We’ve ridden the waves of 1970s revivals, wall-to-wall carpeting, the rise and fall of the Ultrafragola, and bouclé upholstery. When we type “interior design trends 2024” into our crystal balls (or indeed, into Google) what are we likely to find? AD PRO consulted the experts, and 2024 promises to be a year of thoughtfully chosen offbeat colors, a mix-and-match approach to the designs of different time periods, and a return to romanticism, with jewel tones and florals offering a flirty, old-fashioned respite from the onward march of technology.
Stone Fruit Chic: Peach and Apricot
Soft, sweet, and just a bit tart, peach and apricot are the dominant hues in the home trends color forecasts for 2024. Pantone declared Peach Fuzz its color of the year, and Leatrice Eiseman, executive director of the Pantone Color Institute describes it as “a color radiant with warmth and modern elegance.” Gemma Riberti, head of interiors at trend forecasting agency WGSN, notes that her team has had its eyes on orange. In particular, they note its emergence as “a recharging near-bright in the wellness sector” and as a vivacious alternative to traditional pastels. WGSN’s color of 2024, Apricot Crush, “can be easily paired with neutrals and naturals, and is suitable for textiles, glass, bath, and bedroom products” Riberti says, “but you can also work it to create intriguing narratives: offset it with greens, purples, and blues for vibrant contrast.”
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The classic technique of selecting chromatic bedfellows from opposite sides of the color wheel is also in Champalimaud Design’s toolkit. Principal Courtney Brannan tells AD PRO that when it comes to interior design trends in 2024, “we are seeing all the possibilities of peach and turquoise tones.” Though these shades have a tropical feel to them, they “can also feel neutral,” she says. Case in point: “At the Ritz-Carlton, Grand Cayman, turquoise creates an amplifying, formal statement surrounding the Silver Palm Bar.” Meanwhile, in New York City’s West Village, an apartment’s peach plaster wall “has a much more understated presence, calmly backgrounding the artful living space around it.”
That’s So Metal
It’s back to the essential elements (literally) for home decor trends in 2024: chrome, steel, and aluminum are suddenly everywhere. Pinterest Predicts 2024 includes a “Hot Metals” board with a distinctly surrealist aesthetic—gleaming surfaces that resemble the shiny sinew of liquid mercury.
David Michon, author of the Substack newsletter For Scale, thinks this is a natural consequence of the early-2020s overload of earth tones. “The desperate search for some kind of warmth in this cold world has exhausted ‘earthy’ browns and ‘meditative’ grays,” he notes. But don’t be too quick to write off these metallic finishes as industrial: “The many stainless-steel explorations of Milan’s Concorde, Harry Nuriev, or Tejumola Butler Adenuga show us that, in fact, steel simply reflects.” In general, says Michon, these metals amplify whatever vibe a room is already giving. With one notable exception: “stainless-steel appliances, which remain overrated.”
House of Hunt founder Holly Hunt concurs, but with a slightly more muted finish: “I foresee bright aluminums and silver gaining popularity in 2024 after years of gold and black dominating metal hardware and accessories,” she tells AD PRO. “However, I tend to avoid metals that are too shiny and prefer the richness of a brushed chrome or nickel, as they give a more polished and sophisticated look.” Adding to the evidence: Earlier this month, Nifembi Marcus Bello presented an eye-catching suite of cast-aluminum furniture at Design Miami.
Dark and Deep: Jewel Tones
The saturated hues of precious gems are giving the palette of 2024 design trends a sense of velvety mystery. According to Rob Natale, chief of design at Sixpenny, this is thanks in part to the recent dominance of neutrals across interiors. “People are rediscovering color in their homes, which is a welcome shift from the all-neutral palette we’ve seen for several years, and jewel tones are at the forefront of that shift,” he says. “It’s a perfect way to incorporate richness, whether as an accent or as the centerpiece for a space since they create such a strong counterpoint to almost any look.” (Heeding their own wisdom, Sixpenny is currently selling furnishings in an array of gem-inspired hues.)
Looking to learn the best ways to make money while you sleep? Do you ever feel worn out from your regular routine and tired of struggling to manage your money? Just picture being able to earn money even when you’re sleeping, without having to work long hours. In this article, I will show you 19…
Looking to learn the best ways to make money while you sleep?
Do you ever feel worn out from your regular routine and tired of struggling to manage your money? Just picture being able to earn money even when you’re sleeping, without having to work long hours.
In this article, I will show you 19 ways to help you reach financial freedom by earning passive income, such as while you sleep.
Having different ways to make money might seem like something crazy, but with the right plan and some hard work, it can actually happen.
In fact, I earn income all the time while I am sleeping and I love it. Now, that doesn’t mean that it’s easy. Some of the ways below will be harder than others, and they may take up a lot of time still. But, you may be able to earn money throughout the day from the hard work that you put in.
Key Takeaways
There are many ways to make money while you sleep, such as by blogging, selling digital products on Etsy, renting out storage space or real estate, putting your money in a high yield savings account, earning dividends, and more.
Some are easier to start than others – so make sure to think about the pros and cons, such as how much time it may take you or how much money you will need to start (your minimum investment!).
19 Best Ways To Make Money While You Sleep
Below are 19 ways to make money while you’re asleep.
1. Blogging
My favorite way to make money while I’m sleeping is by blogging, and it is a great way to make passive income while you sleep. I have been blogging for many years now (since I started Making Sense of Cents, I’ve made more than $5,000,000 from my blog), and I am able to work and earn money while I am asleep, such as by selling digital products, display advertising, and through affiliate marketing.
This is because readers read my blog posts throughout the day and night, even when I am not working. I have blog posts and advertising on my site, for example, that earn me income throughout the day.
So, what is a blog? A blog is like the article you’re reading now, written and published on a website. It’s basically a collection of written content. You can start a blog about many different topics, such as finance (like my blog!), recipes, family, health, wellness, pets, sports, outdoors, travel, and more.
Other similar ways to make money in your sleep include starting a podcast or a social media account, such as on TikTok or Instagram.
Recommended reading: The 25 Most-Asked Blogging Questions To Get You Started Today
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Affiliate marketing
If you want to learn how to make money overnight (such as when you’re sleeping), then my absolute favorite way is affiliate marketing.
This is one of the main ways I make money on my blog, but you don’t need a blog to do affiliate marketing either. You can do affiliate marketing on Instagram, Facebook, Pinterest, an email list, and more.
Affiliate marketing is when you share products or services from other companies with readers, subscribers, or people that you know. When someone buys through your referral link, you get a commission and earn some money from the company.
Here’s an example: Let’s say you write about a book on your blog and provide a link to it. If someone buys that book through your referral link, you get a commission.
You’ve probably bought things through affiliate marketing many, many times over the years. I definitely have!
Recommended reading: Affiliate Marketing Tips For Bloggers – Free eBook
3. Selling printables
Making and selling printables is another good way to make money without much active effort.
Printables are digital items that people can download and print at home. They can be things like games for a bridal shower, checklists for grocery shopping, planners for managing budgets, invitations, coloring pages, quotes designed to be printed and hung on walls, and more.
I buy printables all the time, and so do other people. In fact, I bought a printable the other day for my daughter – one that would help her learn the alphabet that I could print out at home for her.
Making printables can be a passive way to earn money. You only need to make one digital file for each product, and you can sell it as many times as you want. All you need is a laptop or computer and an internet connection, which makes it a low cost way to start a business.
