even take it straight out of your paycheck for greater convenience.
Next Steps…
Determine how much you have to store away and what’s available to spend on assets. From there, put the appropriate funds in each category. Over time, you’ll find that your investments gave you all the financial peace you need.
