Popular New Year’s resolution is saving more money. However, it is more complex than working a little more or cutting expenses from your budget.
Popular New Year’s resolution is saving more money (PHOTO: Yahoo News Singapore)
Here are the top three suggestions for where you can keep your spare money this year.
1. Emergency Fund
Popular New Year’s resolution is saving more money (PHOTO: FinLocker)
Everyone’s top financial priority should be an emergency fund. It’s best to check it over to ensure it’s still sufficient after experiencing inflation over the last year.
An emergency fund should have at least three months of living costs. You can use online emergency fund calculators to help you save.
2. High-yield saving account
Popular New Year’s resolution is saving more money (PHOTO: CNBC)
For short- to medium-term financial goals, saving for a high-yield savings account is an excellent emergency fund. As long as you keep your financial information confidential and don’t exceed the FDIC insurance limit, these accounts have no risk of loss.
3. A retirement account
Popular New Year’s resolution is saving more money (PHOTO: Forbes)
If you don’t intend to spend money anytime soon, a retirement account is an excellent idea for your savings. Investing your money can help it grow more quickly. Also, this will minimize how much you ought to set aside for retirement.
These savings accounts are FDIC insured and have the potential to earn you more than thirteen times your deposit.
Many individuals miss out on insured returns as their money depreciates in a big bank savings account, earning next to no interest. You can make more than the national average savings account rate through online savings accounts.
