How to Save Smart in 2017
Although you can rightfully say that knowing how to save has always been important, quite a few experts would say that this skill is now more important than ever. In order to have some cash in your investment portfolio to deal with emergencies and short-term goals, you need to deal with volatile markets and many other issues.
The Federal Open Market Committee has announced gradual increases in the federal funds rate, depending on the expected economic growth, which is why you might want to read the following tips for maximizing your income in 2017.
High-yield reward checking accounts
These come with much higher rates than traditional checking accounts and most of them have no maintenance fees. The problem with them is that they require regular monthly debit card purchases, which need to be quite high if you want to get the highest possible rates. You will also be receiving direct deposits and e-statements.
The popularity of high-yield reward checking accounts has been rising constantly for the past several years, with many banks and credit unions offering them. You can visit some of the local branches or even open an account online with a bank from any state.
Internet savings account
This is another way of getting higher interest rates than from traditional banks. Another benefit is that they usually up the rates very quickly after Fed rates increase than accounts at other financial institutions. You can also link your internet savings account to your checking account from any bank, which will allow you to fund the savings account by transferring money from your checking account electronically, without having to leave the comfort of your home.
You do need to be careful, however, and look for an internet savings account which doesn’t require a minimum balance, since such requirement can make you keep more funds in than you want or than you can afford. One more thing to avoid is an internet bank that makes it difficult for you to move your funds electronically and puts a small limit on the amount you can transfer in one transaction.
CDs are still running strong
It’s understandable that many people are afraid of CDs, believing that their funds will be locked, thus preventing them from using some opportunities that may arise. Still, in an environment of lower interest rates, CDs provide higher earnings than liquid savings accounts, which is why they shouldn’t be discarded so easily.
You may wish to open multiple CDs, a so-called “CD ladder”, which all mature at regular intervals, meaning you’ll never wait too long. The best CD rates are offered by internet banks and credit unions, so you should check out their offer.
Consolidate your debts
This is a tip that almost always makes sense, but some people still feel reluctant to take it. Namely, instead of taking care of several different loans, you can combine them all into one by consolidating your debt. There are many financial institutions offering this kind of arrangement and the interesting thing is that you can calculate your budget from a trusted loans advisor like Australian Lending Center , you can find free budget-planning calculator on their website, which means you can instantly get all the relevant information about your future financial commitment.
You need to be flexible and open to ideas of pursuing various options in order to save or make as much income as possible. Being informed is crucial and you really need to be realistic about your ability, without jeopardizing the normal functioning of your family.
The fact that there are more institutions to choose from means that the conditions should be more favorable, but you also need to know exactly what each arrangement entails and what your obligations are. Finally, be careful not to fall victim to some scam. If something sounds too good to be true, it probably isn’t true.
Raul Harman’s is a business consultant from Sydney, Australia. He has master’s degree in finance and banking and is currently doing financial consulting for various tech companies. Lately, Raul has been mostly concentrated on start-ups and helping them seek the resources to build their company. Raul is a passionate runner and adventure seeker. Every spare moment he loves to spend in nature. Currently writer for Technivorz, and BizzMarkBlog