Here are 4 places to keep your money..
When it comes to managing your hard-earned money, fear of the unknown can hold many people back from investing. It’s perfectly natural to feel cautious—after all, nobody wants to lose their savings or make bad financial decisions. But here’s the truth: doing nothing with your money can be just as risky.
Where to Park Your Money Safely
If the idea of investing gives you anxiety, there are low-risk options you can consider to keep your money safe and growing slowly:
1. High-Yield Savings Accounts (HYSA)
With interest rates higher than traditional savings accounts, HYSAs are a great place to store your cash and earn passive income. While the returns won’t make you rich, they do offer security and liquidity. Right now, I use ALLY Bank and they give 4.2% (keep in mind though that these rate will start going down as inflation rates get cut)
In august, I received $151 from interest just from keeping my emergency savings in this acocunt.
You can open an account at ALLY BANK & get up to $125 cash for signing up HERE
2. Certificates of Deposit (CDs)
CDs offer a guaranteed return in exchange for locking your money away for a set period. The longer you commit, the better the interest rate. It’s a no-risk option if you can leave your money untouched.
3. Money Market Accounts
These accounts offer a mix between savings accounts and investment accounts, with higher interest rates and limited check-writing capabilities. They’re a safe way to keep your money accessible and earn more than a regular savings account.
4. Treasury Bonds or I Bonds
Government-backed bonds offer low-risk returns. I Bonds, for instance, adjust with inflation, which is a huge benefit when the economy fluctuates. You won’t get rich, but your principal is safe. I kept some of my cash in I-bonds at the height of inflation back in 2021 and it has grown 9%!
To read more about money accounts for short-term goals, READ HERE.
Why You Need to Learn About Investing
While these safe options offer peace of mind, they won’t help you build significant wealth over time. You really need to invest. And if you are scared of investing, educating yourself is very crucial because most of the fear comes from the unknown.
I am hosting my FREE investing class next week. Sign up here.
Here’s why you should make it a priority to learn about investing:
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Beat Inflation
Inflation erodes the value of your money. The 2% or so you’ll earn in a high-yield savings account might not be enough to keep up with inflation, meaning your money actually loses value over time. Investing can help you outpace inflation and grow your wealth. -
Grow Your Money Faster
Compound interest is a powerful thing. By investing, your money can grow exponentially over time, even if you’re only putting a little in at first. Education will help you understand how to minimize risk and make smarter decisions that pay off. -
Retirement Security
If you’re aiming for early retirement or financial freedom, investing is non-negotiable. Safe options alone won’t give you the growth needed to retire comfortably—or early. Learning how to invest will set you on the path toward the retirement of your dreams. -
It’s Not as Risky as You Think
Risk in investing can be managed, especially if you educate yourself. The more you learn, the more confident you’ll become about making decisions that align with your financial goals. There are countless resources, communities, and tools designed to help you invest wisely.
Start Small, Learn Continuously
You don’t have to dive in all at once. Start small. Consider an index fund or a low-cost ETF, both of which offer diversification and have historically offered steady returns.
But whatever you do, don’t let fear keep you from growing your wealth. With the right education and tools, you can invest confidently and achieve financial freedom.
Take the first step today.
P.S. If you want to learn more about investing for beginners, reply to this email or check out my free resources to get started! (better yet, attend my free one hour class HERE)
3 Stock Market News This Week 📈
- Sp500 has new companies: The index provider is adding software firm Palantir Technologies, tech company Dell, and insurance giant Erie Indemnity. Those companies will be replacing American Airlines, Etsy, and Bio-Rad Laboratories.
- According to the U.S. Census Bureau, median household income rose from $77,540 in 2022 to $80,610 in 2023.
- The Consumer Price Index (CPI) - a key measure of inflation - came in at 2.5% year-over-year in August.
2 Actions To Do Today 🌱
- MONEY: Download this app EMPOWER & start tracking your income and expenses. Financial awareness is necessary to manage your money better.
- LIFE: What is one thing you are thankful for today? Reply back because I would love to know. Being grateful is a key thing to happiness and feeling abundant.
ONE Quote to be Inspired ✨
"If I am worth anything later, I am worth something now. For wheat is wheat, even if people think it is a grass in the beginning."
Source: The Letters of Vincent van Gogh (hat tip to Dylan O'Sullivan)
To wealth and beyond,
Ellaine
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