The new year is a great opportunity to start saving again. To do that, here are the three strategies to supercharge your savings:
1.Automate! Earmark a certain percentage or dollar amount for a savings account and let your bank put it into a high-yield savings account before you can get your hands on it.
2.Go online. The web offers the best savings rates, hands down. Whether it’s a money market or a high-yield account, make sure you’re getting a rate that beats inflation.
3. Ladder your CDs. Instead of investing entirely in one certificate of deposit (CD), spread your investments out over time. Put a chunk in a six-month CD, a chunk in a one-year CD and a chunk in a two-year CD. This way, your investments mature at different times and you will also keep a steady flow of liquidity. This strategy tends to lock in the best rates. (Read more about laddering CDs here.)