As we walk through our journey here on earth, money keeps us afloat in our daily journey, and it is one of our power sources here on earth.
The more money, the more purchasing power we have, and with the guidance from the Holy Spirit we’ll be able to manage our finances really well.
Supporting scriptures: Deuteronomy 15:6
One way to steward our finances is through savings and to some they want their finances to work for them that’s why they often save or put their money into an interest-earning account where the risk of losing your deposit is very low. Although to risk-takers they invest in stocks, bonds, and other markets that offer exponential growth in terms of turnover.
What are the six most common and ideal platforms to put our money in?
Regular Savings Account
Financial Institutions offer this type of savings platform and it comes in different forms such as ATM, Debit Card, Passbook, or a combination. The money deposited in your account is protected by the government finance service in case of an unexpected turn of events.
High-Yield Savings
This is a type of savings account, it is also protected by the government finance service, and this one earns much higher interest compared to a regular savings account. Usually, the minimum requirement for this account is that you must have an existing savings account to avail yourself of High-yield savings.
Certificates of Deposit (CDs) or Timed Deposits
An account commonly offered by banks and credit unions. Just like the regular savings account, these too are government-insured but technically they offer a much larger amount of interest rates, especially if the case is with bigger and longer-term deposits.
The important reminder with a timed deposit is that you’ll have to keep the money inside the account for a specified period of time; or else you will be charged a fine.
There is a common longevity period of CDs or TDs, either 6 months, 1 year, or up to 5 years.
Money Market Mutual Funds
This is a type of savings/investment platform where mutual funds are invested in low-risk investments. With this, the money market mutual funds are considered one of the lowest risk types of investments. MMMF is typically offering a return comparable to short-term interest rates.
Money Market Deposit Accounts
This type of platform is coherent with the MMMF and they are commonly offered by banks which usually require a bare minimum in terms of the initial deposit and maintaining balance. But unlike MMMF, money market deposit accounts are government insured. However, as your account grows you should maintain a certain amount otherwise you’ll pay a penalty.
Bonds
A Bond is a type of savings/investment which is also a low-risk debt investment, it is like an IOU or a personal loan, which is availed by certain companies, municipalities, states, and government institutions or departments to fund specific projects. A bond has fixed time in terms of payment and interest, which offers low-risk investments.
Reminders…
Savings and investment allow you to save and grow your money exponentially, that’s why the saying “let your money work for you”, really is the way to go. Before availing any savings research with the essential facts, such as track-record, premium benefits, and stability of the institution beforehand, but of course, save!
KEY POINTS TO REMIND YOURSELF.
- Before availing and a savings account, research about it and seek guidance from the Holy Spirit and from a financial advisor.
- Save but do not forget to have insurance.
- Save as much as possible.
There you have it, friends, always seek guidance from the Holy Spirit and experts so that you’ll know where to put your money. Stay tuned for more!