Money 101 - from money.com (2024)

1. Money in a bank account is safe.
A bank is one of the safest places to stash your cash since your account is insured against loss by the federal government for up to $100,000 per depositor. But you can insure more than that if you have multiple deposit accounts that are different in nature (e.g., an individual checking account, a joint checking account and a CD). That's because each type of account is insured separately.

2. You pay for the convenience of a bank account.
Banks pay lower rates on interest-bearing accounts than brokerages and mutual fund companies that offer check-writing privileges. What's more, bank fees can be high -- account costs easily can add up to $200 a year or more unless you keep a minimum required balance on deposit. In a fall 2001 survey, Bankrate.com found the average minimum required for a fee-free, interest-bearing account was $2,434.

3. Inflation can eat what you earn from a bank.
Even at a low rate of inflation, the annual creep in the cost of goods and services usually outpaces what banks pay in interest-bearing accounts. With the historical annual inflation rate running at 3.1 percent (from 1926 through 2000), little or nothing in the way of real earnings will be generated in most savings accounts.

4. Not all interest rates are created equal.
Banks frequently use different methods to calculate interest. To compare how much money you'll earn from various accounts in a year, ask for each account's "annual percentage yield" rather than for its interest rate. Banks typically quote both figures, but only APYs are calculated the same way everywhere.

5. You can get better rates (but there's a hitch)
Certificates of deposit (CDs) offer some of the best guaranteed rates on your money and are insured up to $100,000 each. The catch: you have to lock up your money for three months to five years or more. If interest rates fall before the CD expires, the bank is out of luck and must give you the rate it quoted. If rates climb, you're stuck with the lower rate you agreed to when you opened the account. And if you take your money out before a CD matures, you'll pay a penalty -- typically three months of interest.

6. ATM fees can take a significant bite out of your budget.
The convenience of using automated teller machines is an increasingly pricey one. On average, the fee a bank charges you, its customer, to use another institution's ATM is $1.36, according to the Bankrate.com survey. That's on top of the $1.45 that the other institution charges you to use its ATM. To avoid these fees, use your own bank's ATM whenever possible.

7. Getting the best deal takes work.
You won't get a great deal on a car if you just walk into a dealer and plunk your money down. Likewise, you won't get a great banking deal unless you comparison shop and bargain. For example, a bank might offer free checking if you are a shareholder or if you direct deposit your paycheck.

8. Use the Internet to shop for bank services.
You can use the Internet to compare fees, yields and minimum deposit requirements nationwide. To find out what a local bank is offering, plug its name into any Internet search engine or compare what different banks offer at bankrate.com.


9. Banking online can make bill-paying easier.
Electronic bill-paying can save you the monthly hassle of paying your bills. And if you couple online banking with a personal-finance management program, such as Quicken or Microsoft Money, you'll be able to link your banking with your budgeting and financial planning as well.

10. You can bank without a bank.
A number of competitors offer accounts that resemble bank services. The most common: Credit union accounts; mutual fund company money market funds; and brokerage cash-management accounts.

Money 101 - from money.com (2024)

FAQs

How to make more money with $1,000? ›

Here's how to invest $1,000 and start growing your money today.
  1. Buy an S&P 500 index fund. ...
  2. Buy partial shares in 5 stocks. ...
  3. Put it in an IRA. ...
  4. Get a match in your 401(k) ...
  5. Have a robo-advisor invest for you. ...
  6. Pay down your credit card or other loan. ...
  7. Go super safe with a high-yield savings account. ...
  8. Build up a passive business.
Apr 15, 2024

How to manage money 101? ›

  1. CREATE AND STICK TO YOUR BUDGET. The first step to effective money management is knowing what you're spending. ...
  2. CONSIDER HAVING SEPARATE BANK ACCOUNTS. ...
  3. KEEP TRACK OF YOUR CARD ACTIVITIES. ...
  4. INVEST IN YOUR RETIREMENT. ...
  5. PAY OFF YOUR DEBTS. ...
  6. START AN EMERGENCY FUND. ...
  7. SET YOUR OWN REALISTIC GOAL. ...
  8. KNOW WHEN TO HIRE A FINANCIAL ADVISOR.
Mar 15, 2023

