Around $5 trillion of Americans’ cash is currently held in money market accounts, representing almost half of all bank deposits in the U.S. These accounts are often offered alongside conventional savings accounts, leading many to question which one is better for parking their savings. The answer depends on several factors.
Money market accounts are basically savings accounts with minor variations. The biggest difference is that a money market account is a hybrid of a checking account and a savings account, which makes it more attractive to some than just pure savings accounts. Money market accounts are federally insured, like savings and checking accounts, so you don’t have to worry about losing your balance if the bank fails.
A money market account is also a better choice for those who want to be able to make transactions with the account without penalty. The total number of transactions you can make with a money market account is limited by the Federal Reserve to up to 6 transactions a month. Banks typically limit check writing from the account to about 3 checks a month.
If you do not expect to make this many transactions each month, you may be better off choosing a savings vehicle with a higher interest rate. If you feel that the number of transactions allowed is not enough, you should look for a checking account that pays interest on deposits. If you continuously move money more than 6 times out of a money market account, the bank is required by the Federal Reserve to move you into a checking account.
Money market accounts are generally better than savings accounts for those that are interested in parking their money for a long time so it can earn the most interest. Money market accounts pay a “money market” rate of interest to attract deposits rather than a capped savings rate like most savings accounts. The amount of interest paid out by a money market account varies from bank to bank, so review the relevant information for the offerings of several different banks before making your decision.
It is important to remember that a money market account may not be the highest-paying deposit product offered at a particular bank. Some banks are beginning to pay more interest on savings account deposits than money market accounts. Review all of the options available to determine which products have the best interest rates.
Whether you work in finance, information technology or another field, most people don’t start their careers by landing a dream job. Even if you don’t love the job that you currently hold, your position can be the stepping stone for bigger and better things.
Instead of waiting for that dream job to fall in your lap, these tips can help you get on the path to a personal and financially fulfilling career.
Use Your Business Contacts
Regardless of your job position, you are undoubtedly making connections with other people while you work. You don’t have to become best friends or build a lifelong relationship with everyone, but you are missing out on huge opportunities if you don’t start developing networking contacts.
Many of today’s brightest business minds believe that everyone has something to teach you. You never know what you might learn when you take the time to ask your supervisor how she worked her way up to a leadership position or you chat with your district manager about his goals and vision for your company.
Take Time to Read
If your current job is keeping you busy, you might feel like you don’t have time to read. However, the truth is that you don’t have the time not to read. This doesn’t mean that you have to read an entire bestselling novel every week. Instead, focus on reading books, articles and interviews that will help you take your carer to the next level.
Reading about successful business owners like Wesley Edens is an excellent way to take advantage of their expertise. You might not be able to connect with these businessmen in person, but you can learn from both their successes and their failures by reading about people who inspire you in business.
If you’re not already a voracious reader, it’s OK to start small. Begin by committing to read one business article a week, and expand from there. You might find that you don’t want to stop reading once you start!
If you are going to your job everyday without any clear goals in mind, you might not even know if you are on the right track. Before you start setting goals, take some time to think about where you ultimately want to end up in your career. What is your dream job? What tasks would you perform daily? Where would you like to live? Answering these and other questions will help you start formulating goals.
In order for goals to be effective, they need to be specific and measurable. For instance, “I want to land my dream job” might sound like a good goal, but it’s lofty and vague.
Instead, break your ultimate goals down into smaller tasks. Easy to measure goals might include “I want to become a manager within the next 18 months”, “I want to make three new networking contacts” or “I want to complete a course in entrepreneurship.”
Once you’ve set your goals, have regular check-ins where you chart your process. Some people find it helpful to post their goals in prominent places where they will be reminded of them daily.
By improving your knowledge via reading, setting clear goals and networking with other professionals, you can move yourself forward in your career and be one step closer to finally landing that dream job.
