Have $5k+ In The Bank? Here Are 5 Smart Money Moves to Try in 2023.

Congratulations on having a solid financial foundation!

Having $5,000 or more in the bank is a significant achievement that opens up a world of possibilities for you.

Now, as we step into 2023, it’s crucial to make the most of your hard-earned savings and take smart financial steps that can propel you towards a brighter future.

In this post, we will discuss five strategic money moves that can help you grow your wealth, secure your finances, and make the most of the opportunities that lie ahead.

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1. Switch to a savings account that pays you up to 10x more interest.

If you’re like the average American, your savings account pays you virtually zero interest (typically under 0.3% a year, in my experience).

Believe it or not, plenty of banks are willing to offer 10x that rate. PNC, for example, has an account that pays a whopping 4%/year right now (with no minimums).

(E.g. if you store $100k in a 4% interest savings account today, in a year you’ll have netted $4,000 from interest alone)

PNC doesn’t have minimum deposits or monthly service charges, so they’re a good option to consider, but here’s a list of some viable banks in your area:

2. Refi your car payments – avg savings: $143/month

Rates have prob changed since you bought your car, and other lenders can likely get you a better deal than your dealership gave you.

Use a company like iLending or Upstart (typically takes a few minutes to do).

3. Refi your student loans – avg savings: $18k over the life of the loan

Same basic strategy as above. Huge savings potential here:

A 2018 report from Credible said the avg. savings for a student loan refi was $18,000.

Companies that do it: CollegeAve and Splash Financial (both are solid options)

4. Stop paying overdraft fees – avg. savings, $250/year

The average person somehow pays $250 in overdraft fees every year (according to the CFPB), because banks are awful.

A quick fix: switch your bank to Current (or a similar app). Has zero overdraft charges, high savings rates (up to 4%), and the ability to get your paychecks 2 days early.

5. Invest the change from almost anything you buy

Get an app like Acorns. They round up your spare change to the nearest dollar and then auto invest it. E.g. you buy a coffee for $4.25, they’ll round the purchase up to $5 and invest the $0.75 for you.

That’s all (for now).

Thanks for reading! We’ll update this post monthly as new options become available.