Spending all the money you worked hard to earn by the end of the month is as easy and enjoyable as receiving it. All it would take is to purchase whatever you want, not being considerate about the future. Unfortunately, the one problem that always exists with managing money is that people don’t plan their budget and fail to put enough away.
For instance, nearly 22 percent of Americans were found to have saved less than $5,000 saved for retirement by Northwestern Mutual’s 2019 Planning and Progress Study. Additionally, five percent of people in the US had put away less than $25,000, and 15 percent had no retirement savings at all.
This is truly startling and upsetting as there are numerous reasons why you would have to save for the future. It isn’t just about retirement even. The future might have plenty of surprises in store for you, and you don’t want to go unprepared.
Savings is one way to break from your usual paycheck-to-paycheck cycle. It will also help you handle big purchases down the road, such as a vacation, vehicle, or a house. If you have already gathered together some savings, the next step you should take is to put it to good use in a way that multiplies.
Between today and the end of your income-earning days, various things are bound to happen. You might take a pay decrease, become unable to work, or lose your job. Strategizing your savings will help you secure your future. It is also one of the best things you can do with your hard-earned money.
Without further ado, here are three low-risk strategies to increase your savings.
1. Switch to High-Interest Savings Account
Now, this account isn’t a feature of every bank. So, you will have to find the ideal bank that offers these unique, high-interest savings accounts. As the name suggests, the primary difference between this account and traditional accounts is that the former offer higher interest rates than the latter.
If you wish to leverage this type of savings account, online banks would be the best place to get started. Online banks that offer high-interest savings accounts will further help you save more as the monthly fees and other charges are minimal because they don’t have the expenses associated with operating brick-and-mortar branches. In some cases, the offer rates go ten times higher than traditional banks.
Another reason why you should work with online banks is that it will keep your savings out of sight and out of mind. Meaning, you will be less tempted to spend your savings.
2. Indulge in Sports Betting
If you have wagered on sports events at least once in your life, you might have thought if you could possibly make a living from sports betting. While most people will tell you a flat-out “NO,” the truth is that you can earn profits, if not make a living from sports betting, provided you know how to play right.
There sure are legit ways to earn money from sports betting. Nevertheless, there are certain precautions you need to take. This includes devoting your time and effort to the practice.
When you are betting to earn a profit, you will have to bet like a pro. Meaning you shouldn’t use your emotions to decide where to wager or bet on sports just to satisfy your addiction. Furthermore, you should ensure you are betting on the best sportsbooks. One ideal way of doing that is by choosing online sports betting sites that give you a fair chance to win.
The best sports books are licensed, safe, and reputable. They also offer competitive odds and are sometimes better than brick-and-mortar shops. What’s more, you will also be able to take advantage of free bets and bonuses regularly.
3. Consider Investing in Bonds
If a tiny risk of restriction on your withdrawals doesn’t bother you, buying bonds using your savings would be a better option than investing in a traditional savings account. Purchasing a bond is quite similar to making a loan to the government or firm that issues it.
After your bond matures, you will get to bag your principal and the interest from it. The ideal way to enter this arena is by buying U.S. Savings or Treasury bonds. You can also opt to invest in bonds issued by major companies. Nevertheless, make sure the companies are well-reputed.
Typically, each bond comes with varying interest rates and repayment terms. Riskier bonds often offer the highest rates. Additionally, corporate bonds and longer terms that have higher default risk also feature higher yields.
When investing in bonds, one thing to be wary about is that their value can fall when the market rates increase. Such a scenario might lead to you selling your bond before it matures. This will result in you earning less than what you bought the bond for.