financial products Archives - DIYmoneytrack.com

Rate shopping: How to earn more by moving your cash between HYSAs

Now may be a particularly good time to pay attention to where your cash is earning interest. Interest rates are rising, and banks are competing aggressively for deposits, creating opportunities to earn more by moving your money between high-yield savings accounts (HYSAs).

That’s the basic idea behind rate shopping: periodically comparing the rates available on your cash and moving your money when you find a meaningfully higher APY.

Platforms such as Raisin make this strategy easier by giving you access to savings products from multiple banks through one platform.

Keep reading if you are interested in learning how cash rate shopping works.

Where should your money live?

A common question I hear from young adults is, “Which investment accounts should I be using?” Often, the question focuses on choosing between a company 401(k) and a Roth IRA.

That’s an important decision, but it’s better answered in the context of your overall saving and investing strategy. Different accounts serve different purposes, and the goal is to give every dollar a job and put it in the right place.

To learn more about your account options and how to decide where to put your next dollar, please keep reading.

Your one savings goal that protects every other goal

I recently spoke with a 30-year-old married father of two about his family’s finances. When I asked about their top financial goals, he didn’t hesitate. They wanted to save for a down payment on a home and pay off their student loans. They were also making a smart long-term decision by contributing 8% of his salary to a 401(k).

Those are all worthwhile goals.

But after reviewing the family’s monthly income, expenses, and savings, one concern became obvious. They had a relatively small amount of savings set aside for emergencies. A major car repair, an unexpected medical bill, or a temporary job loss could wipe out their savings and force them to abandon the very goals they were working so hard to achieve.

Unfortunately, their situation isn’t unique.

Keep reading if you’re interested in learning more about developing and assessing your emergency savings plan.

The gift of growth: How to build your child’s wealth with appreciating assets

If you become a parent, you’ll naturally want to help your children financially—but how you provide that support is just as consequential as how much you give. Cash gifts spent on consumption often disappear quickly. But gifts directed toward assets that appreciate or build long-term economic value—such as education, homeownership, and even life milestones like marriage—can dramatically improve a child’s financial trajectory.

Instead of giving unrestricted money, consider structuring gifts so they can only be used for wealth-building investments. When done thoughtfully, these gifts function less like spending money and more like early capital investment in a child’s life.

Keep reading if you are interested in learning why appreciating-asset gifts matter and how to create a family investment philosophy for purposeful gifting.

How following prediction markets can make you a better investor

You are probably familiar with stocks, crypto, and sports betting, but may be unaware of prediction markets. These markets sit at the intersection of finance, probability, and real-world events, and they’re gaining attention as tools for forecasting everything from economic trends to consumer behavior.

Even if you never trade on a prediction market platform, understanding how these markets work can help you think more clearly about risk, incentives, and decision-making—skills that directly impact you as a money manager and investor.

I’ve been closely following the evolution of prediction market platforms. Although I do not transact in these markets, I analyze information from these platforms to improve my understanding of markets for personal financial planning.

To help you better understand prediction market analysis and platforms, I’ve written two posts. This post introduces you to prediction markets and how they can be used to help you become a better investor. The second post provides an overview of how these platforms function and their differences.

Please read on if you are interested in learning more about emerging prediction markets and platforms.

Your first 401(k): How to start strong and build wealth for the future

Starting your first job often comes with a big perk — access to a 401(k) retirement plan. Enrolling might feel confusing at first, but the choices you make now can have a huge impact on your financial future.

Here are eight ways to make the most of your 401(k) from day one (and beyond), with real numbers to show the difference your decisions can make and digital tools available to help you optimize your accounts.

When you need umbrella insurance

About ten years ago, my wife got into a car accident and the driver of the other car made a very large claim against us and our auto insurer. The claim amount initially exceeded the liability limit of our policy. We were notified by our insurer that we should consider hiring a lawyer to fight the amount of the claim above the policy limits. Ultimately, the claimant settled with our insurer for an amount within our liability amount, otherwise we would have needed to get directly involved legally.

After this unsettling incident, we decided to increase the protection of our assets with an umbrella insurance policy. Umbrella insurance provides an extra layer of protection on top of your existing insurance policies (like auto or home insurance). It helps cover costs if you’re sued and the damages exceed the limits of those other policies, protecting your assets.

If you are interested in learning when you may need an umbrella policy and how to determine coverage needs, please read on.

Do you know your Return on Spending?

You may have heard of return on investment (ROI), but what about return on spending (ROS)?

Return on Spending (ROS) is a metric that measures the financial return on non-investment expenditures.

Ok, but how do I generate a return on my non-investment spending?

If you use a credit card with cash-back rewards to make purchases, then you can monetize the financial benefits of “paying later” to generate a return on your spending.^*

To learn more about ROS, including how to calculate and the positive impact it has on your Purchasing Power, please read on.

You don’t need a budget to manage spending

60% of people don’t use budgets to manage spending, according to the 2017 Consumer Financial Literacy Survey from The National Foundation for Credit Counseling. While that number may be surprising, what is more shocking is that this number has not changed much since the 2007 survey. For all the advances in technology, including spreadsheets and online budgeting software, people’s habits related to managing money and tracking spending have not really changed that much over the last decade. Continue reading “You don’t need a budget to manage spending”

Don’t pay to manage your credit score

I was asked earlier this week what’s the best way to check a credit score? There are a few ways to get your credit score, but check to see what your credit card company offers first. Many credit card issuers now provide cardholders with their credit score as a free benefit. The card issuer I use provides my FICO® score, score history, key factors affecting my score, and suggestions on how to improve my score. Continue reading “Don’t pay to manage your credit score”