Monday, September 21, 2009

Banking

Today Laura and I have been talking a lot about banking and where to put our money so we can have the best return. The two things you want to think about when managing money is the Potential Return and the Potential Risk. In other words, you want to put your money somewhere where you can make the most money possible with the least amount of chance that you're going to lose it. An example of a High Return and High Risk investment is buying stock from small businesses.

Anyway, we were looking at CD's to put some money in for 6 months, but we are finding out that interest for CD's isn't very impressive. We've been told to look into Money Market Accounts. Apparently, the interest is a lot better right now. We'll keep you posted if we learn something interesting.

Oh, we've also seen that Credit Unions have much more attractive rates than regular Banks. It might be a good idea to look into those as well. Maybe having an account in both places would be smart.

1 comment:

  1. A good idea I've heard is to build up an emergency fund of $500 to $1000 dollars in a separate savings account.

    If you put the money aside and don't touch it, only in an emergency (such as a car crash or a computer burnout), then when such a thing happens you don't have to dip into your credit cards.

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