Recommended reading: How I Make Money Selling Printables On Etsy
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
4. Investing in real estate
Investing in real estate is a popular way to make passive cash flow while you sleep.
By purchasing rental properties, you can earn a steady flow of rental income from tenants and guests. Also, your property’s value will most likely appreciate over time, which can increase your net worth.
You can invest in residential properties, commercial real estate, short-term rentals (such as starting an Airbnb), REITs (real estate investment trusts), and more. There are pros and cons of each, so you will want to think about that before you get started.
Recommended reading:
5. Starting a YouTube channel
Starting a YouTube channel is another way to make money while you sleep. This is because you can add affiliate links to your videos, generate ad revenue, form brand sponsorships, and sell products within videos as well.
You’ll need to create videos that entertain, educate, or inform viewers, and get as many views to your videos as you can (for the most part, more page views usually does mean more income).
As your YouTube content becomes more popular, you will earn passive income from past videos while working on new content.
Recommended reading: How I Grew From 0 Subscribers To Over $100,000 On YouTube In Less Than One Year
6. Dropshipping
Dropshipping is a type of business where you sell items on an online store, but you don’t do the shipping. Instead, you have a supplier that does the shipping for you.
So, this means that you don’t need to keep any products in stock yourself.
That doesn’t mean that this is easy, though – you have to find trustworthy suppliers and make sure your customers get their orders on time. You will also need to create a website, find a way to differentiate yourself from other dropshippers, take pictures of the items you are selling, answer customer questions, and find ways to grow your store.
The types of items that you can sell in a dropshipping store include clothing, electronics, home decor, pet supplies, luggage, stationary, craft supplies, books, and more.
7. Online courses
I have made over $2,000,000 from selling courses over the years – courses that I have personally created.
Making and selling online courses is a great way to earn money at any time of the day – even while sleeping.
Some examples of courses that can be created include:
Parenting and family
Health and wellness
Woodworking
Dog training
Standardized tests preparation
Playing the guitar
Teaching a language
Traveling
Painting
Cooking
And so much more!
I have taken courses on all sorts of topics over the years, such as baby sleep classes, personal finance, credit card rewards, and so much more.
Creating an online course is one of the fastest ways to use your time, increase your earnings, and help more people.
Recommended reading: How I’ve Made Over $1,000,000 From My First Course Without a Big Launch
8. High yield savings accounts
A high yield bank account is a low-risk method to make extra cash while you sleep.
These types of savings accounts earn a higher interest rate than a regular savings account, so your money grows faster.
You will want to make sure that you pick a trustworthy bank and check the interest rates regularly because they can go up or down. Some people move their money into high yield savings accounts often so that they can get the highest interest rates.
Remember, these accounts usually over the long run have lower interest rates compared to stocks or real estate, but they give you a stable and secure way to earn money.
I personally use Marcus by Goldman Sachs as they have a very high rate. You can get up to 5.40% at the time of this writing through a referral link bonus. According to this high yield savings account calculator, if you have $10,000 saved, you could earn $540 with a high yield savings account in a year. Whereas with normal banks, your earnings would only be $46.
9. Dividends
Buying stocks that pay dividends is another way to earn money while sleeping.
When you invest in these stocks, you get a portion of the company’s earnings on a regular basis.
Here’s how dividends work: If you have shares of a company that gives you money because you own them, that’s called a dividend. So, if you own 10 shares of Company XYZ, and they give you $5 in dividends every year, you’ll get $50 in total for that year. Usually, companies give out dividends four times a year. In the example, the $5 they give you every year will likely be divided into $1.25 for each quarter (four times a year).
Recommended reading: What Are Dividends & How Do They Work? A Beginner’s Guide
10. Rent out your garage
If you have extra land or space in your home that you’re not using, you can make money by letting other people use it for storage.
You can rent storage space for things like cars, boats, boxes, and more. This could be your garage, driveway, closet, basement, attic, or even just a shelf.
A website where you can list your storage space is Neighbor. On this site, you can make between $100 and $400 or more every month. How much you earn depends on how much people in your area want to rent and what kind of space you’re renting out.
Recommended reading: Neighbor Review: Make Money Renting Your Storage Space
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You can use this website to list your unused space for rent and make up to $15,000 per year by doing so. With Neighbor, you can rent out your garage, driveway, basement, parking lot, shed, warehouse, carport, attic, street parking, or even a closet.
11. Hosting webinars
Webinars are like online classes or workshops about specific subjects (I’ve included a list below of some examples). If you’re an expert in something, you can record a webinar and charge people to attend or sell products and services related to the topic during the webinar.
You can also record your webinars and let people watch them whenever they want, which can bring in money while you are sleeping or on vacation.
For example, you could host a webinar about:
Starting an e-commerce store – Teach participants the ins and outs of setting up and running a successful online store.
Digital marketing strategies for small businesses – You could share online marketing techniques to help businesses grow their online presence, such as tips for TikTok, Instagram, Pinterest, Google SEO, and more.
Stock market investing for beginners – You could share advice and tips for newbies in the world of stocks, mutual funds, index funds, bonds, S&P, and investment portfolios.
How to make money with affiliate marketing – You could teach the strategies behind successful affiliate marketing sites.
How to invest in fine wine – Or, any other type of investment! If there is something specialized that you invest in that is different from normal, you may be able to generate interest in your webinar.
And so much more.
12. Peer-to-peer lending
Peer-to-peer (P2P) lending is when you lend money to people or businesses who need loans, and they pay you back with interest.
Websites like LendingClub and Prosper let you spread out your money to lots of borrowers, which lowers the risk if someone can’t pay you back.
As borrowers make their payments, you get a part of the interest, which adds to your passive income streams that you can make without working.
With a peer-to-peer lending site, people can borrow money from a group of lenders like you and me, rather than from a traditional financial institution like a bank. People use peer-to-peer lending sites for all sorts of reasons such as debt consolidation, home improvement, small business financing, investment opportunities, and more.
13. Selling stock images and graphics
If you like taking pictures, you can make money in your sleep by selling stock images on websites like Shutterstock, Getty Images, or Adobe Stock.
People buy stock images for all sorts of reasons, such as to put on their website, within articles and blog posts, on social media, and more. I buy stock images all the time because they can help to make a blog post more enjoyable to read (you can find several stock images within this blog post, in fact).
A great thing about stock content websites is that they can bring in money even when you’re not actively working. You take pictures, put them on the site, and they can keep making money for a long time.
Some common types of pictures that you can sell include travel, business, people, food, animals, health, fashion, sports, and more.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
14. Start a membership site
Creating a membership site where people pay a regular fee (such as each month or each year) for special content, resources, or services is a way to make money.
Some examples of membership sites that you can start include:
Stock image library – You can sell a collection of pictures or videos that subscribers can use for their own projects (such as their own business). Subscribers pay for access to this media library. I personally have been paying for a stock photo membership for years, and I think they are amazingly helpful.
Newsletter – Send valuable and special content straight to your subscribers’ email inboxes regularly where you charge a subscription fee for access.
Mastermind groups – You can form small, focused groups of individuals who come together to support and challenge each other in achieving their goals, and you charge a membership fee for participation. I have seen mastermind groups go for anywhere from free to tens of thousands of dollars a year to participate.
Freelance job board – You can start a site where freelancers can find real job listings and opportunities. Members pay for access to these job listings because they want to find real jobs that pay (instead of having to weed through fake ads or low paying ones).
Consulting or coaching services – You can give personalized advice, coaching sessions, or access to a private community for members looking for guidance in a specific area, like life coaching or business consulting.
