Over the last year, I’ve been reading up on personal finance–on blogs, books, podcasts (ok that’s listening, but you get the gist).
My goal last year was to stash away 6 months of living expenses. And as of last week, I’ve accomplished that (*high-fiving myself*).
So now, my new goal is to start using the money I do have to work FOR me (not just sit in a crazy .01% return savings account like it had been… I had no idea there were wayyyyy better options ’til I started Googling!)
Now, I consider myself a fairly intelligent person and responsible with money, but it turns out I had zero idea how many financial opportunities I’ve been losing out on.
For example, for those 6 month’s of expenses I saved, I learned I could put that money into a high yield savings account. So I did my research on NerdWallet and chose Ally Bank which offers a 1% APY. This means every year that it’s in savings your moolah makes 1% and then that number gets lumped into next year’s APY. So if you put in $5,000 to this account, after 1 year your bank balance makes 1% and becomes $5,050. Then the next year it becomes $5,100.50. (As a reminder, I was making one hundred times LESS that in my previous savings account at Bank of America. So in the same $5k scenario at Bank of America, you’d make 50 CENTS instead of 50 DOLLARS! #crazytown)
So if you’re like me (aka a personal finance beginner) and you’re feeling it’s time to take your money a little more seriously, start perusing Nerd Wallet or pick up an Amazon bestseller at the library.
And to get you started here’s a checklist with pretty graphics of 29 Money Misunderstandings That Are Losing You $$.
If you’re starting a new job, here’s 4 money things you gotta do at your new company.
And here’s 10 savings oopsies you should try your darndest to avoid.