How to maximize $10,000 dollars? ›

How to invest $10,000: 10 proven strategies
  1. Pay off high-interest debt.
  2. Build an emergency fund.
  3. Open a high-yield savings account.
  4. Build a CD ladder.
  5. Get your 401(k) match.
  6. Max out your IRA.
  7. Invest through a self-directed brokerage account.
  8. Invest in a REIT.
May 17, 2024

What is the 50 20 30 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

How can I turn $1000 into $10000 fast? ›

The Best Ways To Turn $1,000 Into $10,000
  1. Retail Arbitrage.
  2. Invest In Real Estate.
  3. Invest In Stocks & ETFs.
  4. Start A Side Hustle.
  5. Start An Online Business.
  6. Invest In Alternative Assets.
  7. Learn A New Skill.
  8. Try Peer-to-Peer Lending.
May 24, 2024

How to make $10,000 quickly? ›

Here are ten ways to make $10k quickly:
  1. Become A Freelancer. Freelancing is one of the most popular ways to make money quickly. ...
  2. Invest In Cryptocurrency. ...
  3. Participate In Online Surveys. ...
  4. Become A Virtual Assistant. ...
  5. Do Odd Jobs. ...
  6. Create An Online Course. ...
  7. Become An Affiliate Marketer. ...
  8. Sell Your Stuff.

How can I double $1000 dollars fast? ›

One of the easiest ways to double $1,000 is to invest it in a 401(k) and get the employer match. For example, if your employer matches your contributions dollar for dollar, you'll get a $1,000 match on your $1,000 contribution.

How to turn 100.000 into 1 million? ›

Buy a low-cost index fund that tracks the S&P 500; your $100,000 could grow to $1 million in about 23 years. You'll get there even faster by investing additional funds. Add $500 monthly and reach $1 million in just 19 years. Of course, past results don't guarantee future outcomes, but history is on investors' side.

How to double 10K quickly? ›

How To Double 10K Quickly
  1. Flip Stuff For Money. One of the more entreprenurial ways to flip 10k into 20k is to buy and resell stuff for profit. ...
  2. Invest In Real Estate. ...
  3. Start An Online Business. ...
  4. Start A Side Hustle. ...
  5. Invest In Stocks & ETFs. ...
  6. Fixed-Income Investing. ...
  7. Alternative Assets. ...
  8. Invest In Debt.
May 24, 2024

How much savings should I have at 50? ›

By the time you reach your 40s, you'll want to have around three times your annual salary saved for retirement. By age 50, you'll want to have around six times your salary saved. If you're behind on saving in your 40s and 50s, aim to pay down your debt to free up funds each month.

How much should you spend on rent? ›

So, how much should you spend on rent? Generally, experts recommend spending no more than 30% of monthly pre-tax income on housing. However, it's not always that simple. According to the U.S. Census Bureau, between 2017 and 2021, over 40% of renter households (19 million) spent more than 30% of their income on rent.

What kind of money counts as income? ›

Taxable income includes wages, salaries, bonuses, and tips, as well as investment income and various types of unearned income.

How to get over $1,000 dollars fast? ›

How to make $1,000 fast
  1. Sell stuff you already own.
  2. Deliver food.
  3. Pick up a part-time job.
  4. Rent out unused space.
  5. Start freelance writing.
  6. Try affiliate marketing.
  7. Drive for a ridesharing service.
  8. Find odd jobs.
Jan 17, 2024

How to turn 10k to 100k? ›

Let's have a look at the best ways to turn your 10k into 100k:
  1. Invest in Real Estate. ...
  2. Invest in Cryptocurrency. ...
  3. Invest in The Stock Market. ...
  4. Start an E-Commerce Business. ...
  5. Open A High-Interest Savings Account. ...
  6. Invest in Small Enterprises. ...
  7. Try Peer-to-peer Lending. ...
  8. Start A Website Blog.
May 15, 2024

How to double $2000 dollars in 24 hours? ›

How To Double Money In 24 Hours – 10+ Top Ideas
  1. Flip Stuff For Profit.
  2. Start A Retail Arbitrage Business.
  3. Invest In Real Estate.
  4. Play Games For Money.
  5. Invest In Dividend Stocks & ETFs.
  6. Use Crypto Interest Accounts.
  7. Start A Side Hustle.
  8. Invest In Your 401(k)
May 24, 2024

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