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What 3 degrees in America did not teach me but TikTok did has to do with a high-yield savings account. Recently, I was talking to my friend about potentially saving for the down payment on a home. Neither of us owns a home right now. We are both in our early 30s and we both have PhDs in physics. So we each have a Bachelor’s, a Master’s, and a Ph.D.! Not one of these degrees taught us anything immediately useful about money or how to do a down payment on a home in this extremely unaffordable housing market. But hopefully, this blog post will.
Going to graduate school may set you back financially…
Basically, doing a Ph.D. can severely set you back in terms of growing any substantial savings in your 20s and perhaps well into your 30s. But if you are aware of this issue, you can be leaps and bounds ahead in terms of personal finance management. What I learned recently but could have easily learned far earlier has to do with specific financial accounts or vehicles that are at our disposal even when our income is low.
Income during graduate school
By low I mean I was making around or under about twenty-five thousand dollars till the age of 27. From 22 to 27, I was working on my Master’s and Ph.D. degrees and earned a humble stipend. Tuition, fees, and health insurance were covered with scholarships, so I made some money rather than have to pay for school which in itself is a good deal, but I did not earn what many would consider a good salary in America and had very little savings from those years of graduate school.
The point is that even when our incomes are low, there are ways to start building up some savings or at least have the right accounts opened that we can start getting into the habit of contributing to. Otherwise, there is just that much more catching up to do when you graduate.
Years after I left graduate school, I learned about these 2 things that I hope you learn sooner:
- the high-yield savings account which is basically a savings account to keep your extra cash or savings and earn much better interest than regular checking or savings accounts at banks will pay;
- the Roth IRA which is ideal for contributions with post-tax money especially when your income is lower like in graduate school and you have no access to a 401k
I learned about both on TikTok and share some pertinent videos below!
The first step of personal finance applies to a high-yield savings account
First, let me provide more information on the high-yield savings account because this is related to the first step in personal finance! The first step is to build up your emergency fund and then part B of that step is to have a place to put it. Ideally, you want to earn some interest on your built-up cash. This is possible with a high-yield savings account without the risk of losing the money like you might with stocks or mutual funds. And you can easily access this cash if needed.
I also encourage investing in stocks and mutual funds but that is not the FIRST step. The first step is always having a pot of cash for emergencies or perhaps even the down payment on a home. Also, do your own homework, don’t take my word for it on any of this general guidance.
The Importance of High-Yield Savings Accounts: Using Marcus by Goldman Sachs as an Example
In today’s low-interest rate (in the normal checking or savings accounts) environment, it can be difficult to earn a significant return on your savings. However, there is still a way to grow your money: by opening a high-yield savings account.
A high-yield savings account is a type of savings account that offers a higher interest rate than traditional savings accounts. This means that you can earn more money on your savings, even if interest rates are low.
One of the best high-yield savings accounts on the market is Marcus by Goldman Sachs. Marcus offers a competitive interest rate, no fees, and no minimum deposit. You can also open an account online in just a few minutes.
Here are some of the benefits of using Marcus by Goldman Sachs for high-yield savings:
- Competitive interest rates: Marcus currently offers an interest rate of 5.15% APY. This is significantly higher than the national average of 0.06% APY.
- No fees: Marcus does not charge any fees for account maintenance, ATM withdrawals, or online transfers.
- No minimum deposit: You can open a Marcus account with just $1.
- Easy to use online platform: Marcus’s online platform is easy to use and navigate. You can easily transfer money between your accounts, set up automatic transfers, and view your account activity.
If you’re looking for a high-yield savings account that offers competitive interest rates, no fees, and an easy-to-use online platform, then Marcus by Goldman Sachs is a great option.
How to Open a Marcus by Goldman Sachs Account
To open a Marcus account, you can visit the Marcus website or download the Marcus app. You will need to provide some basic information, such as your name, address, and Social Security number. You will also need to verify your identity.
Once you have opened your account, you can start transferring money from your existing bank account. You can also set up automatic transfers to help you save money on a regular basis.
Tips for Maximizing Your Earnings with a High-Yield Savings Account
Here are some tips for maximizing your earnings with a high-yield savings account:
- Make regular deposits: The more money you deposit in your high-yield savings account, the more interest you will earn.
- Set up automatic transfers: This is a great way to save money on a regular basis.
- Compare interest rates: Not all high-yield savings accounts offer the same interest rate. Be sure to compare interest rates before you open an account.
High-yield savings account by Tori Dunlap — Money Expert 💸
https://www.tiktok.com/@herfirst100k
@herfirst100k Link in bio for my recommendation! #debtfree #budgetingtips #savemoneytips
A high-yield savings account is a great way to grow your money, even in a low-interest rate environment. Marcus by Goldman Sachs is a great option for high-yield savings, as it offers competitive interest rates, no fees, and an easy-to-use online platform.
If you’re looking for a high-yield savings account, I encourage you to open a Marcus account today.
Personal finance strategy: What I wish I did in graduate school
Roth IRA by Tyler | Finance & Wealth
https://www.tiktok.com/@socialcap
Tyler shares: The Power of the ROTH IRA!! There are few (if any) tax-advantaged accounts that have as many benefits as the Roth. In the below video, Tyler explains the tax advantages of a Roth IRA.
The blog post above goes into detail about contribution limits for a Roth IRA and explains how that would have been good to start doing in graduate school. Don’t underestimate the power of compound interest!
@socialcap Why the #rothira is here to stay! #retirement #financialliteracy #personalfinance #taxes #retireearly
I learned about both high-yield savings accounts and Roth IRAs from TikTok – who knew? Keep in mind that I am an immigrant to the USA and did not grow up here so I am still learning about my options to save and grow money. If you find anything useful or have anything to add to this, feel free to do so in the comments!
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