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3 simple ways to start saving (and earning!) for your future

You know it’s time to take control of your savings and ultimately grow your wealth, but where on earth do you even start? Getting into the savings and investment game can seem daunting, as new savers face a plethora of options—stocks vs. bonds, how much risk to take on, who to bank with… it’s enough to prevent even those with money-smarts from diving right in.

If all those finance terms get your head swimming, fear not! Below is a simple process you can follow to get more bang back for your investment buck and start growing your savings today.

Save first, invest later.

Getting some solid savings under your belt is the most prudent way to start growing your wealth, especially if you’re new to the finance game. Growing that nest egg slowly but surely is the best road to financial security. Having a cash cushion will prevent you from being swept away by a financial crisis, like the one that happened in 2008, and generally, will make you less vulnerable to the ups and downs of the market. Some financial experts recommend at least six months worth of expenses saved up, but that’s a number that’s entirely up to you.

As they say, it all adds up, so choosing a savings plan that will yield the highest return is your best bet for a steady increase in wealth.

Consider a Certificate Account.

To guarantee an increase in your savings results without risk, consider putting some money into a Certificate Account at your local credit union. Fixed-rate certificates have a set interest rate over a predetermined length of time, that can vary from five months to five years. Certificates are seen as safe bets for saving or investing since they are federally-insured and returns are guaranteed. It’s a great way to start building your nest, risk-free.

And a bonus: APYs (Annual Percentage Yields) on Certificates of Deposit have been steadily increasing since 2015, after taking a hit during the financial crisis. For you, that means earning more money. For example, Lafayette Federal Credit Union offers certificates as high as3.34 percent APY (Annual Percentage Yield).* Compare that to your average 1.5-2 percent APY on regular savings accounts, and it’s a no-brainer which is the best bet to jump-start your savings returns. The longer the term of your certificate, the higher your fixed interest rate will be. Once the certificate matures, you can take the money out or roll it over for a new term.

Open up an Individual Retirement Account.

IRAs can come in a few different forms. You may have heard of a traditional or Roth IRA, but what about an IRA Certificate? This type of account offers a safer investment for those with low-risk tolerance, which means you will take fewer chances with your money. IRA Certificates differ from a traditional Certificate, as certain tax advantages are associated with a traditional or Roth IRA. It allows you to fund your savings with pre-tax earnings, while the account then grows on a tax-deferred basis. It’s considered a safe investment because your interest rate is not subject to fluctuations in the market.

Since this is money that you’re typically putting away for the very long term (retirement), your funds will be rolled over into another IRA investment once the IRA Certificate has matured. Alternatively, you can make a taxable withdrawal.

Ready to take your savings to the next level? Lafayette Federal Credit Union is currently running a promotion on Certificates and IRAs, with rates that are triple the national average. Kick your money into overdrive today!

*Visit www.lfcu.org/certificate for more information.

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