If you don't have some sort of side-hustle, you should consider yourself lucky. In fact, today's economy has been dubbed the "gig-economy". Millenials and Gen X alike have found themselves searching for alternative sources of income. But whatever happened to good, old-fashioned saving? Think you've tried everything? Think again.
One of the new tips out there is investing in CDs. No, I'm not talking about the ancestors to digital downloads. CDs are Certificates of Deposit. Think of these as savings accounts that you're not allowed to touch. Apparently you can get CDs for different cycle lengths. You're not allowed to touch the money until that cycle is up unless you want to pay a penalty. Once the cycle is up you have the option to cash out your original investment plus a heftier-than-normal chunk of interest OR you can re-invest it back into another CD.
It's a Certificate of Deposit. It's like savings with faster returns. For ex.: you buy a $500 CD on an 18-month cycle- which means you can't access that $500 (without penalty) for 18 months but it gains a higher interest rate than average savings.— Ada Donawa (@JewelOfNubia) June 2, 2018
At the end of that cycle you have the $500 + the interest it's gained - and you can either "cash it in" & get your return or put it back into a cycle. (They have 18 months/6months etc)— Ada Donawa (@JewelOfNubia) June 2, 2018
my grandfather set up a CD for me when I was born. couldn't touch it until I was 18. by the time I graduated college, it was worth $5k and is how I got my first apartment. definitely taught me the value of investing because I hadn't learned to save like that myself!— ✨ drinkerbell ✨ (@tealshauck) June 2, 2018
If you must.. tell your bank to not allow you to access your money until a certain date. If an emergency happens, or you run out, it will give you the burst of energy & creativity to hustle that only rock bottom can give somebody with ambition without having to actually be broke.— DEUS iRA💧 (@OurGODofWRATH) June 1, 2018
But not everyone thinks they're the best way.
I was about to say that. Also the penalties seems to be higher than interest earned. Which leads me to think that is another way for them to make a profit off of you.— Z a k (@wutang_zak) June 2, 2018
Mutual Funds! CD’s at the bank are lucky to pay 1-2% interest. $250/mo at 9% for 40yrs is $1.17 MILLION. Everyone can retire a millionaire (Rule of 72).— Collin Maple (@Social_Cougar) June 2, 2018
Some people recommend multiple accounts designated for different things.
Have several accounts at different banks 1. Bill acct no debit card 2. Main savings separate bank online no debit card 3. Spending account with debit set amount to spend every 2wks 4. Petty savings of u absolutely need a float til pay day and if u get comfy 5. Travel fund— Kitty (@ItsKittyBabee) June 2, 2018
I do this. I have 1 account that I don't have a card for so I just put a little money on it every time I get something, 1 account for paying my loan I put on a little more than the loan takes so it builds slowly and 1 that I use consistently but never let drop below $1000— J. (@GothiQ_haQer) June 2, 2018
I just got my first ACTUAL job and i get paid a pretty chunka change, so i’ve been splitting my paycheck in half and putting it in separate accounts in my bank. before, when i was doing odd jobs and making money here and there, i would separate it into jars or labeled envelopes -— Joey 🥐@SuperconFTL (@BreadSharks) June 2, 2018
In 2018, you can't be surprised that people are choosing apps to help them boost their savings.
My latest favorite trick is using Acorns. It rounds up my purchases & puts the extra change in savings. So if i spend $4.35 at Starbucks, it rounds it up to $5 & puts $0.65 in savings. Every little bit adds up & you don’t even notice it happening. 🙌🏼💰📈https://t.co/ATcEOP26HO pic.twitter.com/SB3TpK9b3d— 🔙2️⃣⛎ (@SelOnTheBrain) June 2, 2018
I use an app called Qapital that does what Acorns does but actually saves it for you in a superset bank account! And you can set rules other than just rounding up your charges. I love it— Lauren Kwan 💀🌻 (@kwanatronn) June 2, 2018
It’s called digit it saves your money for you automatically. It pulls a couple dollars here and there and before you know it you save Hella— 🇳🇬Henny Hardaway🇳🇬 (@2Coolington) June 2, 2018
So whether you're a "set and forget" type, someone who likes to have their finances organized, or you just want your phone to take care of it for you, there are many fantastic ways to save for your future!
i’m going to try this with my next paycheck. i make good money, but i treat myself waaaaay too much so maybe it’ll be a good experiment for me to test out.— 🕷ジャミソン 🕷 (@elvenwitch_) June 2, 2018
This thread is amazing. I suck at being responsible with my money. I always justify my spending because I work hard so I “deserve it”. Trying to buy a house so thanks for the tips!— Geena✨ (@geena_annette) June 2, 2018