No one knows exactly how much interest rates will change or how quickly inflation will go up, so you always want to be strategic about where you put your hard-earned cash. Growing your wealth may feel like a lofty goal when you are surrounded by economic uncertainty, but there are many metaphorical piggy banks in which you can put your pennies.
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It’s time to take control of your paycheck and other income and improve your savings strategy. Here are some smart moves you can make this summer.
Set up a “pay yourself first” system if you haven’t already. A portion of each paycheck should automatically go to your savings accounts. This way, you don’t even have to get into the habit of contributing to your savings. You don’t have to think about it, and you won’t be tempted to spend money that will be better used earning interest.
You should always be aiming to max out retirement accounts like 401(k)s and IRAs. You’ll get the most benefit out of compounding interest and the tax advantages when you hit retirement age.
The contribution limit for a 401(k) in 2025 is $23,500. So you’ll be able to invest a good chunk, and if your employer matches contributions, even better. You’ll want to take full advantage of any “free money” they offer and don’t leave any on the table.
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It’s always a great idea to get rid of any debt you have as fast as you can. If you’re able, make bigger payments than you need to on your mortgage, car loan or student loans. You could save thousands in interest and get debt-free faster.
Shop around for a good high-yield savings account. There are a lot of banks and credit unions out there that are online only, and they can offer higher interest rates than most brick-and-mortar banks. Every bank is different, and they all offer different perks and rates.
Some give you better rates for larger deposits, while others have great sign-up bonuses. So don’t put all your savings in one place. Open two to three accounts at different online banks. Then keep track of the different interest rates as they change, and move your money between them as needed so you’re always getting the best deal.
I Bonds are a kind of savings bond issued by the federal government. The interest rate changes every six months to match inflation. This makes them perfect for protecting your savings from losing value.