Fitness membership – You can create a platform with workout plans, meal plans, and wellness tips. Members pay a monthly fee for access to this content.
Digital downloads library – You can create a library of downloadable resources like ebooks, templates, or software. Subscribers gain access by becoming members.
Community forum – You could create a community around a shared interest or hobby where members can engage in discussions, ask questions, and share experiences, and you charge a fee for access.
Online courses membership – You can start a platform where you have courses on a specific subject, like photography, cooking, or digital marketing, where subscribers then pay a monthly fee to access the content.
Keep in mind, the secret to a successful membership site is giving real benefits to your subscribers. So, whether it’s great content, a helpful community, or useful resources, make sure your members feel like they’re getting what they paid for so that they keep their subscription for months and years to come.
15. Sleep studies and mattress testing
Taking part in sleep studies and mattress testing will most likely not be a long-term, reliable source of income, but it can earn you some extra money while you literally sleep.
You can find these by researching local sleep clinics or mattress companies that have paid studies or testing. Many universities also pay for sleep studies, such as the Harvard Division of Sleep Medicine.
The amount of money you can make depends on the specific study or testing, but it can be an interesting way to earn some extra money or get a free mattress for your time.
16. Vending machine business
Running a vending machine business can be a good way to make money, and you can sell different kinds of products. You may be able to earn over $1,000 a month with a well-run vending machine business.
Here are some ideas of what you can sell in a vending machine:
Snacks and drinks:
Chips
Candy
Nuts and seeds
Cookies
Soda
Bottled water
Energy drinks
Juices
Healthy and organic food:
Granola bars
Dried fruits
Nut mixes
Organic snacks
Low-calorie drinks
Hot drinks:
Coffee (regular, decaf, specialty)
Tea
Hot chocolate
Frozen treats:
Ice cream
Frozen yogurt
Popsicles
Fresh food:
Sandwiches (pre-packaged)
Salads (in sealed containers)
Fruit cups
Yogurt parfaits
Personal care and hygiene items:
Tampons and pads
Toothbrushes and toothpaste
Hand sanitizer
Makeup
Vitamins and supplements
First aid kits
Pain relievers
Electronics and accessories:
Phone chargers
Headphones
Power banks
Office and school supplies:
Notebooks
Pens and pencils
Sticky notes
USB drives
Specialized items:
Fishing bait and supplies
Beauty and skincare products
Baby items (diapers, wipes, toys, snacks)
Recommended reading: How I Make $7,000 Monthly With A Vending Machine Business
17. Amazon FBA
Amazon FBA (Fulfillment by Amazon) is where sellers store products in Amazon’s fulfillment centers, and Amazon handles customer shipping, returns, and customer service on the seller’s behalf. By using FBA, you can sell a variety of products without worrying about storing inventory or handling shipping logistics.
You would be finding the products to sell, though. Even if you have no experience selling on Amazon, you can earn money selling household goods, toys, books, electronics, and so on.
If you want to learn more about starting an Amazon business, I recommend signing up for this free training that will teach you how to sell products on Amazon and make $100 to $500 per day.
Recommended reading: How To Work From Home Selling On Amazon FBA
18. Write a book
People can buy books at any time of the day, including while you are sleeping.
Self-publishing online platforms, such as Amazon KDP (Amazon’s Kindle Direct Publishing platform), allow you to reach a broad audience without the need for a traditional publisher.
Writing your own book is a great way to make money from home, and there is probably something helpful that you could write about (even if you think otherwise!). One very popular topic right now is romance novels, in fact.
Recommended reading: How Alyssa is making $200 a DAY in book sales passively
19. Develop and sell an app
If you have technical skills, developing and selling an app can be a way to make money overnight while you are sleeping.
Creating your own app, whether it’s a helpful tool, a fun game, or something else, can help you to make passive income.
Even though it will take some work and money up front, once your app is in the app stores, it can generate revenue no matter the time.
Some ideas for apps that you could create include a budgeting tracker, meal planner, fitness tracker, meditation app, travel itinerary planner, and more.
You will want to do some research, and make sure that there are people who want to use the app that you are thinking about creating, of course. You could start brainstorming ideas by thinking about what kind of app you think could be helpful in your life to have.
Frequently Asked Questions On How To Make Money While You Sleep
Below are answers to common questions on how to make money while you sleep.
What is passive income?
Passive income is money you earn without actively working, and instead, it comes from investments, businesses, or assets that require minimal effort on your part. Now, that doesn’t mean that making passive income is easy, as you will most likely have to put in a lot of work in the beginning to get started. But, it can be well worth it to make money at any time of the day. Passive income is personally my absolute favorite way to make money.
Which businesses make income overnight? What businesses make money while you sleep?
A few businesses that can generate income even when you’re not actively working are online stores, affiliate marketing websites, and selling printables. These businesses run online, making them accessible to customers 24/7 so people can use them.
What did Warren Buffett say about making money while you sleep?
Warren Buffett, a successful investor and businessman, is quoted as saying, “If you don’t find a way to make money while you sleep, you will work until you die.” This goes to show how important it is to find ways to make money without constantly working a regular 9-to-5 job.
What is the best way to make money while you sleep? – Summary
I hope you enjoyed this article on how to make money while sleeping. As you can see, there are many full-time jobs and side hustles to make money while you sleep such as:
Blogging
Affiliate marketing
Selling printables
Investing in real estate
Starting a YouTube channel
Dropshipping
Selling online courses
Putting your money in high yield savings accounts
Dividends
Rent out your garage
Hosting webinars
Peer-to-peer lending
Selling stock images
Start a membership site
Sleep studies and mattress testing
Vending machine business
Amazon FBA
Write a book
Develop and sell an app
Do you want to learn how to make money while you sleep?
CD rates have been slowly dropping for several weeks, and last week was no different. Bread Savings, MYSB Direct and Rising Bank all lowered the annual percentage yield on some of their CD accounts. But while past weeks have seen rate drops largely limited to long-term CDs, last week’s drops were across a range of common terms, from six-month to five-year CDs.
What does this mean for savers?
If you’ve been considering opening a CD, now is the time to do it. Whatever your savings timeline, rates remain high overall — but they’re slipping. So the longer you wait, the lower your earning potential could be.
Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.
Today’s best CD rates
Here are some of the top CD rates available right now and how much you could earn if you deposited $5,000 today.
CD rate trends — where are APYs heading?
CD rates have steadily increased since March 2022 as the Federal Reserve regularly raised the federal funds rate to combat inflation. This rate affects how much it costs banks to borrow and lend money, so the higher it is, the higher banks raise their CD rates to attract new customers (and their money).
But with inflation finally cooling, the Fed has opted to pause rate hikes at its last two meetings. As a result, banks have begun easing their rates. Here’s where rates stand compared to last week:
Term
CNET Average APY*
Weekly Change**
Average FDIC rate
6 months
4.93%
No change
1.43%
1 year
5.26%
No change
1.85%
3 years
4.35%
No change
1.39%
5 years
4.10%
-0.24%
1.39%
*APYs as of Dec. 4, 2023. Based on the banks we track at CNET. **Percentage increase/decrease from Nov. 27, 2023, to Dec. 4, 2023.
From Nov. 27 to Dec. 4, rates have remained largely unchanged, with only a 0.24% decrease in average five-year CD terms. However, this is looking at overall averages. On a more micro level, several banks have lowered their CD rates recently, and experts expect rates will continue to decline over the next several months.
