A high-yield savings account earns an above-average interest rate while letting you access your funds like a traditional savings account. The interest rate, known as the annual percentage yield (APY), can fluctuate as the Federal Reserve changes its benchmark interest rate. Like traditional savings accounts, high-yield savings accounts generally let you access cash as needed and might include a debit card. These accounts are federally insured by the Federal Deposit Insuranc

Understanding your personal financial situation is essential. How well you know your money impacts every aspect of your life. Even if you live comfortably, you might not know everything you should about your financial situation. Ask yourself the following eight questions to determine your understanding of your circumstances. 1. How Much Do I Have in Savings and Investments? You should know the amounts you have set aside in the following accounts and how to access them in

If you’re a contractor, gig worker, or freelancer like me, you likely have a fluctuating income. Because your monthly income is unpredictable, the good times can feel great, while the lean times can be difficult. Although you might be unable to control when you get paid or the size of your paycheck, you can control your money and manage these financial extremes. The following strategies can help. 1. Determine Your Average Income and Expenses Understand how much money is c

You have many options for saving money to reach your financial goals. Savings accounts, certificates of deposit (CDs), money market accounts, cash management accounts, and investment accounts are among the possibilities. The savings vehicles you choose depend on the timeline for reaching your goal, the amount of interest you hope to earn on your cash, and how often you want to access the funds. The following guidelines can help you decide which savings vehicle is best for y

A money market account is a liquid, federally insured bank account that pays interest on your deposit. In contrast, a money market fund is an investment that can include U.S. treasuries or debt securities considered relatively safe. What Is a Money Market Account? A money market account is a federally insured, liquid bank account that pays interest on your deposit. How Does a Money Market Account Work? A money market account operates similarly to a savings account and a c

A money market fund is a type of mutual fund that invests in debt securities with fast maturities and minimal credit risk. These funds are among the lowest-volatility investments. Income generated by a money market fund can be tax-exempt, depending on the types of securities in which the fund invests. The U.S. Securities and Exchange Commission (SEC) defines three categories of money market funds based on the fund’s investments: government, prime, and municipal. SEC rules f

If you’re looking for a place to save your money, there are several options to choose from. While a traditional savings or checking account offers flexibility, it typically pays little to no interest. Other options, like a certificate of deposit (CD), pay higher interest rates but require locking in your funds until a specified maturity date. A money market account combines attractive features into a single product. For instance, a money market account offers higher interes

An emergency fund is essential for building wealth. This account has money set aside to cover large, unexpected expenses such as: Major car or home repairs Home appliance repair or replacement Surprise medical expenses Job loss What Is the Purpose of an Emergency Fund? An emergency fund helps you pay surprise expenses without using credit cards or loans. Having money set aside for unexpected events helps you avoid borrowing to cover the additional bills and increasing your

My 12 years as a licensed financial coach taught me the importance of contributing to an emergency fund. Whether your goals include...

The 50/30/20 rule in finance is a budgeting framework that divides your net income into three categories: 50% for needs, 30% for wants,...

When I worked as a licensed financial coach, I enjoyed teaching my clients about the five main areas of personal finance. Educating...