Managing your money in an inflationary world
Running Point Capital and its senior financial advisor, Liz deSousa, CFP, CDFA were quoted by Fortune Recommends in an article titled “8 Ways to Save Money—and Quickly,” authored by Aly J. Yale. The article discusses strategies for accumulating a healthy savings amid general inflation and rising costs for goods and services.
Switch banks, increase your interest rate
Liz is quoted in two of Yale’s eight article suggestions, as well as in the article’s final takeaway. You can ask Liz about switching banks to increase the interest rate you receive, canceling unnecessary subscriptions, and other accessible money-saving and wealth-building ideas, either for yourself or to pass on to your children and grandchildren.
Quoted article excerpts are below:
1. Change bank accounts.
One of the biggest benefits of a savings account is that it allows you to earn interest on the money you save up. Interest rates can vary widely from one institution to the next, though, so you may be able to increase the rate at which your money earns interest—and how fast your balance grows—just by switching banks.
“It can be a hassle to switch banks now that most everyone has automatic paycheck deposits and bill payment set up on their existing accounts,” says Liz deSousa, a certified financial planner and senior financial adviser at Running Point Capital Advisors. “But the time and effort spent switching banks and reestablishing auto deposits and payments is often worth it for the positive impact on your savings.”
Opening an online savings account can be beneficial too.
“If you don’t want to switch banks, I’m a fan of having an online savings account in addition to the traditional brick-and-mortar checking and savings accounts,” deSousa says. “Online banks can offer higher interest rate yields because they don’t have the expense and overhead of managing traditional bank branches. They’re a great place to park excess cash and save for the long term.”
Some banks also offer bonus cash and other incentives for new account holders. These provide yet another way to boost your savings.
8. Cancel subscriptions you don’t really need or use.
Make a list of all the subscriptions and memberships you have. These can include things like streaming services, such as Apple TV, Spotify, Netflix, and Hulu, as well as things like gym memberships and subscription boxes. Note the cost of each service and how often you’ve used each one in the last few months.
If you haven’t used something recently, consider putting the subscription on hold or canceling it entirely. This will free up funds you can put into savings—and start earning interest on.
“Also, look to cut services that double up on themselves—like streaming music and video,” deSousa says. “You probably don’t need Apple Music, YouTube Music, and Spotify and could save $10 to $20 per month.”
The takeaway
If you’re looking to increase your savings balance and ensure you have enough stowed away for a rainy day, think of ways to boost your earnings—at your current job, in a new position, or even by adding a side hustle. Reducing costs and putting those savings into an interest-earning account is another proven method.
As deSousa puts it, “Examining expenses, large and small, can be immensely helpful in eliminating financial burdens and making people feel like they are progressing toward their goals.”
If you buy what you don’t need, you steal from yourself.
Swedish proverb
Disclosure: The opinions expressed are those of Running Point Capital Advisors, LLC (Running Point) and are subject to change without notice. The opinions referenced are as of the date of publication, may be modified due to changes in the market or economic conditions, and may not necessarily come to pass. Past performance is not indicative of future results. Forward-looking statements cannot be guaranteed. Running Point is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Running Point’s investment advisory services and fees can be found in its Form ADV Part 2, which is available upon request. RP-23-109
