When someone completes their Debt Freedom March, they usually have freed up a ton of cash! This money used to go to lenders, but now it can be used for much more FUN things – like SAVINGS! Here are some of our recommendations for where to put the money while funding plans, hopes, and dreams.
On-line savings accounts are excellent places to earn higher interest on one’s emergency fund and known upcoming expense savings. Because they do not have many branches, they have lower costs and that translates to increased interest rates for their savings accounts. The on-line banks below typically have savings account interest rates that are seven to eight times the national average of the big banks.
Capital One 360 Savings………………
No Minimum Balance
Ally Bank ……………………
No minimum balance
Interest Compounded Daily
Perkstreet will give you 2% cash back on all your purchases that are made with their Visa Debit Card. They do not offer interest but these cash rewards are much better than the no rewards and no interest we get on most accounts.
Capital One 360
ING offers 0.25% on a basic checking account which is better than the 0 % most of us get with the regular banks.
Vanguard is the low cost leader in retirement investing and a great option for people who do not need an adviser to help them with their retirement planning. Beginning investors will typically need at least $3,000 to get started with Vanguard.
Fidelity is another low cost brokerage house and provides a little more guidance than Vanguard at a little higher cost. Beginning investors will typically need at least $2,500 to get started with Fidelity.
American Funds have repeatedly outpaced their peers in the mutual fund industry. They have low expense fees and an excellent selection of mutual funds. The great thing about AmericanFunds is that beginning investors need only $250 to get started. The not-so-great thing is that there is a 5.25% sales charge (load) on new invested money. But if you have no idea about investing, it is helpful to visit an investment advisor like Edward Jones (see below).
Edward Jones will meet with you for free and is a great way to get the help of an investing professional to guide you in your retirement investing decisions.
Joe Sangl, the founder of I Was Broke. Now I’m Not., personally has an Edward Jones investment advisor, and loves the fact that they are located throughout the United States in nearly every city and town. Click the link above to locate an agent in your area!
Saving for a child’s college education is the dream of many parents. A great way to accomplish this dream is to invest in a tax-advantaged 529 Plan. Every state in the US has its own 529 plan, but you can invest in any state’s plan. To find out more information on a 529 that best fits your needs you can:
If your state has income taxes, it can be very beneficial to invest using your state’s plan. This is because most states offer a tax deduction for 529 investments IF you choose to invest in your state’s plan.