May: Investing Money to Build Long-Term Wealth
In our January blog, we focused on reigning in on overspending and started working on building a budget for anticipated as well as unexpected expenses. In February, we took a look at the different types of savings options to assist you with developing an investment strategy based upon your needs and goals. Then in March, we took a closer look at a few ways where we could trim back on expenses to begin setting money aside for short and long-term savings. If you haven’t had a chance to browse these articles, we suggest you start with those, then come back here when you’re ready to put all that new cash to work for you.
Last month, we provided a few tips that could help the average American family potentially save over $600 per month simply by cutting or streamlining their expenses. Thanks in part to the dreaded (or cheered) Tax Day in April, we shifted the focus of this series to ways you can invest your tax refund for the biggest benefit. Now, we want to help you decide how best to use the money you began saving this year by reducing your expenses in order to build your long-term wealth. If you’ve been following this blog, you may have begun to uncover a few hundred dollars each month simply by reducing expenses and negotiating bills. While you certainly could deposit that money into a savings account and be better off than where you started, we want to help you use this newfound cash to support your long-term financial goals.
Here are a few easy ways to invest money that you were able to tap from prior monthly expenses:
|Pay down high-interest debt.||Consider investing money in a short-term CD.||Consult a financial advisor on creating a long-term investment strategy.|
|Until you are able to eliminate high-interest credit cards from your monthly payables, you won’t be able to focus on investing money. Try to chip away at this debt with the funds you’ve been able to save from cutting back on your monthly expenses.||Once you have accumulated a moderate savings, ideally $2,000 or more in cash, consider depositing it into a short-term CD. While there are several easy ways to invest money, this type of investment vehicle typically offers higher yields than a savings account along with a guaranteed rate based upon a term.||If you are looking to develop a long-term strategy for building wealth, then you should consider contacting a financial advisor who can provide the guidance and assistance to get you started. Depending on your needs, lifestyle, budget, age, and other factors, you may have several options available to choose from based upon your long-range goals.|
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