Have you ever wondered what you should do with the extra money you get from your savings? Should you let it sit in your account or should you use it to get more extra money? Here are some tips that can help you decide!
One of the main financial tips is to build up your savings to get extra money, but what most people don't know is what they should do with those funds.
The key is not to leave your money sitting in your account! But, where should you put it to gain extra with your funds? Here are some ideas that can help you earn more money from your savings.
Turn to online banking
Although keeping your money in your traditional savings account can be a good start, you won't be getting plenty of extra money out of it. Interest rates are quite poor in most of the savings account, so you should make a move.
Start by searching for online banks! They don't usually have traditional banks' fees and offer much higher interest rates.
Moreover, these types of banks offer other options like Certificates of Deposit (CD) and Money Markets, which can also help you earn more money. These accounts are similar to a savings account, but with a few differences. For instance, how you can access your money, terms to gain a better rate and initial deposits.
Join FinTech investments
If you are not interested in earning money in a passive way, you can begin investing. This will mean facing a few risks, but also bigger rewards. A good place to start is by investing in financial technology (FinTech) companies.
If you are a bit lost in the world of investment, you should look for mobile apps that can guide you to increase your gains and portfolio. For example, you can link your debit and credit cards to Acorns to round up your purchases and then invest the change.
You can also choose whether you want to be a passive or more aggressive investor. This will depend on your risk tolerance and the amount of money you want to invest.