Once you built some cushion in your bank account — you're on the right path. Learning how to cut expenses can only get you so far, it's time to think about longer-term financial goals. What’s the next step you should take? Here are ways to take your finances to the next level:
1. Build an Emergency Fund
Having money in the bank for emergencies can help you improve your financial standing. You'll want three to six months' worth of expenses in your emergency fund. Be sure to stash your money in the right savings account that'll grow your money.
This is another way to invest your 1,000 dollars. It’s much more profitable than the normal savings account. Your money can sit in there and accrue some interest until you are ready to invest in bigger and more profitable ventures.
Most experts recommend CIT Platinum Savings which is a high-interest savings account from CIT Bank. It offers one of the highest APYs on the market. The account has two tiers: a low tier of 0.25% APY and an upper tier of 5.05% APY. To qualify for the upper tier, you must maintain a minimum balance of $5,000.
The account has no account maintenance fees and a minimum initial deposit of $100. Customers can make an unlimited number of transfers and withdrawals each month.
Other features of the account include:
- Competitive interest rates
- Digital convenience
- No monthly service fees
- CIT Bank's mobile app makes it easy to manage your account
Here you can a very impressive 5.05% annual percentage yield which is an APY that’s much higher than the national average.
CIT Platinum Savings is a high-interest savings account from CIT Bank. It offers one of the highest APYs on the market. The account has two tiers: a low tier of 0.25% APY and an upper tier of 5.05% APY. To qualify for the upper tier, you must maintain a minimum balance of $5,000.
2. Evaluate Your Checking Account
Many large financial institutions charge monthly maintenance fees that are usually between $7 to $12. So, talk to your bank about this to see if they offer a fee-free account or learn about the requirements to avoid the monthly checking account fees.
If they don’t cooperate with you, it's time to switch to a better bank like Axos Bank.
Axos Bank Rewards Checking account pays up to 3.30% APY total; however, balances above $50,000 do not earn interest. Although the rate is very competitive, you will have to complete some additional steps to earn the full APY.
After you meet certain transaction or direct deposit qualifications within a statement cycle, you will have access to increased earning potential at one of the five rewards tiers.
In addition to interest earnings, account holders can take advantage of surcharge-free ATM withdrawals at approximately 91,000 ATMs across the country. Plus, the bank offers unlimited domestic ATM fee reimbursement.
This account not only provides helpful online and mobile features for daily money management, but also allows you to manage your debit card, set up auto-pay for bills, and pay friends and family–all from your account dashboard.
At Axos, it's easy to open an account and there are no fees for insufficient funds.
3. Get Free Stocks Instantly
While you're at it, why not increase your net worth with free stocks?
Robinhood is a free investing app for your phone. I really mean free all around – free to join and they don’t charge any fees to buy or sell the stock.
Better yet, if you join through this link you can get a free stock like Apple, Ford, or Sprint when you join (must complete signup).
The value of the free share may be anywhere between $2.50 and $200 and fluctuates based on market movements.
You’ve got nothing to lose.
4. Start Building Passive Income
Arrived is a great real estate investing platform to use if you want a low minimum investment threshold for real estate investing. You can get started with as little as $100!
It’s an especially useful tool to use if you want to diversify your portfolio and have someone else handle all the work that comes with being a landlord. All you really need to do is sign up, and collect your rental income each quarter.
The management fee is a modest 1% asset management fee, but it's worth it considering how easy it is to get started. You can sign up for free and view the different properties available to invest in. Buy shares of properties, earn rental income and appreciation — let Arrived take care of the rest.
Then you can literally beat the stock market year after year and start making money in your sleep. If you want to earn the big bucks then you can learn how to get started by getting more information from Arrived here.
5. Leave Your Family $1M
Who doesn't want to be a millionaire?
While we don't all have trust funds waiting for us, there is still a way to provide protection for your loved ones with up to $1 million in term life insurance.
Wouldn’t it be great if you could do this for as little as $8 a month without dealing with all the hassle of wasting your time or money?
You don't have to have money in your pockets to get a free quote from the best life insurance companies:
Once you have saved $1,000 in your checking account you can make smarter financial decisions by doing these 5 things.
- Turn your everyday savings into so much more. A CIT Bank Platinum Savings account helps you get more from your savings with interest rates for maximum growth.
- Earn and save more every single day compared to big banks. An Axos Bank Rewards Checking account has no monthly fees, minimum deposits, or overdraft fees.
- You have a 100% chance of getting a free stock when you sign up for Robinhood and link your bank account. A surprise stock (up to $200 in value) appears in your account.
- Over $79 million net dividends earned by investors since 2014. Access real estate's historically consistent return potential with Fundrise.
- Life insurance companies like Haven Life use data to remove doctor visits and paper work of traditional life insurance, offering you an affordable plan without the hassle.
Financial Planning Tips to Remember
If you’re an ambitious saver who wants to take control of their finances, you should know that time is still on your side. However, if you keep procrastinating, it won’t be there by your side for a long time. You have to build the resources which you require for achieving whatever you want in life and this is not that complicated.
In fact, the sooner you start, the better off it is for you. If you make the mistake of waiting for too long till you reach your 40s or 50s, you will probably need to save and invest a bigger portion of your income.
Here are some financial planning tips and that'll help you gain confidence, shed off the doubts that are keeping you from taking the first step of reaching financial independence.
Stop living paycheck-to-paycheck
The foremost step that you need to take is to figure out where exactly you require curbing down costs, even when that means by a few dollars here and there. The best way in which you can begin this is by tracking where exactly you’ll be spending your dollars. What are the ways in which you can set goals and make changes to your spending? Once you determine this, you can start off saving in the most appropriate way.
Have at least 3 month’s pay in your account
So, do you have this much of a cushion in your savings account that if you stop working for some unanticipated reason like a sudden accident or a job loss or an illness, you’ll be able to live properly? If you still don’t save your emergency fund in a high-yield savings account, you should start doing it as soon as possible as this is the place where you can earn pretty high rates rather than the majority of the traditional savings accounts.
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Save as much as possible in your retirement accounts
Would you love to spend your retired life applying for online loans in order to bridge the gap between your income and expenses? Certainly not! Retired life is not the time to add on to your debt level but rather it is the time when you should pay back all your debts and live a peaceful and happy life. Hence, you should maximize your retirement account saving as much as possible in order to live financially free.
Don’t invest in a single nest-egg
The experts always suggest that when you diversify your investments into stock mutual funds which are based on a broader perspective, this will help you diminish your risk. The market is bound to drop at some time and when it does, you can minimize the extent of your losses when your portfolio is properly diversified. When you’re young and when you’re already an investor, you have enough time to recover from a drip in the market. Hence, make sure you don’t panic and sell off things when the market falls.
You have to understand the above aspects of your financial life if you want to lead a happy and prosperous life after retiring. Get the help of a financial advisor who can give you the best advice or continue to educate yourself by learning how to live cheap and saving more money each month. It's definitely possible to grow your nest egg of $1,000 into $5,000 then $10,000! The only thing stopping you is you — so go out there and continue to make smarter financial decisions.