“Consumer Price Index (CPI) numbers for October showed below-expectation inflation for both headline CPI (3.7% to 3.2%) and core CPI (4.1% to 4.0%),” said Jesse Carlucci, Ph.D., CFP, chief investment officer at Arrow Investment Management. “Together with comments recently from the Federal Reserve chair, Jerome Powell, this has led to the expectation that we have reached the peak of the interest rate cycle.”
Why you should open a CD now
CD rates aren’t likely to drop dramatically in the near future, but even the gradual erosion we’ve seen lately makes a difference in your bottom line. When you open a CD, you lock in the current rate in exchange for agreeing to keep your funds in the account until the term is up. That means your earnings are guaranteed even if rates go down in the future. High-yield savings accounts, by comparison, have variable rates that rise and fall in response to federal funds rate changes.
“[CDs] are a good place to keep short-term savings, like saving for a baby or to buy a home,” said Bola Sokunbi, founder of Clever Girl Finance and CNET Financial Review Board member. “Although CDs might have penalties for early withdrawal, you could look at those penalties as an incentive to leave your savings alone if you don’t really need to touch it.”
In addition, CD accounts with FDIC-insured banks or NCUA-insured credit unions are protected up to $250,000 per person, per institution if the bank fails. This makes them a low-risk way to grow your savings and enjoy peace of mind.
Factors to consider when selecting a CD
APY is an important factor when comparing CD accounts, but it’s not the only one.
“I wouldn’t stress too much about the difference in a few tenths of a percentage,” said Bernadette Joy, a personal finance coach and CNET Financial Review Board member. “But I do think it’s important to make sure the CD is at least earning more than comparable high-yield savings accounts. HYSAs are more liquid, and if you’re going to lock up your money for several months, you should get paid more to do so than an HYSA.”
In addition to comparing APYs, you should also weigh the following when choosing a CD:
How soon you’ll need the funds: Most banks charge a penalty if you withdraw money before the CD matures. This can eat into your interest earnings. So, be sure to choose a term that fits your savings needs.
Minimum deposit: Some CDs require a certain amount to open an account — typically, $500 to $1,000 — while others have no minimum deposit requirement. This can narrow down your choices.
Monthly fees: Fees can erode your balance. Many online banks don’t charge maintenance fees. They have lower overhead costs than banks with physical branches, and they pass these savings down to consumers through higher rates and fewer fees. Still, be sure to read the fine print for any account you’re considering.
Federal deposit insurance: Confirm that any institution you’re considering is an FDIC or NCUA member to ensure your money is protected in the event of a bank failure.
Customer service: Read customer reviews and ratings on sites like Trustpilot to make sure the bank is responsive, professional and easy to work with.
Methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We evaluate CDs based on APYs, product offerings, accessibility and customer service.
The current banks included in CNET’s weekly CD averages are: Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America, Connexus Credit Union.
This week, I read an article in the WSJ about paying the mortgage with a credit card.
Either things are really bad in the economy, or things are really bad at the WSJ. Or they’re about to be.
Regardless, it’s not a great strategy to put the mortgage on plastic, which is why most card issuers don’t allow it.
Ultimately, they don’t want you paying your debt with other debt, especially secured with unsecured.
But there might be a way to still keep your cash flow without putting the mortgage payment on a card.
Take Advantage of the Many 0% APR Credit Cards Out There to Shift Your Spending
When you think about making this payment or that payment, it all basically comes from the same place. Your bank account.
So you can indirectly keep your cash flowing while paying the mortgage via traditional means if you shift other spending.
To achieve this, you just need to offset other purchases. This can be achieved by pushing those other expenses to a 0% APR credit card.
Many of these credit cards offer interest-free financing for anywhere from 12 to 18 months at the moment.
This buys you time and allows those other expenses, which are totally allowed (and expected) to be paid with a credit card, to funnel to your 0% APR card.
For example, say you’ve got a $2,500 monthly mortgage payment and another $2,000 in monthly expenses.
We’ll call it gas, groceries, utilities, and other necessities, along with some discretionary purchases, such as eating out or going to the movies.
Instead of putting all those charges on your regular credit cards, which must be paid in full each month to avoid interest, you can redirect them to a 0% APR card.
This frees up that cash for more important things, such as the mortgage.
Yes, you’re still paying the same amount each month, but you’re not dealing with any extra fees for using a third-party payment processing company like Plastiq, which can be nearly 3%.
On a $2,500 mortgage payment, we’re talking $75. Ouch!
And you just need to make the minimum payment each month on the 0% APR credit, which frees up money for the mortgage.
Even Better, Earn Interest on Your Money with Some Basic Arbitrage
Many years ago, pre-Great Recession, interest rates on savings accounts were in the 5% range.
This allowed savers to earn a decent return on any money in a high-yield savings account.
Then as you probably know, savings rates went to near-zero as mortgage rates hit record lows.
This is the double-edged sword of low interest rates. It’s great if you have a low fixed-rate mortgage, but you don’t earn anything in the bank for parking your money.
With 8% mortgage rates now a thing, and the 10-year bond yield close to 5%, banks are back to offering decent savings rates.
For example, Discover is currently offering 4.30%, as is Capital One. And Ally Bank is offering 4.25%, while Marcus has an even higher 4.40%.
This means you can park your money again and earn a decent yield, whether it’s 4% or perhaps as high as 5%.
So those who put their regular spending on a 0% card can keep more of their money in a high-yield savings account since only a small minimum payment is due each month.
That allows it to grow while everyday purchases accrue zero interest or finance charges during the promotional period.
Just take note of how long the 0% APR is offered. Once it comes to an end, you need to pay off the entire balance in full to avoid any interest.
Someone who is aggressive could put most spending on plastic (other than the mortgage) and keep as much as possible in the bank account earning 4-5%.
It’s Not Wise to Pay a Fee to Pay Your Mortgage
At the end of the day, it’s a pretty raw deal to have to pay money to make a mortgage payment.
Or to have pay a fee for any payment for that matter. The Consumer Financial Protection Bureau (CFPB) refers to this as a “pay-to-pay fee.” And often it’s not even legal to charge such fees.
This is why you should avoid paying your mortgage by phone or even using a debit card to pay the mortgage, as it can sometimes be accompanied by a fee as well.
Of course, I assume folks are in a crunch if there’s the need, other than the points and miles crowd who might want to put a big purchase on plastic to earn a bonus.
But there is perhaps a better way, as outlined above. Just be careful not to rack up debt thinking you’ve got more money than you actually do!
And remember that 0% APR period will come to an end, at which point the APR will likely greatly exceed that of a home loan. So it must be paid off.
Another issue with not paying your mortgage with a bank account is there could be a delay or a mix up.
You won’t want to miss a mortgage payment as a result of some third-party company. It can also get messy if your mortgage payment history is coming from different sources.
So it’s best to just pay the mortgage consistently from the same bank account to avoid any costs or unexpected surprises.
Multifamily construction starts fell to less than half of typical recent norms during the second quarter and will likely cause rents to rise over the next two years, a report said.
New starts slowed to 30,800 in 15 core markets across the U.S., according to commercial real estate services firm Institutional Property Advisors, a division of Marcus & Millichap. The number came in 52% lower than the quarterly average of 64,200 based on the previous nine quarters dating back to early 2021. Second-quarter start volume also dropped by 62% year over year from 81,500, which represented the highest volume since 2021.
The 15 markets tracked account for close to half of all total multifamily construction pipeline nationwide.
The steep decline was not entirely unexpected but was exacerbated by recent developments in the financial industry, as tighter access to credit and capital contributed to the slowdown.
