Put Your Money To Work
You work to earn your money. My philosophy is your money should work for you. I don’t know about you but I am not able or willing to work 24/7….but your money can. Basically you want every penny you have to be earning interest for you. How can it do that?
DO NOT KEEP WADS OF CASH
My uncle used to always flash a roll of cash after every payday. All I can think about is losing it, getting robbed, and the fact that it is not earning you any interest. In fact, the simple act of having a bunch of cash makes a lot of people want to spend it. Hasn’t everyone experienced the sensation of money burning a hole in your pocket? Don’t do it.
GET A FREE INTEREST BEARING CHECKING ACCOUNT AND/OR SAVINGS ACCOUNT
Free checking accounts are getting harder to find. You will have to maintain a certain minimum balance or have a mortgage or some other “relationship” with banks now to get the goodies. But credit unions are still a good place to get deals. You also do not have to bank with the institution down the street. You can have an account with most any bank and even credit unions have relaxed their membership requirements. Search at Bankrate.com.
If the checking account option does not work then at least get a savings account. The goal is to have every penny working FOR you. I don’t care if the interest rates are pitiful right now…it is still money earning money! Wouldn’t you rather have MORE money? Yes please!
CHARGE MOST ITEMS TO YOUR CREDIT CARD
You can disregard this little piece of advice if you keep a balance on your credit card. It only works if you have a credit card without an annual fee AND you pay the total balance owed (on time!) each month. It is also nice if you have a card that gives you rewards of some sort.
The reasoning behind this one is that you purchase your items now and then pay for them later with zero interest (because you paid your entire balance). That is called a free loan where I come from. It doesn’t outright earn you interest, but it allows your money to continue to work for you longer.
You work hard. Shouldn’t your money do the same?