National Bank of MomSix months ago, I published a post on how much interest J had earned since the Bank of Mom opened for business.
At the time, he had gone from $45.00 to $231.99 over the course of 15 months.
Today, just six short months later, he’s surpassed the $400.00 mark with a total of $405.21. I love exponential growth in action!
Here’s his statement for this month:
Welcome back to our five part series on making your money work harder! This series is part of a BIG conversation I had with J where we talked about other ways to invest his money beyond the Bank of Mom.
In part 1, we talked about savings accounts, in part 2 savings bonds, in part 3 CDs, in part 4 stocks and today in part 5 we’ll wrap up our discussion with keeping track of your net worth.
It sounds a little pretentious, doesn’t it? Keeping track of your “net worth.” Like something only rich people do.
But think about this. If you go on a diet, do you log your meals and calories? What about if you’re training for a marathon? Would you write down your runs and workouts? And if you want to cut back on social media? Would you track your time?
Welcome back to our five part series on making your money work harder! This series is part of a BIG conversation I had with J where we talked about other ways to invest his money beyond the Bank of Mom.
In part 1, we talked about savings accounts, in part 2 savings bonds, in part 3 CDs and now for part 4, my favorite conversation, stocks.
A stock is a piece of a company. People buy stocks (or shares) of a company, and with that money, the company can grow their operations. When you own stock in a company, you actually own a piece of that company!
Welcome back to our five part series on making your money work harder! This series is part of a BIG conversation I had with J where we talked about other ways to invest his money beyond the Bank of Mom.
In part 1, we talked about savings accounts, in part 2 we discussed savings bonds and now here’s a recap of our conversation on CDs.
CD stands for “Certificate of Deposit” and you can open one at your bank or credit union. CDs are very similar to standard savings accounts except you deposit a fixed amount of money for a fixed period of time at a guaranteed interest rate.
CDs typically earn a higher interest rate than standard savings accounts. In reference to our series here, CDs are making our money work the hardest so far — harder than both savings accounts AND savings bonds. (Well… except the Bank of Mom, which pays quite a bit.)
Additionally, you can earn a higher rate with a larger opening deposit and a longer term.
Some banks offer standard CDs only, and other banks may have additional types. Ally offers three types of CDs — a High Yield CD, a No Penalty CD and a Raise Your Rate CD.
When your CD matures (meaning that your fixed period of time is up), you’ll get a notice from your bank or credit union. At that time, you can either cash it out (receiving the principal plus interest) OR roll the money over into a new CD (and potentially add funds to it at this time).
Welcome back to our five part series on making your money work harder! If you remember, this series is part of a BIG conversation I had with J where we talked about other ways to invest his money beyond the Bank of Mom.
In part 1, we talked about savings accounts and now here’s a recap of our conversation on savings bonds.
In the most simple language possible, I tried to explain that a savings bond is a loan that you make to the government. You buy the bond, and the government uses the money now. After time passes (up to 30 years), you get your money back PLUS interest.
