If you’re still rarely leaving the house (as is the case for many of us), you’re likely saving money. Why not take this a step further and review your money habits to save even more?
Here are a few simple financial moves to consider as you ride this pandemic out:
One of the easiest and most effective ways to save is to set up automatic savings where you’ve got a process in place to save at regular intervals.
Instruct your employer to direct a certain amount from your paycheck each pay period and transfer it to a retirement or savings account (or both).
Max out tax-advantaged retirement accounts
If ever there was a time to get serious about retirement, it’s now. One of the most straightforward ways to catch up on retirement savings is to contribute the most money you can to tax-advantaged accounts. That means maxing out the 401(k)s (at least contribute enough to capture the company match), individual retirement accounts (IRAs), or Roth IRAs.
Review your rainy day savings
How much is in your account and are you getting the best possible rate? The reason we ask is because rates are falling and this has many of you asking: is a high-yield savings account even worth it any more?
The short answer is yes, providing you’re willing to look into establishing a high-yield checking account.
These accounts are currently advertising annual percentage yields (APYs) as high as 4% (assuming you maintain a certain minimum balance and meet other criteria) whereas the average interest rate for a regular bank checking account is just 0.06%.