When people come into a lot of money, whether it’s through inheritance or their highest-paying job, they often think about where to store that money. After all, it’s wise to save and invest, so why not start now?
Money Storage: Where to Keep Your Coin
The trouble for most people is they don’t know where to turn for their money storage needs. They think that putting their money in any old savings account is a good decision.
However, there are safer ways to store your money. Moreover, there are ways to increase your wealth by placing your money wisely.
If you want to know more about how to do this, continue reading!
Money Storage 101: High-Yield Savings Account
High-yield savings accounts differ from traditional savings accounts in one fundamental way. What is that way, you ask? Essentially, more money comes into your account through a high-yield account.
In a typical checking account, you make approximately .01% APY. In a high-yield savings account, you can receive up to 1% APY. There are several benefits to these accounts, but chief among them is more access to your money.
They also prove excellent ways to grow an emergency fund, or maybe finance a trip. However, these accounts require a $5000 to $10,000 minimum to make the best APY.
An alternative to high-yield savings accounts is a certificate of deposit (also known as CDs). The primary difference between the two is that CDs require you to lock your money in for a fixed amount of time with fixed interest.
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If your CD’s interest rate is low, it’s often better to place your money in a savings account. If nothing else, it leaves you with more flexibility over your money.
When people think of investing money, they often think first of the stock market. The stock market can certainly increase your wealth; however, the ways it does so are complicated.
The stock market can be volatile, and if you invest poorly, you can lose a great deal of money. A safe option is to invest in precious metals. In particular, it’s a wise move to invest in gold.
When the market goes volatile, gold usually increases in value. As a result, storing your wealth at least partially in precious metals is a worthwhile move.
Since the 2008 recession, investors searched for alternative means of investment beyond stocks and federal bonds. Many investors discovered alternative currencies to be worthwhile investments.
The most famous of these alternative currencies, or cryptocurrencies, is Bitcoin. However, there are other alternative currencies you can find online.
To spend this currency, you need virtual debit cards. You can use virtual credit cards by installing their software on your computer.
There are several places available to meet your money storage needs. Whether you choose precious metals, savings accounts, or cryptocurrencies is up to you.
What matters ultimately is that you trust the storage you choose.
We hope this article was helpful to you! If you want more information on money storage, check out our other articles!
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