Steps to Move from Savings to Investing

I’m not ready to invest. I’m just not. I’m afraid of putting my money in a brokerage account and trying my hand at the stock market. We do have retirement accounts. In my mind that isn’t investing. Not really. It doesn’t come with a tax bill at the end of the year. It isn’t money ever see in my bank account, therefore it isn’t money to lose.

How do we make the step from a family that earns interest to a family that pays interest? High yield savings accounts. I’ve mentioned my three big savings accounts before. Four if you count the emergency fund. Each of these accounts has more than the minimum limit for a high yield savings account. Limits are bank dependent and there isn’t a law about only having one bank.

My January interest in a regular savings account if it had $1,000 in it would have been a whopping 35 cents. Well 0.35720664 according to my math but I always round down when figuring what I’ll get. What would I have gotten in a high yield savings account? I would have gotten $3.17 ($3.17826087 if you want to be technical). I’m not even conversational in APY, but for those who are the current APYs on regular versus high yield is 0.50% and 3.80% respectively. Do either of these number make a huge difference in our life? No, not at all. But with having as many of my accounts high yield I get almost $100 extra a month. That’s more than enough to help slowly move the needle on a savings goal. Enough to get a little something extra for yourself or your family.

It’s not the money I would make if I opened a brokerage account. I’m not there yet. It is enough to help me get there faster. It is enough to meet a money goal I thought wasn’t going to be accomplished.

If you, like me, aren’t at the building a stock portfolio outside of retirement accounts level yet. Make sure you keep high yield savings accounts in mind.

P.S. If this was useful my one-page Sinking Funds Tracker is in the shop, or you can tip on Ko-fi or PayPal. One tiny move is progress.

This post reflects my personal experience and opinions. I share our real-life money – rounded numbers, personal choices, (tiny) next steps. It is not financial advice. I’m not a financial advisor. Budgeting and money topics are shared for education and entertainment only. Your situation is unique; verify details before acting. Small steps count.

Personal experiences only—this isn’t professional advice. See Disclosures and Terms.