8 Things You Must Do Every Time You Save $500

Jordan Rosenfeld    Mon, September 25, 2023

It feels good to save money, to see those numbers climbing higher and higher in your savings account without necessarily being earmarked for anything in particular.

But money sitting in a savings account is not the best way to build wealth or contribute to a healthy financial future. Instead, experts recommend the following 8 things to do each time you save an additional $500.

Adopt a Pay/Invest/Borrow Strategy

Noah Gomez, a financial consultant and founder at Thick Credit, recommended a pay/invest/borrow strategy.

“With $500 in savings, you can make an additional payment on outstanding debt (if any), invest a portion in stocks or your retirement fund, and place the remaining portion in a certificate of deposit (CD) that you can use as collateral to quickly take out a low-rate emergency loan.”

Put the First $500 Toward an Emergency Fund

“If it’s the first $500 you’ve ever saved, you should put it into a checking or savings account and keep doing that until you’ve saved enough for an emergency fund of 6 months living expenses,” according to Joe Pelusi, a financial advisor with Green Investment Strategies.

“Aspiration has some good savings accounts where your money earns a relatively high rate of interest (up to 3% in their savings account) and isn’t loaned out to fossil fuel companies causing the climate crisis.”

Open a High-Interest Savings Account

https://finance.yahoo.com/news/8-things-must-every-time-210009831.html