It’s hard to believe that we’re already almost finished with January 2016. Have you been able to lay out your financial resolutions and/or goals for the year?
Personally, I am a little bit behind on my financial planning and goal setting for the year, as my wife gave birth to our first child on January 7th. However, I have put together a plan to contribute to our pre-tax accounts in order to lower our taxable income so that we’ll be in the 15% marginal tax bracket for 2016.
If you’re looking for some ideas on financial resolutions for 2016, a great place to start is to organize your finances to earn a little extra cash for a rainy day. To bring in the dollar bills in 2016, here are a few places/financial accounts available to help get you there:
- Online Savings Accounts
You never know when a rainy day is going to hit, so setting aside money in a savings account is a great way to reserve your cash in case of an emergency. In my personal finances, an online savings account is one of the most important tools I use. I employ online savings accounts to park my emergency fund savings, as well as my savings for life values and dreams based financial planning.
- Certificate of Deposits
Another place to earn a little extra money in 2016 (and beyond!) is with a CD, or certificate of deposit. Often, CDs have a few more restrictions/requirements than the online savings account discussed previously, such as a minimum opening balance and minimum investment term. However, if you have more flexibility in your finances, CDs can be a great way to earn slightly higher interest rates in a very secure manner.
- Money Market Accounts
If you want to earn high yields but still have frequent access to your cash, then a money market account is for you.
- Cash Back Credit Cards
Of the various types of rewards cards out on the market today, cash back rewards cards are my favorite. This is because I get cash back from my purchases, which of course, can be used in a variety of ways instead of being restricted to purchases from a single industry or vendor. When you are shopping around for a cash back card, it is good to have a minimum expectation for the cash back you receive. First, you should get a minimum of 1% cash back on ALL purchases, regardless of category. Second, in today’s competitive market, the card should have opportunities to earn a higher percent cash back either from a specific vendor or in rotating categories of purchases.
How about you all? What are your favorite ways to earn a little extra side money?
Share your experiences by commenting below!
