What I learned About the best Ways of Saving Money

Disclaimer

Here on Selfmadesns.com I’m only giving you my life experiences. So, you may learn and benefit from my mistakes along the way. As well as learn from all of the good decisions I made. What may work for me in some different experiences is not always what you should be doing on your own. Always do your own research or speak with a professional on the subject. Better yet do both guys. It will be way more beneficial for you at the end of the day. If you want more information on our terms, please visit our terms and conditions page along with the privacy policy page as well.

I remember when I use to saving my money up. I would have thousands of dollars in my home. Sometimes I would show my nephews and nieces to motivate them to learn a way to save their money. But as I learned money about how money works, I saw I wasn’t all the way right. Yes, saving money is a very positive thing to do. And we should all be doing it. But guess what my friends, there’s a better way to do this! Let me share with you guys really quick.

Savings

Now I know must of you guys would probably guess a savings account, and you would be half right. Them are pretty good but what about a high yielding savings account? The interest rate is going to be much higher than your regular old savings account. If that doesn’t seem like your cup of tea ‘ don’t worry, I have more for you guys. Do you guys know about CD’s and not the ones you put into your radio. These CD’s that stand for Certificates of Deposit are another good place to place your money. The good thing about these is that they come with a fixed interest rate, so you know what to expect at the end of the day. If you want more, I got you! Let me tell you about Money Market Accounts. They also come with higher interest rates than your regular savings. Another good thing about the account is that you can write checks from it. Another place I think you guys should know about is Treasury Securities. These are a very safe place to put your money because they are backed by the U.S government.

More Savings

Let talk a little more guys about a few more places you can place your money you want to save. Next up we have Roth IRA. These are a very good place to put your money especially if you don’t plan on using it for a while. They can with a few drawbacks but overall, it a good place. Next, we have Index Funds and Mutual Funds. The best thing about these is that they are managed by professionals. This next one is going to be great if you want to save for your kids’ education. I’m talking about the 529 College Savings Plans. This has some very good tax-advantages for education. The last one I want to share with you guys is the Health Savings Accounts. These have Triple tax advantages for you.

Bonus

Today we will be speaking on retirement plans and which might be best for you for our bonus part of the post. Some of you may be older and set into your retirement plans already, which is better than no plan. Some of you maybe young enough and still have time to pick a plan that’s best for you. Let’s not forget about you guys in the middle age group. Who maybe be and one plan and can still switch if you see fit. So, that’s why I’m here, to help you better understand all your options that’s out there. Let’s get right to these options for my friends.

The first one up on the retirement plan accounts is the traditional IRA account. So, some of the details to a traditional IRA account is that this account allows you to put money that hasn’t been taxed yet into the account. So, this money will be coming out of your paycheck for most people. You can watch this investment account grow tax-deferred just until you withdraw for your retirement. It’s best you leave this money in the account until you reached retirement age. If you don’t, you will be heavily taxed on it if you decide to touch it sooner. If you do wait you will still be taxed. Just at your normal income tax rate. Capital gains or the taxes on your dividends are not assessed as well. Something else to know is that there’s a contribution limit of 6k a month until you’re 50 years old. After you turn 50 it goes to 7k a month.

  Next up for you guys I have the Roth IRA account. Some details are the same as the traditional Ira account. So, we will go over the differences in the two accounts and what makes this one special. The first big difference is that all the contributions to this account will come out of your money from your paycheck that has been taxed. Since the money is taxed already, it’s will basically be treated like a savings account. But if the account makes money, you cannot withdraw without it being taxed. Unless you wait until your retirement age, then it will all be tax free. Not bad huh? Sounds like a great deal to me my friends.

  Our last option that we have to talk about is the 401k account. Again, very similar to your traditional Ira account. Basically, a 401k account is the same, its contributions come from pre-taxed income. Only a few differences. One is that this is an employer-based account. Also, the contributions can be matched by the employer up to an amount guy. For example, if you’re putting in 3% of your check than your employer will match it with 3%.

  There you have it guys 3 different types of retirement plans. This was just to show you guys that there are options out there for you guys. Try and see where you want to be when you reach your retirement age and base your plan off that. Any plan is better than no plans guys.

Summary

What I learned was that money is really no good just laying around. Especially when it can be making money for you. If you place your money in the right places, it can do just that. However, I hope I was able to help someone out there today. Hopefully you guys also found the bonus part of this post just as helpful as the main part of the post. Thanks for your time and the visit today. Please come back and tell your friends about the blog. If you guys want me to talk more about any of these just leave it in the comments! Good luck out there!