Three Ways to Save (and Make) Money
We spend a lot of time trying to figure out how to stretch a dollar. We talk about shopping sales and clipping coupons. We use credit cards to gain a little more buying power, or loans to solve cash flow issues. All good ideas.
But sometimes just keeping more of what you have can solve a lot of issues.
If you have a low credit score, it likely means that somewhere along the line you got yourself into a cash flow problem, with more going out than coming in. Strategically saving money is a long-term solution to making sure that doesn’t happen again.
Best of all, while a low credit score or past financial issues can make borrowing a little tougher at some banks, anyone can start a savings strategy. Saving money is always an option, and it’s usually a good one.
First things first, remember this: You don’t have to have a lot of money to get started saving. Every penny makes a difference. Someday, for several reasons, you’ll be glad you stored a little cash away.
Here are some ways to turn a little cash into a lot more cash:
1. Regular Savings or Share Accounts
Rate of Return: Low
Regular savings accounts (or “share” accounts at credit unions) are the most basic type of savings option. They are ideal for short-term savings and provide easy access to your money. The interest rates on these accounts are generally low, but they offer a safe and secure place to store your funds. Make a plan to put some amount away every pay. They say “A penny saved is a penny earned”. Nowhere is that more true than with entry-level share account at local credit unions like the Ashland Community Credit Union.
Click here to learn more about Savings Options
2. Money Market Accounts
Rate of Return: Low to Moderate
Money market accounts typically offer higher interest rates than regular savings or share accounts. They combine features of savings accounts and checking accounts, often allowing limited check-writing capabilities. These accounts may require a higher minimum balance, but the funds are typically available if you find yourself in a cash crunch.
Click here for available Money Market account rates at the Ashland Community Credit Union.
3. Certificates of Deposit or Share Certificates
Rate of Return: Moderate
Certificates of Deposit (CDs) or “Share Certificates” available at the Ashland Community Credit Union, offer a fixed interest rate for a specified term, ranging from a few months to several years. The risk is low, and the return is usually high. However, early withdrawal can cost expensive penalties. You’ll want to make sure you won’t need this money before the term expires.
Click here for available CD rates at the Ashland Community Credit Union.
If you’re just getting started, those options may be the most palatable. You may also want to look into High Yield Savings Accounts, Treasury Securities, or investments like Mutual Funds and Stocks.
The key is to start. Putting a little something aside today means you should have more tomorrow. And that’s the promise of a brighter future in store.
If you need information or assistance in creating a savings strategy or choosing the right tools, feel free to call us.
We are people helping people, and we want to help you.