“The largest banks were generally targeting less substantial capital allocations for real estate early in 2023; likewise, many smaller banks made strategy adjustments when a handful of regional lenders failed during the spring,” the authors of the report wrote.
Financing for new apartment constructions encountered additional headwinds as rent growth also slowed and insurance costs headed higher. In its second-quarter commercial originations survey, the Mortgage Bankers Association found multifamily loan production overall down by 48% from a year earlier.
With the pace of building leveling off, new multifamily deliveries will likely begin to decrease in early 2025 and fall even further in the second half of the year, Institutional Property Advisors said. As a result, rent growth will likely accelerate as soon as spring 2024 and continue over the next 18 months.
Three Texas markets experienced the sharpest fall off in new starts in early 2023 from the prior nine-quarter average. Houston saw a 79% decline in the second quarter to 1,100 from 5,280, while Austin recorded a 74% drop to 1,400 from 5,470. Meanwhile, Dallas-Fort Worth’s numbers slid down 67% to 3,240 from 9,890.
“It’s perhaps surprising to see that level of deceleration in the Texas markets, as the Lone Star
State’s key metros are still leaders for job production and apartment demand,” the report said.
The decrease in construction, though, likely means the three cities are poised for a surge in rent-price growth. In Dallas-Fort Worth and Houston, new apartment supply is also spread out across a wider swath, rather than concentrated in a few communities as it had been in the past.
Recent research from CoreLogic found the rate of rent-price increases nationwide had fallen back close to pre-pandemic levels earlier this summer after surging in 2022.
Other markets where building starts dropped off at a greater pace than the national average during the second quarter were Philadelphia, Denver and Washington, at 66%, 62% and 57%, respectively.
Among the 15 metropolitan areas covered by the report, the Raleigh-Durham market in North Carolina reported the only growth in the number of apartment dwellings breaking new ground, with volume rising almost 5% to 3,490 from an average of 3,330 during the previous nine quarters.
Sometimes the small, unseemly, unimportant tasks we do every day can have a massive impact on our lives for the better. We call these “life hacks”. In this article, we’re walking through the top ten most powerful life hacks that can change your life. If you’re looking to bring your life together and don’t know where to start, take the time to read this article. It’s crazy where these small steps can lead you in three to five years.
1. 15 Minutes of Sun Every Morning
Get sunlight in your eyes every morning. Sunlight offers many benefits, including but not limited to setting your circadian rhythm, priming your brain to be alert and focused, and giving your body Vitamin D. It also enhances metabolism and immune functionality. After doing it regularly, watch this transform your overall mood, well-being, and even your ability to sleep.
2. Daily Meditation
So many of our problems come because we cannot sit by ourselves, alone with our thoughts, for even thirty minutes. Our society is filled with cheap dopamine, constant notifications, and screens everywhere we look. Take time to slow down and be present.
Meditation has already been demonstrated to reduce stress and enhance mental clarity. Meditation might be what you require if you’re grappling with burnout and finding that your performance has declined.
3. Surround yourself with optimists
Optimists are like the light in your life that you look for when you’re currently in the dark part of your life. Surround yourself with people who bring positive influence. You are the average of the five individuals you invest the most time with. Ensure that each of these five individuals can drive you toward your goals. Ultimately, exercise careful discretion in selecting those you allocate your time to. It’s effortless to draw in negative companions during personal struggle and despondency. However, true allies will aid you in rediscovering a positive trajectory once more.
4. Practice Gratitude
Gratitude is a key ingredient for living a fulfilling life. Gratitude helps people feel more positive emotions, build strong relationships, and improve their health. Take five minutes per day to write down five things you’re grateful for. Practicing gratitude also reminds you of all that you have: your friends, positive relationships, and good moments throughout the day.
5. Ask for Advice
Don’t underestimate the power of a mentor. Epictetus mentored Marcus Aurelius. Jobs mentored Zuckerberg. Buffet mentored Gates. Seek advice from people two to three steps ahead of you. You can access their lifetime of wisdom in two to three years. While reading self-help books helps, having access to a mentor is on another level.
6. Journal Every Day
Writing is essential to unleashing your creative potential. Writing or journaling daily builds discipline and allows you to organize your thinking. It also improves your vocabulary and communication skills. Mastering this skill will lead to success in the modern economy.
7. Invest in Yourself
We spend eight hours a day working for someone else, but many of us won’t take 30 minutes to work on ourselves. Invest in yourself through reading, exercising, and learning a new skill. Just 30 minutes a day can change your life.
8. Read Good Books
The most successful people in the world have one thing in common: they love to read. Read about things that interest you. Re-read your favorite books. Read every day. An hour a day of reading puts you at the top .01% of people.
9. Take a Cold Shower
A three-minute cold shower will provide benefits that last the rest of the day, like raising your ability to handle stress. Taking a cold shower increases dopamine, boosts metabolism, and burns brown fat, so anything else you have to do afterward will seem easy.
10. Set a Bedtime Alarm
After this alarm goes off, allow your mind to relax. Turn off all your devices. Take a warm shower or bath. Read your favorite fiction book. Setting yourself up for success the next day starts the night before.
Source: Reddit.
These 11 Movies Are So Bad You’ll Wish You Could Unsee Them
The movies we love best are a combination of excellent characters, plots, stories and cinematography. But if these factors can make great movies, they can also make terrible movies—the ones that make people cringe, the ones we swear they’ll never watch again.
These 11 Movies Are So Bad You’ll Wish You Could Unsee Them
10 Celebrities Who Are Universally Disliked
People will always have preferences and something to say about celebrities. What you might love may not be the same for others. Whether it’s about their past behaviors, legal issues, or feuds with other celebrities, here is a list of celebrities people just cannot stand.
10 Celebrities Who Are Universally Disliked
11 Vampire Movies That Will Leave You Yearning for More
Sometimes, we just love to watch a favorite vampire movie, one of the ones that never gets old. It piques our imagination with the unknown story of two teenagers fighting for their love, the incredible and creepy scenes, and the bloodsucking classics.
11 Vampire Movies That Will Leave You Yearning for More
25 Extraordinary Sequels and Remakes That Outshine the Originals
Every once in a while, a movie sequel or remake surpasses the original film. After polling the internet, “Name a single movie where the sequel or remake was better than the original?” Here are the top-voted responses.
25 Extraordinary Sequels and Remakes That Outshine the Originals
25 Blockbuster Films With Behind-The-Scenes Turmoil Unknown to the Public
Several big movies with significant nightmare productions have some seriously delicious tea. After a recent poll on the internet, here are twenty-five films with disasters that made filming difficult.
25 Blockbuster Films With Behind-The-Scenes Turmoil Unknown to the Public
Northwestern Mutual Will Help Nearly 2,000 Additional Milwaukee Students Enroll Over the Next Few Years, Advancing Quality Education in the City
Additional commitment of $5.7 million to support 40 Milwaukee-based nonprofits and schools, a bridge loan to Notre Dame School of Milwaukee for expansion of campus, as well as two grants supporting St. Marcus School and St. Augustine Preparatory Academy
MILWAUKEE, Wisc., Aug. 22, 2023 – Northwestern Mutual has long been committed to investing in high-quality education to help close the opportunity gap for Milwaukee-area students. Over the last 25 years, the company has contributed more than $60 million to support these efforts. Today Northwestern Mutual is committing to an additional $5.7 million to support 40 Milwaukee-based nonprofits and schools, which includes a bridge loan to Notre Dame School of Milwaukee and two capital grants to St. Marcus School and St. Augustine Prep. This will help to add an additional nearly 2,000 quality seats to classrooms over the next few years by expanding school campuses.
