Who doesn’t want more money in their bank account? Whether you’re looking to build your net worth, save for a home, or for memorable experiences with your loved ones, these awesome money tips are guaranteed to help you grow your accounts.
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Open A High Yielding Savings Account
One of my personal favorite money tips is to open your very first high yielding savings or money market account.
This type of account is perfect for your emergency fund money because it earns you interest every month.
What are some benefits to a high yielding savings account?
- Small passive income
- Earnings may keep up with the rate of inflation
- Some earnings may be enough to pay for a small expense
- You eliminate your money collecting dust
A high yielding savings account is going to slowly grow your money as it compounds over time.
While a traditional bank account will earn you $0.01-$0.02 a year, a high yielding savings account can earn you $10-$200+ a month depending on your APY (annual percentage yield) and how much money you deposit monthly.
This is why I suggest keeping your emergency fund in one of these accounts. You will see your money begin to work for you almost instantaneously.
APY’s change from time to time. When I first opened my account with BMO Harris they had a 2.05% APY!
Can I Take My Money Out?
Yes, you can take money out of these accounts.
However, these accounts usually take up to 3 business days for the transfers to be complete.
This is why money tip number two is to manage a personal savings account.
Manage A Personal Savings Account
By managing a personal savings account you are able to grow another account that will keep you and your family financially secure during a rainy day.
This account is best used to keep liquid assets.
What is a liquid asset?
Liquid assets or liquid money is money you can access immediately. Unlike a high yielding savings account you can withdraw or send money from this account instantly.
By having both a personal savings account and money market account you will feel obligated to inject money into both accounts.
By doing so you will begin to see your accounts grow!
How much money should I keep in here?
Your emergency fund money should be the big nest which means your personal savings account should have enough money for unexpected expenses.
This could be a few thousand dollars depending on your standard of living. In most cases, $1,000 to $2,000 at hand may suffice. Your emergency fund on the other hand should be anywhere from 3-6 months worth of living expenses.
Learn to Invest Your Money
Money tip number three is to learn how to invest your money. This money tips is going to ensure your accounts continue to grow in the long run.
Investing your money in the right places will bring higher returns than any savings or money market accounts.
Where can I invest my money in?
- Back into your business
- To start a business
- Real estate
- Gold and silver
- Stock market
Read: How To Invest In The Stock Market (Step by Step)
Highly successful people all use a variety of ways to invest their money. You need to find what best could work for you, and do your research like there’s no tomorrow.
It is important that you take the time and put an effort towards learning about your desired investment option. This will make the ride a whole lot smoother.
How do I set money aside for investments?
You may allocate money from your personal savings account towards investments as long as you continue to feed that account.
Make sure your liquid assets don’t run low and only move money for investments when you’re able to.
Set a threshold you cannot go below so that you have liquid assets available in case of an unexpected emergency bill.
Let me know in the comments section below which form of investment you’d like to start taking on for yourself!
Keep Track of Your Money
Money tip number four is to keep track of your money at all times.
For this I suggest downloading an app from Intuit called MINT.
Mint allows you to see all of your accounts, bills, and more on an easy to read dashboard.
How does this money help grow my bank account?
By keeping track of you money you begin to create a sense of accountability and responsibility towards your duties.
This strategy will help you achieve your goals as you see your accounts slowly begin to grow.
Maintain A Low Overhead
Money tip number five. Maintain a low overhead.
Simple – don’t live beyond your means.
Often times people will increase their income and increase their standard of living as well. Avoid the quicksand of income creep lifestyle.
By maintaining a low overhead you provide yourself with the means necessary to save and invest quite easily.
When should I increase my standard of living?
Increase your standard of living once you’ve met specific financial goals and you’ve developed a sense of financial security. When you’re ready, take things up one level.
If you increase your standard of living dramatically, you risk settling and stunt your financial growth. So, maintain a low overhead in order to grow your bank accounts.
Read: How To Set Financial Goals: 10 Simple Steps!
Find A Side Hustle
Money tip number six on how to grow your bank account is to take on a side hustle.
Side hustles are a great way to increase your household income. By increasing your income you can allocate the additional earning towards a financial goal.
Use this money to fund your emergency fund, your personal savings account, or your investment portfolio.
A side hustle can be a guaranteed way to grow your bank account if managed properly.
Discipline Your Spending Habits
And lastly, money tip number seven is learning how to discipline your spending habits.
Your spending habits are everything. Yet most people don’t understand this.
When you discipline your spending habits you are making a conscious choice to use your money as a tool. A tool that can create way for you and procure financial abundance.
The amazing thing is that this strategy works no matter what your annual income is. Learn to manage $1,000 and you will know how to man $10,000.
If it sounds simpler than it seems that’s because in all actuality it is. It’s all about your habits.
Read: 6 Money Habits You Can Develop to Win Financially
Think of millionaire’s who’ve lost it all
Ever wonder how in the world lottery winners have been able to lose millions of dollars only to wake up right where they first started?
The answer to that revelation is lack of discipline with their spending habits. This goes to show just how important it is that you understand the fundamentals of paying yourself first instead of others.
Leave your thoughts below!