Cash Is Making Money Again! Here Is What It Means For Your Wallet

October 5, 2018

Hey Money Guy Show Family! Cash is making money again. That’s right. Times are changing and you can generate income from cash again. (Seriously)

The Great Recession (2008-2009) slashed interest rates and they were in a free fall sitting on the bottom at 0.5% for the better part of a decade. Now, cash is making a comeback and it can yield over 2% today in high-yield savings accounts and over 2.5% in a 1-year CD and 3% for longer term CDs.

We’re at the point now where we all should start paying attention to cash as an asset class that can yield a return and what you can do about it.

Here’s What You’ll Find Out in this Episode:

  • CD rates from 1984 to 2016 as reported from Bankrate
  • Why Brian is like Carrot Top?
  • Checklist to see what you need to do with your cash emergency reserves:
    • Pull your bank statements to see what you’re being paid (hint: if it’s less than 1% you’re not earning enough)
    • FDIC-insured money markets are well over 1.5%. Get it!
    • Don’t just think about FDIC-insured money market accounts. Look at your brokerage accounts, too. Your default cash holding account may not be yielding enough.
    • Re-evaluate what you’re keeping in cash reserves and how you look at cash. Prioritize your cash and make it work. Start with $1,000 first and then get to 3-6 months of cash reserves saved.
    • Maximize interest rates without falling prey to bait and switch. So do your research and make sure the FDIC-insured accounts are more than introductory rates.

Resources Mentioned in this Episode

  • Use resources like Bankrate.com to check rates and FDIC-insured status

Tune In and Go Beyond Common Sense with the Money Guys

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FILED UNDER: Featured, Podcasts
TAGGED WITH: cash, income, money, saving money

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