Life can be unpredictable. Just when you think you’re on a roll – following your budget and paying off bills – you get sick and have to go to the clinic. After your trip to the doctor’s, you’re healthy but not necessarily happy. With unforeseen medical expenses in the mix, your financial plan has gone right out the window. You were always told that you should have put a little extra away to create a safety net, but that advice is not practical when you’re just making ends meet. But you’re not alone. As of 2013, roughly 75% of Americans live paycheck to paycheck, meaning over three quarters of the country doesn’t have a safety net for those surprise visit to the doctor’s. When it’s your health at stake, you should never be expected to choose between paying your utility bill and filling a prescription. A personal line of credit is a great way of finding a safety net when you can’t make one yourself.
Receiving a personal line of credit through a direct online lending company does not have to be a difficult process. An online lender wants to make it easy for you to get the money you need, so they’ve streamlined both their application process and their loans’ basic requirements. As long as you are an American citizen over18 years of age, with an active bank account and email address you can get started. You can apply online and find out instantly if you qualify for a loan. Within 24 hours, you can have access to a line of credit of up to $1,000. Compare this to applying for a loan through your local bank, and you realize how much faster you’ll see a line of credit with a direct online lender. In as little as a day, you can have the peace of mind that you have a source of credit should an emergency (like medical bills) arise.
When searching for a direct online lender you can trust to help you at your lowest, you have a responsibility to understand what a lending company can do for you. Research their company’s mandate and learn about the terms and conditions regarding their loans. Only apply to those lenders that can offer you a responsible way to meet your short-term goals. As the country’s leading direct online, MoneyKey makes it easy for you to do that. Their website is a transparent source of information, directing you towards the conditions of your line of credit, third-party financial resources for healthy finances, and budgeting tips to keep you from spending over you limit. Should you have any remaining questions before you secure a personal line of credit from MoneyKey.com, a helpful representative is waiting by phone, email, or an online chat to go over your queries and concerns – making sure you’re equipped with the right information so you can pay back your line of credit without any added stress.
Life can be stressful enough without having to worry about how your loan is unreasonable and that you won’t be able to pay it back. When you borrow money responsibly, you can have access to the money you want when you need it and then pay it back without creating an additional financial burden on your budget. Because sometimes you can’t choose to budget for expensive medical bills, but that doesn’t mean you can avoid paying them. A small line of credit can be your solution.
According to a report posted on the FICO blog, the national average FICO score has reached its highest level of the past decade. This means that people are getting better at managing their finances and limiting damage to their credit score. If your credit score is lower than you’d like it to be, there are a few techniques you can use to raise your credit score quickly. Here are some of the most effective techniques you can use.
Fix Errors On Your Credit Report
It is estimated that nearly a quarter of credit reports have errors on them that lower the person’s credit score. Fixing these errors can raise your credit score quickly without much effort. The first step is to obtain a free credit report from each of the big three credit reporting companies from AnnualCreditReport.com. By law, you’re entitled to one free report each year. Examine everything for inaccuracies, including any accounts that show late payments or unpaid bills, and report these errors to the dispute division of the credit reporting company.
Minimize Your Account Balances
According to FICO, 30 percent of your score is based on a ratio known as your credit utilization, which is the ratio of how much you owe compared to how much credit you have. According to its website, Experian suggests that borrowers should have a credit utilization rate of no more than 30 percent. If your balances are higher than that, paying them down will raise your credit score quickly.
Raise Your Credit Limit
A different approach to improving your credit utilization rate is asking your credit card provider for a higher credit limit. If you have a $1,000 card maxed out and get a credit limit increase to $2,000, you’ve instantly cut your credit utilization rate in half, which will raise your credit score quickly. This only works if you do not spend any of your new credit and you continue to work to get your current balance down.
Take Advantage Of New Accounts
Applying for a new credit card from a different issuer will also help your credit utilization rate, since your credit score calculation lumps all your open lines of credit and balances together. This lowers your credit utilization rate regardless of whether the entire balance is on one card or spread over multiple cards. However, it is best to only apply for one or two new cards if you’re going to try this strategy. Opening too many new accounts in a short time period can hurt your credit score and make you look like you desperately need more credit to handle financial difficulties.
Negotiate Outstanding Balances
If your credit score is low because you have bills in collections, try to settle these balances for less than you owe. While it will not remove these mistakes from your credit report, it puts you on the proper path for limiting the damage and can raise your credit score quickly. This works best if you have some cash saved to offer as a settlement. Get any agreement you make in writing.