Josh Elledge - Chief Executive Angel
Labor Day was instituted as a day of rest; a holiday from the daily grind. Many do not get the opportunity to relax ““ they still have to work. And with as hard as we work for the money we get, it's a good idea to hang on to more of it.
In fact, it's a great idea to have your money work for you. Especially since money never takes a vacation or a day off. Money never gets sick or goes on maternity leave. In fact, put to good use, it works 24/7/365.
Ways you can have money work for you, instead of just you working for it:
– Hold interest bearing accounts for periodic bills. If you use a checking account for monthly bills and expenses, keep a separate account that bears interest for periodic bills. You can move money to this account until you need it. Money markets work well for this. They accrue some interest, but have check-writing privileges.
– Like periodic bills, you need an emergency fund. Being prepared will keep you from having to use credit cards when things happen. A money market account works best for this function as well.
– Start a retirement account, even if it's very small. Some money working, making using compound interest, will add up over years. If your employer provides matching, make sure you take advantage of it. That's free money ““ and compounded, is thousands of free dollars.
– Don't overpay bills and taxes. Keep what you owe and what you pay as close together as possible. When you output less unnecessarily, you have more to cover your expenses ““ and are less likely to be forced to make late payments or use credit.
