4 Smart Money Moves to Make This Summer

Related to current economic challenges Inflation and high interest rates Combined with the potential for a recession, You may feel more uncertain about your own financial situation.

But as a new season approaches, you can make the most of the current economic climate to secure your financial future. Below, we’ve outlined a few options to consider this summer, depending on your financial outlook and current situation.

If saving money is one of your financial goals, start by comparing today’s top savings accounts to see how much interest you can earn.

4 goes away this summer

There are four things you can do in the next few months to set yourself up for financial success.

Open a high-yield savings account

Interest rates are higher than they have been in years, and savers are benefiting from its APYs 4.5% and aboveNow is a great time to put some money into a high-earning account. High Yield Savings AccountIn particular, very accessible, so they are ideal for your storage emergency fund or other short-term savings you may need to access at any time.

To find the right high-yield savings account, find a competitive interest rate. Right now, many savings accounts offer Above 4% APY, although some inches are even closer to 5%. The interest rate on these accounts is usually variable, so can fluctuate over time as the federal funds rate changes. By starting to save now, you can take advantage of these high rates for as long as possible.

other Account details to consider Include fees, minimum balance or deposit requirements, and transfer and withdrawal options. You should make sure that the high-yield account you open is FDIC-insured, which will protect up to $250,000 of your deposits against bank failure (per depositor and institution).

Compare the best savings account rates available now here.

Tap into your home equity

While the market may evolve, Home values ​​are still high All over the country. If you’re a homeowner looking to preserve your home’s value against a volatile real estate market, consider this Home equity loan or Home Equity Line of Credit (HELOC) May be a good loan option for you.

When you can use borrowed funds from your home equity any purpose, you can get the most out of using them towards a home renovation or remodeling project This is the interest on the loan and the line of credit duty freeAs long as “the borrowed funds are used to purchase, construct, or substantially improve the taxpayer’s home that secures the loan.” The IRS.

And long-term, the equity you put back in your home using borrowed money can help maintain its value over time. Learn more about home improvements that can be the best Increase your home equity here And now compare today’s top home equity rates here.

Pay off existing debt

With today’s high interest rates, improving your finances is one of the best things you can do Pay off existing debt.

Compounding interest can add up to thousands of extra dollars on top of the principal you borrow, whether you owe money on a personal loan, auto loan, credit card, or something else. High-interest credit card loans, in particular, can earn upwards of 20% APY depending on the terms of your card.

Your savings can be a way to help reduce your existing debt. If you have a large amount saved, it may be worth putting some towards your debt Leave enough To be protected from emergencies.

A home equity loan can be a line of credit Another option for homeowners. It is especially important to meet the repayment terms of these borrowing options, or you could risk losing your home. But because they are secured against the value of your home, you may qualify for a lower interest rate than other debt consolidation options.

Save with a travel rewards credit card

a trip Rewards credit card Rewards categories that match where you spend the most can help you maximize the money you spend on future purchases. Plus, a travel rewards card can help you save on expensive travel expenses today — whether you’re still considering a summer vacation or saving up for a trip during the winter holiday season.

Take, for example, the $95 annual fee Chase Sapphire Preferred® Card. You can earn points on purchases you make today, then redeem those points for travel for 1.25 cents per point (when you redeem through Chase Ultimate Rewards). That means the 60,000 points earned with the card — the amount you get from the welcome bonus after spending $4,000 within three months of account opening — equals $750 worth of travel through Chase.

If you’re planning to travel anytime in the near future, opening a travel credit card today could save you money. Just make sure you avoid taking on high-interest loans by only spending within your means and paying off your balance in full and on time each month. Find the right travel card for you here.

Bottom line

To set yourself up for future financial success, it pays to start taking action today. Given high-interest rates, prioritizing paying off high-interest debt while earning money from savings through a high-yield savings account can help you make the most of it. Current rate environment.

At the same time, still taking advantage of high house prices Borrow against your home equity Relatively low rates can help you access funds to maintain that value or work toward other goals. And maximizing your spending with a travel rewards credit card can help you save on trips you take this summer or in the future.

Start working on your financial plan for the summer to ensure you’re on track to meet your financial goals this year and beyond.