Work Smarter not harder

There are many options out there for saving your money. The most common is probably your standard savings account CDs, or a money market fund; these savings vehicles normally pay low interest rates but are typically insured by the FDIC (Federal Deposit Insurance Corporation). What typically happens with these accounts in reality is that you loan XYZ bank your deposit to turn around and loan out for a higher return. The key to getting a good return on your money is ownership, not loaner-ship. What do most people own to get these higher returns… Stocks. But, aren’t stocks risky? Yes, more risky than your savings account, but often time’s inflation (the devaluation of money) grows faster than the money in your savings account. Remember that term mutual fund I have mentioned a couple of times. Mutual funds are collective pools of different peoples money put together, and invested into a basket of different stocks. These funds are managed by professionals who do nothing more than analyze these stocks for the fund. There are many investment options within the realm of mutual funds, but you need to open one of these for your 10% fund. Typically you need between $1000-$2500 minimum investment to open one of these, yes it sounds daunting but start in your savings account and after a year or two when you have the minimum investment open a mutual fund. It will make your life better 5, 10, or 20 years down the road.