How many people have you heard of, like – say – NBA players, who will be making millions of dollars – but at the end of their career, they are broke? That is because there is a difference between making money and building wealth (the latter is obviously the preferred option)! Here is the good news: if you have simply been coasting on making money and not building wealth – we have an epic combination to help build your wealth and that is a high-interest savings account and some investments. Let’s get into it!
The Power of High-Interest Savings Accounts
Put simply, if you have a savings account, you are smart, but if you have a High-Interest Savings Account, you are brilliant! HISA not only gives you a place to store your money, it also helps you to make sure that money works for you while it is being stored somewhere – doesn’t that sound like the wealth-building dream?
Find a fintech platform that offers users a high-interest savings account all within an app. Getting an interest on your savings account while using the budgeting tools and getting spending insights on the same platform makes it super easy to manage your finances and to be on your path to wealth building.
Why You Should Prioritize Savings
As much as we would hope and wish that the world does not revolve around money – it does. To eat – you need money. If you want a warm place to lay your head – you need money. If you want to get treated at a hospital – you get it you need money. A HISA is a nice little cushion that will take care of things for you when the inevitable hits the fan! And when it comes to building wealth you need to know you have money tucked to the side that you are not playing fast and loose with just in case you need it to bail you out!
Smart Investments: The Next Step
1. Stock Market
Investing in stocks is a great way to grow your wealth over the long term.
While the stock market is volatile, it has returned more than savings accounts over the long term. Consider investing in index funds & exchange-traded funds (ETFs) to keep risks low.
2. Real Estate
Investing in real estate offers cash flow and appreciation potential. Whether you invest in rental properties or real estate investment trusts (REITs), this asset class is a great way to grow wealth.
3. Bonds
Bonds are typically less risky than stocks— they are debt investments in which you loan money to the organization in exchange for interest payments. They provide regular income through interest payments and help stabilize your portfolio during stock market downturns. Bonds can be useful — as a component of your investment strategy due to their relatively predictable return rate.
The Perfect Pairing: Savings and Investments
Now that you have an awareness of high-interest savings accounts, as well as valuable investments, let’s dive into how to make high-interest savings accounts and valuable investments work together. The backbone to achieving this is a strong financial plan that lets you put your money where it will create the most advantage.
- Set Goals: Find out what you are saving for in the short and long term. With this information, you can place in savings what you need, and invest the rest.
- Savings Automation: Use secure platforms to automatically save. Set up automated contributions to your high-interest savings account as often as you can so you can consistently grow your savings.
- Spread Your Investments: Spreading your money is crucial for spreading out risk. With investing, spreading your money to different asset classes and sectors gives you the best return possibilities.
- Refresh, Reassess, and Reset: Take a look at your financial plan and account for what, if anything – has changed. As your goals and the markets change, be ready to adjust what you are saving and how you are investing.
The 1-2 Combo Of Building Wealth
Building wealth is certainly not something that will happen overnight – nay. You are playing the long game here. First, you are making money and putting some aside for those rainy days, and then keeping an eye on the world and the markets to see where you can put some money so it goes to work for you and comes back with some more of its kind. This is how you build wealth, and before you know it – when you know you want to retire and just enjoy your golden years or send some kids to college– you have a nice hefty – ostrich-sized nest egg that can help you fund all this without breaking a sweat. You can use this handy dandy guide and secure savings tools to get you started on this journey of a financial lifetime!