Saving money is one of the most important things you can do for yourself and your family. Young investors often struggle when it comes to saving their money and knowing where to save their money. If you are looking for places to save money in your 20’s and 30’s, here are some great options to consider.
Savings Account
Everyone of every age needs to have a savings account. Most banks will provide you with a free savings account when you open a checking account. Having a savings account is vital to your financial health as there are going to be emergencies and other things that arise and you will need access to funds quickly. A checking account is required by most employers as they use direct deposit to pay their employees. Having the savings account linked to the checking account makes it convenient for you to move the money around as you need. It’s a wise idea to open up a separate savings account so that it is at a different bank where you cannot pull from the money as easily. Research online to find high interest savings accounts so you can stash your cash for a rainy day. This is also a great way to save up money for a down payment on a car or a home.
Stock Market
When you are young it is the time to be aggressive with your investments. Most of your investments need to be in the stock market. The best investment method to use is to invest in a Roth IRA. A Roth IRA allows you to invest your money and pay the taxes now so you can have the money tax-free when you retire. The reason a Roth is smart is due to inflation and also an increase in taxes in the future. You can save a lot of money by paying your taxes now versus paying them in 30 or 40 years from now. Check with your employer to see if they offer a retirement plan as they usually match part of the investment that you deposit each paycheck.
Precious Metals
Right now it’s not the best time to invest in precious metals because of how expensive they are but once the economy starts to level out you need to scoop up some precious metals. Gold is one of the most common precious metals that people add to their investment accounts. What gold does is help to balance out the risk of your stocks and other high-risk investments.
Money Market Accounts
A great way to earn interest money on your short-term savings like down payments on a home or a car is by using a money market account. Money market accounts will give you a higher interest rate from traditional savings accounts and it’s a great way to have an emergency fund available when you really need it.
CD Accounts
These are a great low-risk investment to add to your investment portfolio. The goal of the CD account is to help you balance out the risk of your stock market investments. Look for CD rates in order to determine if they are going to give you a decent return or not. Invest in short-term and long-term CD accounts in order to give you a decent return but a good risk solution against your stocks and real estate investments.
