I love my job. I’m a freelance financial writer and editor, and since I started this job, I’ve learned how to budget, use different financial accounts, and save money in my daily life. Here are the top 3 tips I’ve gathered over the years. I’m sure it will be useful for you too.
1. Online banks have great features
In 2024, banking has become digital. What does this mean for you? With a few exceptions (more on this below), you no longer need to choose a bank with a branch in your neighborhood. Choose a bank that exists entirely on the internet and enjoy a wide range of perks and benefits.
Online banks do not have branches you can visit. This is the biggest difference between online banks and traditional banks. But branches are expensive, so you’ll often be charged a monthly maintenance fee and end up earning a hefty APY on your branch-based bank savings. Online banks can afford higher APYs and charge minimal fees.
I earn 4.00% APY from my online bank savings. You can too. Click here to see our favorite high-yield savings accounts and choose the one that’s right for you.
Online banks also give you access to modern mobile apps that let you deposit checks, transfer money, and even use a piggy bank. And while customer service may not be in-person, it may be available 24/7. Oh, and online banks aren’t even as “safe” as your neighborhood bank. Online banks are also subject to the jurisdiction of the FDIC.
So when should you not choose an online bank?
Cash is king for you anyway
Online banks can pose problems if you frequently handle cash, especially if you make cash deposits. Many do not accept cash deposits. A workaround is to deposit the cash at another bank and then transfer it to your online bank. This is a hassle that you don’t want to do, especially if you need to do it frequently.
I like face-to-face support
Another reason for not choosing an online bank is the in-person customer service that online banks don’t offer. If it’s really important to you to have the option to speak to a human in person when you have questions about your account, you should choose a branch-based bank instead. However, we recommend evaluating the savings rate and other features to find what’s best for you.
2. Investing doesn’t have to be complicated
I’m completely new to the world of investing, and one of the reasons I’ve been hesitant for so long (besides not having any extra money to invest, more on that later) is that Because it seemed difficult to understand. I didn’t like the idea of sending my hard-earned money to a stockbroker and not really knowing where it was, what I was investing it in, and even if I could lose it all. Ta.
Good news — investing is easy. The best stock brokers make it easy and cheap to open an account and get started.
And if the thought of picking stocks terrifies you, you can choose to invest in exchange-traded funds (ETFs) instead. These track the performance of a specific stock index, such as the S&P 500. Also, the S&P 500 has posted an annualized return of almost 10% over the past 50 years, so if you can invest for the long term (ideally at least 5-10 years), you have a good chance of coming out ahead.
3. It’s never too late to start fresh with your money.
This last piece of advice is especially personal to me. All my adult life, I’ve made low wages in jobs that required a graduate degree, battled debt, and lived paycheck to paycheck.
However, the turning point for me was when I changed careers and started working as a freelancer here at The Ascent. I was able to do the following:
Pay off debt (increase your credit score by 100 points in the process) Save money for emergencies and buy a home again (a goal you achieved earlier this year) Finally invest for retirement as of 2 months ago start
And I’m not a kid straight out of college either. I moved on after working at a non-profit museum for over 10 years and holding executive level positions. I turned 40 this year, and popular culture tends to think that 40 is too old to make these changes in your life. it’s not. It’s never too late to improve your situation and learn how to manage your money.
I wish I had more financial stability in my 20s and 30s, but it’s still worth it. If you had asked me at age 35 if I would ever own a home again or have a retirement account or emergency fund, she would have laughed and said no. But at 40 years old, I have something like that.
What I’ve learned so far as a finance writer has made me happier and more secure in how I manage my money, and given me the confidence to help others. I’m interested to see what happens in the next few years.
