Thirdly let those CD’s Spin! CD’s (and not that those shiny music machine discs) or Certificates of Deposits are glorified savings accounts. Generally purchased through a bank they offer higher percent of return on investment. The downside to them is that you are unable to pull your money out early in many cases (and the cases that you can often result in heavy penalties).

One great system for managing your CD’s is to set them up so they each mature a month after the next, therefore if you end up needed the capital back there is a CD maturing soon. and of course if you don’t need the money you still just roll it over for another year of very secure money making.

I like to keep this CD system because it is a good use of emergency money. Technically I know that a CD is a form of saving, but since I plan on not using them and instead save them for the future they are kind of like very secure investments. I know that if I ever really need them, I can get it within a few weeks if I need it, for instance, say I need $900 next week, well I put it on my credit card temporarily, CD matures in 3 weeks, so 2 weeks from now I have $1k coming in to pay off CC, no charges, no interest paid to the evil credit cards (I always pay it off every month but more on that later).

Read Also

* The Power of a Savings Account
* Investing – Bonds(2nd of 5 part special)
* Investing – Stock (1st of 5 part Special)