Where Should You Put Your Hard-Earned Cash?

Today, many people take their paycheck and run with it, leaving little to no cash to actually put anywhere and save. In fact, over 3/4 of Americans are living paycheck to paycheck, meaning that these people don’t have any sort of money stashed away.

But you don’t have to be part of that majority. If you want to save your cash for the future, check out these great places to put it.

Savings Account

A savings account is so obvious, it probably shouldn’t even be on the list, but we’re going to look at a few benefits of putting your hard-earned cash in savings.

  1. You can withdraw your money at any time, meaning that if you have an emergency, you’re not penalized for using your own money.
  2. You don’t have to have a lot of money to invest in a savings account, and fees are minimal.
  3. Your money is insured, often up to $250,000, so you can feel safe about putting your money in a savings account.
  4. You can earn money on interest rates when you let it sit for long periods of time.

So if you want to start saving up your money, a savings account should be one of your first choices.


What if you want to do more with your cash than just save it? What if you want to make money from it? Luckily, there are easy ways to do that. With investments such as stocks, although somewhat of a gamble, you can put your money into promising companies and make a profit when you’re ready to sell those stocks.

Forbes.com reports that the average yield for preferred stocks is 5.4 percent, although there are plenty of stocks that you can invest in to help you make more than that. When compared to savings accounts, which have an average interest rate around .2 percent, stocks are a better place to put your money if you want to watch your hard-earned cash accumulate with.

If you choose to go this route, consider hiring a stockbroker to help you get started, and if you accumulate enough stocks that you need help managing them, consider turning to an investment management companies. Do some cursory research on the web presence for any company you’re considering; for example, check out the Fisher Investments Crunchbase profile to better understand its philosophy and approach.

Certificates of Deposit (CDs)

The problem with stocks is that they’re risky. You can follow trends, but that doesn’t mean that something dire won’t happen and you’ll lose all your investments. If you want security, turn to CDs.

A certificate of deposit is similar to a savings account because it insured, so it’s a more secure investment, and it’s “money in the bank.” There’s a few things that make them different, however. Let’s look at how CDs are different from savings accounts:

  1. They have a fixed term and a fixed interest rate, meaning that you can’t withdraw money until the CD has matured.
  2. Their interest rates run higher than savings accounts, so you’ll make more money in the long-run.
  3. Oftentimes, you need a good chunk of cash to invest in a CD.

Despite these differences, CDs come with many benefits if you’re using them for the right purpose. If you want to make money off your investments, this is a better choice than a savings account, but if you want access to your money, this isn’t the best choice.


An individual retirement account (IRA) is a spectacular place to put your money if you’re planning for the future. It’s basically a savings account that you’ll have access to once you retire, so all the money you’re making now, can help you live a comfortable lifestyle when you stop working. But here’s the great thing about IRAs compared to savings accounts: they offer a huge tax break.

If saving for retirement is the way you want to go, you’ll want to invest in an IRA account. Ultimately, you’ll save a lot of money on your taxes because you’re not taxed on these savings.

However, you might find some drawbacks to IRAs if you’re not careful. For example, some accounts only allow you to deposit a certain amount of cash each year. In addition, you have to pay a penalty if you withdraw any money before retirement. IRA accounts also have eligibility restrictions based on income, employment status, and other factors. That’s not to say that IRAs are bad. If you use them for the right purpose, they’re a great place to stash your cash.

Now that you have some good ideas of where to put your hard-earned cash, you can choose one of these options and start saving and hopefully making some extra money from your investments.

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