The coronavirus pandemic has put a strain on the personal finances of millions of Americans, especially those who need to pay off debts, save for retirement, and struggle to save money. With continued economic uncertainty, it’s no surprise that many American men and women are looking for more effective ways and simple tips to save money and protect their financial future.
If you are interested in quick and easy ways to save money, you should visit Credible to find a high yield savings option that best suits your goals.
Do you find it difficult to regularly save part of your income? You’re not alone. Fortunately, there are many various money-saving strategies and tips that you can use right now to save money without putting extra strain on your finances, including:
- Automate your savings.
- Opening of a high yield savings account.
- Save additional income.
- Refinancing Your Debt.
4 MONETARY STRATEGIES TO IMPROVE YOUR FINANCES
1. Make savings automatic (via direct deposit).
While manual deposits to your savings account can be effective, automated direct deposits have the potential to increase your balance with more consistency. Set up a portion of your paycheck to be automatically deposited into your savings account each pay period to work towards financial success.
This effortless savings strategy through digital banking is one of the easiest ways to save and ensures that you regularly save a predetermined amount and avoid the temptation to spend money destined for your account. saving.
2. Open a high yield savings account (compared to a traditional account).
The first step to successfully setting up a savings fund is to open a dedicated savings account. The second step is to make sure that your savings account is giving you the maximum return available. Instead of opening a basic savings account, you should consider opening a high yield savings account that builds wealth. These FDIC insured accounts usually offer significantly higher interest rates than the basic account or checking account, even when high yielding interest rates are low.
Unlike certificates of deposit or IRAs, you can also withdraw money from a high yield savings account several times a month without penalty. Best of all, most financial institutions allow you to open a high yield savings account with no minimum balance or account activation fees.
HOW TO PLAN FOR UNEXPECTED EXPENDITURE – AND ALWAYS SAVE – ON A TIGHT BUDGET
Would you like to know the current interest rates available on high yield savings accounts or learn more about the benefits of this savings strategy? Find out how you can earn more money with high yield savings options through Credible today.
3. Save / don’t spend extra money (like tax returns).
Creating a budget is a great way to help responsibly allocate how your paycheck is recorded or spent. While any additional income you receive is beneficial, it can actually be more difficult to save these miscellaneous funds. Inconsistent income such as tax returns, work bonuses, stimulus checks and self-employed income should ideally be placed directly into a savings account. By immediately putting the funds into a savings account, you’ll resist the temptation to spend them – whether it’s on your cell phone bill, the grocery store, or an electric bill – and give your savings a shot. unexpected thumb.
4. Refinance debt to free up money.
Unfortunately, paying off debt with high interest rates can unnecessarily increase your spending and limit your savings potential on tight budgets. Fortunately, there is one option that will help you manage your debt responsibly while putting more money into your savings fund: refinancing. You can benefit from a lower interest rate on past due debts like your student loans, a personal loan, a car loan, other loan payments, and a mortgage.
HOW TO BUILD AN EMERGENCY FUND?
A lower interest rate allows you to continue reducing your existing debt and to put potential interest charges on your savings account. Put simply, it’s the difference between saving and spending a dollar: the two amounts can add up quickly, but only one saves your financial future.
Are you interested in refinancing your student loans or refinancing your mortgage to help save you extra money? Visit the Credible Market today to see all of your refinancing options.
The bottom line
The coronavirus pandemic has certainly plunged the US economy into disarray, which has only made it more difficult for people to spend a lot of money in their savings accounts and achieve financial well-being. Regardless of the positive or negative impact on the economy when entering a post-pandemic future, it is undeniable that having a dedicated savings account will allow you to better achieve your financial goals, regardless of whether it is from saving for emergency funds, retirement savings, or even to pay off credit card debt.
Refinancing a student loan or mortgage debt, setting up direct deposits, and managing your extra income are all effective strategies for increasing your savings account balance. No matter how much money goes into your savings fund, be sure to maximize your interest income potential by looking for high yield savings options.
HOW TO MANAGE DEBT BEFORE RETIREMENT
High Yield Savings Accounts have helped many men and women maximize the potential of their savings goals, whether it’s saving for college, planning for retirement, deleveraging, or lending money. buying a house. Visit Credible today to find a high yield savings option that will help you meet your unique financial goals.
Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.