Working Hard, But Hardly Able To Save Money? 5 Practical Ways A Certificate Of Deposit Works As Hard As You Do

Does it seem like no matter how many hours you work in a week, your paycheck still doesn't go far enough? Do you feel like your savings account isn't growing as fast as you'd like it to? If so, you're definitely in the majority, as more and more Americans struggle with debt and try to wrangle themselves into a better financial position. As hard as you work, if your money isn't working equally as hard, it's going to be much more difficult, if not impossible, to ever get ahead.

Consider the following ways in which a certificate of deposit (CD) can help you advance your financial goals by working hard, like you:

1. Helping You Save For A Major Purchase

If, for example, you know you're going to want to buy a new car or house within a year or two, a CD is a great place to put the money you'll need for that expense. It keeps the cash ready and waiting for you, gaining interest all the while. On the other hand, you could keep the money in your regular savings account, where it could be whittled away by the various expenses that always seem to pop up.

2. Preventing You From Spending More Than You Should

A certificate of deposit mandates that you maintain the account for a specific amount of time without ever dipping into the money; for a lot of people, this can be an excellent way to make sure they save money. It's all too easy to upgrade your phone when you really don't need to, or to get a bigger television when the one you have now is already big enough.

Especially when you consider the ease of ordering online and having trendy new products delivered right to your door, saving money in this day and age is difficult, but a CD can make it a snap.

3. Allowing You To Invest, Even When Your Cash Flow Is Chaotic

If there's a dog in your household, you're likely to spend around $15,000 on it over the course of its lifetime. If you have children, you know how quickly they outgrow clothing, toys, and all their other necessities, adding up to unthinkable amounts of cash for you. Throw in a few unexpected expenses here and there, like home and auto repairs, medical and dental expenses, and the occasional night out, and it's a wonder you have any money left over for investing at all. 

A long-term CD, such as one that lasts around a decade, allows a certain amount of your money to keep working for you, untouched by the cash flow chaos. No matter how crazy the week-to-week spending becomes, you always have something saved that can't be affected by the usual drains on your wallet.

4. Building A Retirement Nest Egg

With a volatile economy, choosing how to build your retirement nest egg can be challenging; however, since CDs are FDIC insured and have predictable annual percentage yields (APYs), your retirement savings are safe. A conservative investment will, with interest, provide you with a decent amount of additional funds, so you can see how much wiser a CD can be than other investments. Nobody wants to gamble on their retirement, and you really don't have to, if you know how to keep the money working for you in a stable but profitable way.

5. Giving Your Kids A Brighter Future

CDs work hard at helping your kids have a better future. You can open a bank account on behalf of your child and then fund a CD with a deposit, or you can purchase CDs in your own name early in their lives with the intent of putting that money toward college later. Students from the graduating class of 2018 left college with an average debt of nearly $30,000, which is a tough way to start out in life. If any of those grads had a CD that was bought when they were a toddler, their CD could take a chunk of that burden away.

It is not easy getting ahead, regardless of whether you have debt, multiple jobs, or a houseful of children. CDs are a useful tool that can help you in a number of ways, and you should take advantage of them, especially considering how hard you work for your money. For more information about CD rates, reach out to financial institutions that offer CDs.