I am a simple person, don’t like too many steps or having to remember to do stuff. If I can set and forget something that works in my favor then I’m all in! Three ways I make that happen are High Yield Savings Account, ROTH Contributions, and Investing. We’ll dig a little deeper below.
1. HYSA – High Yield Savings Account – This I wish I had started sooner, don’t be like me.
This is the one thing that just works for me. I put my money in and leave it to work. With the higher monthly percentage I get back, my coins are working harder for me than just in my regular bank or credit union. Now don’t get me wrong, banks and credit unions have their place. But if you can stash away a little at a time to that HYSA, set it and forget it. You can look back in 6 months and see the fruits of that little labor.
I personally use Ally Bank (not sponsored, I just really enjoy them). They are all online, so they have no physical branches. If you want your money, you’ll have to wait a couple of days for it to transfer to another bank (which gives me time to contemplate if I REALLY need those new shoes or that organization system I saw on Amazon). Simply setting aside $50 a month can really do wonders for your savings with a HYSA. If I personally cannot see it, then it flourishes because I cannot go in and sabotage all my hard work with saving. As far as I know, that money does not exist until I log in to check the progress.
2. ROTH IRA Contributions – Your future self will thank you.
If I had a dollar every time someone told me to open a ROTH IRA when I was younger… A Roth IRA is a type of individual retirement account (IRA) where you pay taxes on money going into your account, and then all future withdrawals are free from tax once you reach age 59½. There are some rules though, the account must be open for at least five years to avoid penalties, and you are free from tax on your investment earnings. So you can’t go take all the funding out of the account after 5 years and call it a day. It is made to work passively for you to assist in the future. A ROTH IRA can be a gateway into setting your future self up for retirement or even financial freedom if you play your cards right.
3. Investing – Books.
Now, due to my day job I cannot legally provide you with investing advice. BUT I can recommend some fantastic books that I have read on the subject. Some below are classic and others provide you with the bare basics to get started.
- The Simple Path to Wealth – JL Collins (Audiobook available) https://amzn.to/4e6DM8o
I really like this one because it is an easy read. He writes it to his daughter who has no interest in investing, so he takes the time to break it all down.
- Retire Before Mom and Dad – Rob Berger (Audiobook available) https://amzn.to/3YI64Sw
I like this one as well, it is an easy read and gives off the same vibes as the first one.
- The Money Manual – Tonya B Rapley https://amzn.to/4ecraN3
I just started this one, so far so good. Encourages you to take a hands-on approach to you finances.
- I Will Teach You to Be Rich – Ramit Sethi (Audiobook available) https://amzn.to/4hqJcxX
I have not read this, but it is next on my list. A classic.
These basic step will get you started with making your money work for you. The more you push into these easy first steps, the harder you funds will work in your favor. There are more advanced ways that you’ll learn along the way. But for now, enjoy the journey!
-Adele-
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