“Education is a core pillar to the work that we do at Northwestern Mutual. Milwaukee is home to a great number of talented students, and we want to continue to provide them with the foundation for a quality education and opportunities for career advancement,” said Steve Radke, president of the Northwestern Mutual Foundation. “We are thrilled so many additional students will have the opportunity to benefit from the education of these three schools.”
Notre Dame School of Milwaukee, St. Marcus School, and St. Augustine Preparatory Academy are high-performing schools serving students from some of the company’s partner neighborhoods within Milwaukee and recipients of the company’s financial support.
The Northwestern Mutual Foundation is investing in a $2 million bridge loan to Notre Dame School of Milwaukee to help purchase a third campus and increasing the number of high quality education seats, which will serve more than 300 students at the school’s new building over the next few years. The two grants will be issued to St. Marcus School and St. Augustine Prep with $450,000 and $225,000, respectively, adding capacity at the two schools.
Learn more about the schools and the company’s support here: www.northwesternmutual-foundation.com
About Northwestern Mutual Foundation The mission of the Northwestern Mutual Foundation is to improve the lives of children and families in need. The Foundation has given more than $400 million since its inception in 1992 and is designed to create lasting impact in the communities where the company’s employees and financial representatives live and work. We accomplish this by combining financial support, volunteerism, thought leadership and convening community partners to deliver the best outcomes. Our efforts are focused nationally on curing childhood cancer, and locally on education, neighborhoods and making our hometown of Milwaukee a great destination. Visit Northwestern Mutual Foundation to learn more.
About Northwestern Mutual Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what’s most important. With more than $558 billion of total assets being managed across the company’s institutional portfolio as well as retail investment client portfolios, nearly $35 billion in revenues, and $2.2 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 111 on the 2023 FORTUNE 500.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with “Advisor” in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.
A money market account is an interest-earning savings account, with some features of a checking account.
Saving money is the best way to prepare for unexpected life events and take control of your finances. But where is the best place to save your money?
If you’ve been researching different savings accounts, you may have wondered, “What is a money market account?” at some point. As of March 2023, interest rates for money market accounts are up to 4.45%,which is higher than normal.
Keep reading for a money market account definition, its benefits, and how it stacks up to other kinds of accounts.
In This Piece:
What Is a Money Market Account?
A money market account (MMA) is a type of savings account that earns interest at a bank or credit union. They are sometimes called money market deposit accounts (MMDAs).
MMA interest rates are usually higher than regular savings accounts and have some features of a checking account, like debit card and check-writing privileges, though there are more restrictions.
How Does a Money Market Account Work?
Money market accounts pay more competitive interest rates than a traditional savings account, with more access to your money than a high-yield savings account. They may also require a larger minimum deposit and balance than a traditional savings account.
As a hybrid between a savings and checking account, money market accounts have some unique features.
Interest: The interest rate offered by MMAs is typically higher than regular savings accounts. It is a variable rate, meaning it changes as the market changes.
Access to your money: Some MMAs come with a debit card and/or checks that you can use to make limited purchases.
Minimum balance: Money market accounts may have a required minimum balance, ranging from $0-$25,000. Each bank has different requirements, and they may scale for getting certain APYs.
Although money market accounts have some features of a checking account, they aren’t meant to be used as a replacement for a traditional checking account.
This is because money market accounts often limit you to six transactions per month. This includes withdrawals or payments by check, debit card, draft, or electronic transfer.
However, you can usually make an unlimited number of transactions in person or by ATM, mail, messenger, or telephone check.
Benefits of Money Market Accounts
Money market accounts are great for short-term savings goals, like an emergency fund. You’ll earn a higher interest rate than standard savings accounts while still being able to easily access your money if needed.
However, this type of account comes with its own set of restrictions. If you’re considering opening a money market account, consider these pros and cons.
Pros of Money Market Accounts:
Higher interest rates than traditional savings accounts
Safe place to keep money with insurance up to $250,000 per account owner
More access to your money than other savings accounts with debit card and check features
Cons of Money Market Accounts:
Lower interest rates than other accounts like high-yield savings accounts or CDs
Requires a higher minimum deposit and balance than traditional savings accounts
Monthly limit on number of transactions
Remember that every financial situation is different, and while a money market account may work well for one person, it may not be a good fit for another.
Money Market Account vs. Other Accounts
Money market account features overlap with different types of savings and checking accounts. The differences between these accounts may be important depending on your financial goals.
If you’re not sure if a money market account is best for you, see how they compare to other accounts.
Standard Savings Accounts
Interest type: Variable
Higher interest rates: No
Insured: Yes
Debit card/checks available: No
Minimum deposit/balance: Yes
The biggest difference between money market accounts and traditional savings accounts is access to a debit card and checks with an MMA.
Money market accounts also generally offer a higher interest rate than savings accounts. In February 2023, the average interest rate for an MMA was 0.48% and 0.35% for a traditional savings account, according to the Federal Deposit Insurance Corporation (FDIC). However, some banks like Discover and Ally are offering up to 3.4% on their MMAs.
The difference is not always that substantial, as MMA interest rates vary with the market. If you find that the interest rate for an MMA isn’t that much higher than your standard savings account, it may not be worth the higher minimum deposit and balance requirements.
High-yield Savings Accounts
Interest type: Variable
Higher interest rates: Yes
Insured: Yes
Debit card/checks available: No
Minimum deposit/balance: Yes
Money market accounts and high-yield savings accounts are very similar. Both offer higher interest rates than standard savings accounts and are insured. In March 2023, MMA and high-yield savings account interest rates were comparable.
One main difference is the addition of debit cards and checkbooks with an MMA, allowing you more access to your money than a high-yield savings account.
If you’re torn between the two options, make sure to compare interest rates, minimum deposit and balance requirements, potential fees, and transaction limits.
Checking Accounts
Interest type: Variable (or none)
Higher interest rates: No
Insured: Yes
Debit card/checks available: Yes (unlimited)
Minimum deposit/balance: Yes
While money market accounts have some features of checking accounts, they aren’t meant to replace a checking account. You still need a checking account for daily expenses, since MMAs are usually capped at six transactions per month.
Additionally, most checking accounts don’t earn interest, and if they do it’s a very low rate. These accounts work best when used together—one can’t replace the other.
Certificates of Deposit (CD)
Interest type: Fixed
Higher interest rates: Yes
Insured: Yes
Debit card/checks available: No
Minimum deposit/balance: Yes
A certificate of deposit (CD) and a money market account are both insured savings accounts that earn higher interest rates than standard savings accounts.
In fact, CDs can earn even higher interest rates than MMAs. They also have fixed interest rates, meaning your money will earn the same amount of interest during its life cycle.
In February 2023, the FDIC reported an average interest rate of 1.36% for a 12-month CD, with banks like Marcus by Goldman Sachs and Discover offering up to 4.5%.
However, the money you put into a CD gets locked up for a set period of time, usually months or even years. If you withdraw money early, you have to pay a penalty. This makes it the least flexible savings account option.
If you have extra money you’d like to safely invest, a CD is a great option. But if you prefer more accessibility to your money, a money market account is the better choice.
Money Market Funds
Interest type: Variable
Higher interest rates: Yes
Insured: No
Debit card/checks available: No
Minimum deposit/balance: Yes
It’s easy to get money market accounts and money market funds confused, or even think they’re the same thing. In reality, these accounts are very different.
