CHARLOTTE, N.C. — Bernadette Joy is a nationally recognized money coach and founder of Crush Your Money Goals and teaches people how to save, invest and make more money towards freedom. Today she is sharing 3 tips to stash more cash during inflation.
Tip 1: Get rid of Credit Card debt
The average credit card debt of U.S. families is $6,270, according to the most recent data from the Federal Reserve's Survey. Your first tip is to focus on paying down your lowest balance credit card as soon as possible. Credit card debt sucks all the time, but it is even worse when inflation is rising because everything is getting more expensive AND you are paying interest on top. If you have multiple credit cards with balances on them, make a goal to pay off the lowest balance by the end of this year. You may not be able to get rid of all your credit card debt, but having one less account growing interest will help you save a lot of money and mental stress in the long run.
Tip 2: Invest in I-Bonds
I bonds are a type of U.S. savings bond designed to protect the value of your cash from inflation. With inflation hitting four-decade highs, investors are becoming more interested in higher-returning, lower-risk investments, and this variety of savings bond fits the bill. Series I savings bonds will earn a composite rate of 9.62%. Investors can buy up to $10,000 worth of I bonds annually through the government’s Treasury Direct website. I bonds cannot be cashed for one year after purchase. If a bond is cashed in year two through five after purchase, the prior three months of interest are forfeited.There is no interest penalty for cashing in the bonds after five years.
Tip 3:Put extra money into a high-yield savings account
If you have any extra cash right now that you would like to use to build up an emergency fund, a high-yield savings account offers a chance to earn compound interest while still giving you easy access to your cash. Your money will also be protected and federally insured up to $250,000 in a high-yield savings account.
For more information follow her on Instagram @Bernadebtjoy or visit her website at CrushyourMoneyGoals.com.