May 20th is Be a Millionaire Day, a day dedicated to financial freedom! It’s also a great time to think about your finances and how you can grow and improve them. Whether or not you hit millionaire status one day (and I hope you do), there are certainly ways you can be smarter with your money and improve your financial stability. I’m partnering with Discover to share some tips to help you on your journey to greater financial security.
Increase your savings account contributions. If you’re not disciplined enough to make regular deposits, try letting the bank do it for you. I’ve saved hundreds just by setting up an automatic monthly transfer from my checking account to my savings account. Also, be sure to take a look at the interest rate you’re receiving, and see if you can do better elsewhere.
A Discover Savings Account offers a savings rate of 0.95 percent, five times the national average. For example, interest earned on a $5,000 investment with a Discover online savings account would net you $47.73 per year, versus just $0.50 at the industry standard of a 0.01% interest rate.
Review your financial portfolio and investments.
If you’re ready to jump from a savings account, to something with an even better return rate, look at different Certificate of Deposit (CD) options:
–A Discover Individual Retirement Account CD allows you to choose from either a Roth or Traditional IRA CD and has no monthly maintenance fees.
–A Discover Certificate of Deposit can be opened with as little as $2,500 and has flexible terms, from 3 months to 10 years.
Contribute to a 401K. Start one if you haven’t already, and try to make the maximum allowable contribution each year.
Review and refresh your budget regularly to incorporate ways to spend less and save more.
Prioritize your purchases. Before buying something, think of a stranger offering you a choice of that item or the cash equivalent. Which would you rather have? If you’d rather have the cash, you should probably rethink the purchase.
Refrain from impulse purchases. Take some time to think it over and/or find it somewhere else for less. You might discover you don’t really want it anyhow.
Even if you never become a millionaire, you can become financially stable, and isn’t that what we all want?
What steps are you taking to ensure your financial security? Do you have a savings account, CD’s or a 401K?