Money market funds are offered by investment funds, not government securities like MMAs. This means while money market funds may have a higher interest rate, they’re not insured by the FDIC or the National Credit Union Administration (NCUA), so you could potentially lose money.
You will also have less access to your money with money market funds and may have to pay monthly maintenance or management fees.
Investing in a money market fund may be a good idea for someone who already has a large amount of savings built up in other accounts and is ready to diversify their assets.
Money Market Account FAQ
Still have questions about money market accounts? Check out the answers to these frequently asked questions regarding MMAs.
What Is the Interest Rate for a Money Market Account?
Money market account interest rates in February 2023 were 0.48% on average, but some banks are currently offering up to 3.4%. The interest rate on MMAs is variable, which means it can change depending on the market.
Are Money Market Accounts Safe?
Yes, money market accounts are a safe place to save your money. They are insured through your bank or credit union by either the FDIC or the NCUA.
Your money is insured up to $250,000 per depositor per account ownership category by both the FDIC and NCUA.
What Is the Typical Minimum Balance for a Money Market Account?
The minimum balance required for a money market account depends on the bank or credit union. Minimum balance requirements could be anywhere from $0 to $25,000 depending on the bank or current promotion.
Generally, you can expect MMAs to require a higher minimum balance than standard savings accounts, but you may be able to find an account with no balance requirements.
Some banks have one requirement for avoiding fees and another for securing a specific interest rate. Compare rates from different banks to find the best deal.
Is a Money Market Account a Savings Account?
Yes, a money market account is a type of savings account with certain privileges of a checking account, like a debit card and checkbook.
Money market accounts are a great way to safely earn interest while working toward a short-term savings goal. If you’re not sure that a money market account is a perfect fit for your savings goals, compare high-interest savings accounts.
Investing is a way to increase your wealth based on your risk tolerance and time horizon
The best investments for low-risk investors looking for moderate returns are index funds, government bonds, and high-yield savings accounts
The best investments for high-risk investors that want high returns are individual stocks, real estate, and cryptocurrencies
Investing is one of the best ways to grow your wealth and improve your financial future. One of the keys to finding the best investments is to recognize the power of compound interest. The credit bureau Experian® describes compound interest as “when interest gets added to the principal amount invested or borrowed, and then the interest rate applies to the new (larger) principal.”
There are many ways you can invest, and some investments earn more than others, and some investments are riskier than others. Today, you’re going to learn about the nine best investments in 2023 based on average returns as well as your personal risk tolerance.
The investing information provided is for educational purposes only. We recommend consulting a financial professional before investing.
The best investments
The best investments right now to grow your wealth include:
High-yield Savings Accounts
Short-term Certificates of Deposit (CDs)
Government Bonds
Corporate Bonds
Real Estate and REITs
Individual Stocks
Index Funds
Exchange-traded Funds (ETFs)
Cryptocurrency
1. High-yield Savings Accounts
High-yield savings accounts are similar to a regular savings account, but you’ll often earn more interest by keeping your money in one of these accounts. You can sign up for a high-yield savings account through many banks and credit unions, and some accounts can earn you anywhere from three to four percent annually.
If you have or plan on making an emergency fund, Javier Simon from SmartAsset recommends using one of these accounts. “Anyone looking to open a rainy day or emergency fund that provides a higher-than-average interest rate and high liquidity should consider a high-yield savings account,” writes Simon. You’re saving anyway, so why not make money from storing your funds?
Best investment for: People with lower risk tolerance and who are good at saving. This is one of the safest investments with high returns because many banks are FDIC insured, so even if the economy has a downturn, your money is backed by the government.
Risk level: Very low
How to invest: Banks, credit unions, and online banks
Potential returns: Moderate
2. Short-term Certificates of Deposit (CDs)
When looking for where to invest money, many people turn to certificates of deposit, which are also known as CDs. Like high-yield savings accounts, CDs are another type of account. CDs work by allowing you to deposit your money with the caveat that you don’t withdraw the money for a certain amount of time. Once that time frame expires, you’ll receive your money back as well as the interest.
Best investment for: People willing to store their money for one, three, or five years, which are the average predetermined time frames. Just remember, unlike a savings account, there’s a fee for withdrawing your money early.
Risk level: Very low
How to invest: Banks and credit unions
Potential returns: Moderate returns that sometimes exceed those of high-yield savings accounts
3. Government Bonds
Sometimes, the government needs to borrow money, so they offer people the option to loan them money via government bonds. Like CDs, these bonds are for a specified period, but they provide regular payments. Peoples sometimes use bonds as one of the best passive income investments due to these payments.
One caveat to note is the return on government bonds varies depending on how the economy is doing.
Best investment for: People with a low risk tolerance often buy government bonds. Unless the government fails, there’s not much that will prevent getting your return from this investment. Unlike other investments, government bonds can last for up to 30 years.
Risk level: Very low
How to invest: The United States Treasury or through a stock broker
Potential returns: Low
4. Corporate Bonds
Like government bonds, corporate bonds are loans, but you’re providing that loan to a company. This investment helps companies that need money to invest in new products and expand their business. Since these aren’t backed by the government, they can be riskier because the company may go out of business. Although these have a higher risk, they also have a higher return than government bonds.
Best investment for: Individuals with a higher risk tolerance and are looking for higher returns may want to invest in corporate bonds. These bonds pay out regularly, and they’re a safer investment when buying bonds from large, stable companies that have been around for a while.
Risk level: Moderate to high
How to invest: Stock brokerages
Potential returns: High
5. Real Estate and REITs
One of the investment ideas many people turn to is real estate because it can provide extremely high returns when the housing market is good. The downside is that when the housing market has a downturn, as we saw in 2008, people experience big losses.
Rather than investing in real estate, you can invest in real estate stocks, which are called real estate investment trusts (REITs). These stocks are for companies that own properties like malls, office buildings, and other forms of real estate that generate revenue. These can be slightly less risky but still have some risk due to the nature of real estate.
Best investment for: Those who are looking for high returns or have a diversified portfolio already and can weather some higher-risk investments.
Risk level: High
How to invest: Mortgage broker for real estate and stock brokerages for REITs
Potential returns: High
6. Individual Stocks
Individual stocks are available to everyone, and when the average person buys these types of stocks, they’re known as “retail investors.” You may have heard of retail investors investing in individual stocks during the GameStop stock hype of 2021, which also showed how risky individual stocks can be.
Individual stocks come with a high risk and high reward. Basically, you’re buying a portion of a single company, also known as a share of the company. Numerous factors dictate the price of a stock including the profits or losses of the company as well as speculation of the future of the company.
Best investment for: People who are looking for higher returns and don’t mind the risk may want to invest in individual stocks. These stocks can involve doing a lot of research into a company in order to make a quality decision. It’s possible for single stocks have the potential for large returns and losses. For example, investing in Amazon (AMZN) in 2018 and selling in 2021 would have over a 100 percent return, but buying in 2021 and selling in 2022 would have a 50 percent loss.
Risk level: High
How to invest: Stock brokerage
Potential returns: Low to high
7. Index Funds
Index funds are a type of stock, but rather than owning one stock, you’ll own multiple stocks. These stocks track a specific market, like the S&P 500 or the Dow Jones. When purchasing an index fund, there are often low fees and steady returns. The famous investor and founder of The Vanguard Group, John C. Bogel, popularized investing in index funds. This type of investing is popular because indexes like S&P 500 index funds track the 500 largest companies in the United States.
