Rebuilding Your Savings

Posted May 31, 2009 by Bernz

If you’ve seen your savings dwindle to an all-time low over the past few years then you’re not alone. Many people have been affected by the current recession and find that they have less cash on hand savings than at any other time during their lives. Rather than simply lamenting this fact the key thing is to get proactive and began to get your money working for you once again.

savings

When looking to rebuild your savings, the thing to do is to start small and start safe. Simply choose a small amount of money that you can afford to invest and put it away consistently into a savings account. While savings accounts don’t offer incredibly high rates of return, they are extremely safe and any amount of interest you earn will be more than you would if your money was stuck under your mattress or in a coffee can in your closet. Choosing to have a small amount of money deducted regularly from your paycheck and deposited into a savings account is a fantastic way to begin to rebuild your savings.

Another safe and secure investment is a CD, or certificate of deposit. The rates they offer are usually higher than those of savings accounts because they make you keep your money in them for specific periods of time. Once a CD is purchased, your money will stay in them and accumulate interest for the term of the particular CD and once the CD matures you will get your money back with the interest it earned. If you are tempted to take out your money before the end of the CD’s term you will face penalties which can negate the effect of these safe money making tools.

One way to limit the amount of time that all of your money is tied up in CDs is by the use of laddering. Laddering is a technique in which you invest your money in the purchase of several CDs of different terms thereby allowing you to get hold of your cash in timed increments. For instance, if you wanted to purchase $5000 worth of CDs, rather than put it all into a five-year CD you might put $1000 in a one year CD, $2000 in a three year CD, and another $2000 in a five-year CD.

By using simple safe and secure savings vehicles, you can quickly and easily begin rebuilding your savings after experiencing a financial loss.


More On This Topic:

5 Money Savings Tips You Can Benefit from Today
5 Money Savings Tips You Can Benefit from Today
The Lost Art of Savings
The Lost Art of Savings
Borrowing from your 401k Plan – Is it always the wrong thing to do?
Borrowing from your 401k Plan – Is it always the wrong thing to do?
Financial Literacy- Does It Still Work?
Financial Literacy- Does It Still Work?

2 Responses to “Rebuilding Your Savings”

  1. financial planning career Says:
    August 22nd, 2009 at 3:12 am

    financial planning career…

    Your topic Financial Planning Tips for New College Graduates was interesting when I found it on Saturday searching for financial planning career…

  2. Best Interest Rates On Savings Says:
    October 13th, 2010 at 11:00 pm

    Hi.
    I like Best Interest Rates On Savings.and so many people are using this Best Interest Rates on Savings.
    Choosing to have a small amount of money deducted regularly from your paycheck and deposited into a savings account is a fantastic way to begin to rebuild your savings.
    thanks.
    ======================================

    Best Interest Rates On Savings

Leave a Reply

(required)

(will not be published) (required)


« Back to text comment

Disclaimer:

All the articles and content written here on Invesmint.com is for general information only and based solely on the authors personal opinions and discretion. It was not and should not be a substitute for professional advice. Visitors of this site (Invesmint.com) are encouraged to seek appropriate professional advice before acting upon the content or information from this site. Again, the content of this website is not a source for professional advice.

INVESMINT.COM hereby excludes liability for any claims, losses, demands, or damages of any kind whatsoever with regard to any information, content, or services provided at our web site, including but not limited to direct, indirect, incidental, or consequential loss or damages, compensatory damages, loss of profits, or data, or otherwise.