You’re in your twenties, young and full of energy, ready to take on the world. And probably by now, you’ve even started making a little money for yourself. And that’s great! But if you’re anything like me, you’re probably thinking, “So... What should I do with it?”
Don’t worry. There are tons of people new to the “adult game.” To give you a hand, we’ve listed out a few options so you can decide what best fits your savings lifestyle.
One option is to just save your extra money. Take a percentage out of your paycheck, however much you can afford, and keep it in a savings account. You can do this on your own, or ask your bank or credit union to set up an auto transfer if you’re afraid you’ll forget. This is a great way to save up for upcoming vacations, books for school, or even to start up a small emergency fund. Generally, most saving account
s are interest bearing, so you could end up earning a little extra on your balance each month. Overall, a savings account is just a great way to separate the money you want to use now from the money you want to use for something else later.
Another option for those trying to get a little more “bang for their buck” would be putting a set amount of money into a certificate of deposit (CD) so that the balance can accrue interest over time. The longer you let it sit, the more money you will earn. This is actually considered “investing
”! Don’t worry; it’s not actually very complicated or scary. There are usually some rules on CDs, like starting with a minimum balance and paying early withdrawal penalties if you pull your money out before the maturity date, so make sure you don’t have immediate plans for the money you’re putting into that account. Check out Greater Nevada’s rates
to see how much you could be earning by locking in a portion of your extra cash.
Since we’re on the topic of waiting for your money to turn into something even more beneficial over time, a different option may be putting your money into an Individual Retirement Account (IRA). There are different types of IRAs, so make sure you understand your options, and then decide which kind works for you. Retirement may seem like another world away, but it’s never too early to get a head start planning for the future. Think of it as a gift from “now you”, to “future you”. Trust me, you’ll thank yourself for it later!
Or, to help you figure out which of these is best for you, simply seek professional advice. Greater Nevada Financial Services
charges no consultation fee and offers financial advisors who are here to help you reach your financial goals whether it’s for paying for college, your first home, or setting up a retirement account.
Whatever your goals and plans are, it is never too early to start saving and the earlier you start the better!