Best investment for: People who are new to investing as you don’t need to regularly check in and research different companies because index funds track the top companies in the U.S.
Risk level: Low
How to invest: Stock brokerage companies
Potential returns: Moderate
8. Exchange-traded Funds (ETFs)
Exchange-traded funds (ETFs) are similar to index funds because your single stock has shares of multiple companies, but ETFs are usually for specific industries or categories. For example, ARK Invest is a well-known ETF that often invests in technology companies, and there are other ETFs that have an assortment of bonds, like Vanguard’s Bond Market Index Fund (BND).
Best investment for: People with a moderate level of risk tolerance. ETFs can be thought of as a mix between index funds and individual stocks since they’re riskier than index funds, but they’re less risky than individual stocks because you’re more diversified.
Risk level: Moderate
How to invest: Stock brokerage
Potential returns: Low to high
9. Alternative Investments
Cryptocurrency trading is a hot topic, but many people don’t fully understand how it works. Cryptocurrencies are a digital form of currency that’s traded on a network known as the blockchain. The first cryptocurrency was Bitcoin, and now, there’s an endless number of cryptocurrencies. Many people have become millionaires or billionaires from investing in crypto, but it’s an extremely volatile market, and many more have also lost their life savings.
Currently, there is very little to no regulation around cryptocurrency, and much of the investing involves speculation. Notable investors like Warren Buffett and his business partner Charlie Munger have been highly critical of crypto investing, calling it, “worthless, artificial gold.”
Best investment for: People with a high risk tolerance and can tolerate losing their investment may find high returns with crypto investing.
Risk level: Very high
How to invest: Crypto exchanges
Potential returns: Very high
How to Choose the Best Investments
There’s no single right way to choose the best investments because it’s dependent on your unique situation. To make the best choice for yourself, you’ll need to assess your personal risk tolerance and when you’re hoping to cash out on your investments.
1. Assess Your Risk Tolerance
When it comes to investing, the higher the risk, the higher the reward, but it can also mean bigger losses due to unforeseen circumstances. While looking at the top nine best investments, consider how risky they are and whether or not they’re right for you. If you’re concerned about losing money and simply want steady, average returns from your investments, you may want to choose investments that are lower risk.
2. Gauge Your Time Horizon
An important aspect of investing is when you plan on needing the returns from your investment. Many people invest as a way to save for retirement, but some people invest in order to make money to pursue another goal, like purchasing a new home or going on a big trip. For those with a longer time frame of 10 or more years, you can tolerate making low-risk investments with steady returns. If you need the returns sooner, you may want to look into taking more risks.
A simple way to invest based on your time horizon is to use target date funds. The United States Securities and Exchange Commission describes target date funds as being “designed to be long-term investments for individuals with particular retirement dates in mind.” With this type of fund, you set the date you plan on retiring or selling your investments, and it will automatically adjust for risk.
3. Recognize Your Personal Investment Knowledge
Investing does come along with some risks, and these risks vary depending on which type of investing you do. For example, investing in a high-yield savings account is much less of a risk than investing in individual stocks. As a way to minimize your risk and be fully aware of the risks you’re taking, it’s helpful to educate yourself further on each investment and gauge your personal knowledge.
There’s always room to grow your investing and personal finance knowledge. Even the greatest investors in the world continue to learn as much as they can about investment strategies.
4. Assess How Much You Can Budget for Investing
When getting started on your investment journey, it’s often a good idea to minimize your debts as much as possible before creating a budget. For example, if you have a high amount of credit card debt, the interest you’re paying will counteract the money you’re putting into different investment opportunities.
Once you have minimal debt, you can create a budget to see how much you can invest each month. With many of the investments covered here, you can set up automatic investments to make the process a little easier as well.
Best Investments: FAQ
Now, you know about various investments as well as the risk associated with each one. The following are some additional frequently asked questions to help you get started with investing.
What Is Compound Interest?
Compound interest is when the money you make from interest starts making you additional money as well. For example, with a 10 percent interest rate, $1,000 would make you $100. The following year, you’d earn 10 percent interest on $1,100 because that extra $100 you earned will earn interest as well.
Without investing anything else, your original $1,000 investment will be more than double your original investment in 10 years.
Which Investment Gives the Highest Returns?
Investments that have the highest return opportunities include real estate, individual stocks, and alternative investments like cryptocurrencies. Just be sure to keep in mind that these investments also come with the most risk.
Is It OK to Invest During Times of Uncertainty?
Investing during uncertain times can bring better-than-average returns later on. Marcus by Goldman Sachs recommends taking the long view when making your investments. Even during a bad economy, historical data shows that it eventually recovers. You’ll just need to assess your risk and decide if you can weather the storm until it rebounds.
Should You Invest with Bad Credit?
Investing is a way to save for your retirement or future purchases, and it can increase your overall net worth. If you have bad credit or a lot of debt, it may be best to wait on investing because that money could go to paying off debt, improving your credit, and increasing your financial security.
If you need help improving or repairing your credit score, allow Credit.com to help. We have services like ExtraCredit, and we can also provide you with a free credit report card. We’ll be there to help you learn how to improve your credit as well as other ways to increase your wealth, so sign up today!
Rithm Capital Corp., the real estate investment trust that operates NewRez, Caliberand several other businesses, entered into a definitive agreement to acquire Sculptor Capital Management Inc. for $639 million, the company announced on Monday.
The deal, if approved by regulators, will bring to Rithm Sculptor’s $34 billion of assets under management, including real estate, credit and multi-strategy investing spectrum. To Sculptor, Rithm will provide capital to accelerate growth across sectors and seed new funds and strategies.
Rithm is paying $11.15 per Class A share of Sculptor – a premium of 18% over the closing price on July 21 – with cash on hand and available liquidity. The transaction is expected to be neutral to Rithm earnings in 2024 and accretive in 2025.
In the first quarter of 2023, Rithm had a GAAP net income of $68.9 million, compared to $81.8 million in the previous quarter. The company had $1.4 billion in cash. Rithm is scheduled to release second-quarter earnings on August 2.
Michael Nierenberg, chairman, CEO and president of Rithm Capital, said in a statement that the transaction is “transformational.”
“Sculptor’s $34 billion of AUM coupled with Rithm’s $7bn of permanent equity capital and $30+ billion balance sheet creates a world-class asset management business,” Nierenberg said.
Sculptor will operate as a subsidiary of Rithm, led by Jimmy Levin as CIO and executive managing partner, who will report to Nierenberg. Sculptors’ investment and leadership teams will continue in their roles.
“We have long sought a partner with the stable capital structure, culture and vision to help unlock the potential for our platform to deliver more and greater value to our fund investors,” Levin said in a statement.
Sculptor formed on November 17 a special committee of independent directors to explore potential transactions. Sculptor’s leadership has agreed to vote their shares, representing about 26% of the outstanding voting shares, in favor of the transaction. The board of directors of Rithm and Sculptor have approved the deal.
The transaction, subject to customary closing conditions, is expected to close in the fourth quarter of 2023.
The deal with Sculptor comes four days after Rithm’s acquisition of $1.4 billion worth of unsecured personal loans from Goldman Sachs‘ Marcus business unit. Rithm bought the portfolio at a discount, Nierenberg told Bloomberg.
“This purchase is extremely attractive to us building off our past and current expertise in consumer finance,” Nierenberg said in a statement.
In another potential transaction, Rithm said in May that it was considering spinning off the mortgage division to aid its flagging stock, which company executives described as “extremely undervalued.”