Even households where there's only one income can take advantage of different short term investment options that will help grow any extra money that comes in. Whether you're a work at home mom or a 1099 contractor or self-employed business person, taking the time to look into different investment strategies can mean you end up saving more of what you earn over time.
- Your 401k - The 401k options that companies offer are often some of the most short term investment opportunities around. That's because companies tend to change or drop these benefits over time. However, if you currently have a 401k or matching saving fund, the time to invest is now. These accounts will usually go with you when you leave a company, but you may lose the ability to deposit into them at any time.
- IRAs and Retirement Accounts - The government has provided some options for tax-deferred saving in the form of retirement account. These may not be "short term" in that you can get your money out right away, but during the short term, for example, your tax year, you can save more by avoiding heavier taxes on what you are depositing into savings.
- Money Market Accounts - These alternatives to a conventional savings account may accrue more interest each year than what you would get just "parking" your money in savings. There's also no long term requirement on most of these, making them a good choice for short term investors who don't want to miss out on slightly higher interest rates.
- Special Bank Offers - Some banks are now offering customers unique ways to get high interest savings accounts. Ask your bank if they have any special products that could help maximize your stored funds.
- ETFs - Exchange traded funds or ETFs offer diversified investing in stocks, bond, commodities or just about anything else. These handy funds are traded through major exchanges and they can be an option for investing without going "extra long" on stock or equities. Learn more by visiting the companies offering these funds online and finding out about how you can get your money into a sector or product you like.
- Microloans - Some households interested in modern investing are looking at microloans set up by third party facilitators in which investors simply loan out money to those who want to borrow, taking the interest that would normally go to big banks. With the right setup, you can track your microloans, manage risk, and arrange for interest money to come your way!
- Options - Another kind of short term investment is only for experienced traders. Options are efforts to predict the short term movement of a stock and make money on quick buying and selling. Look into online brokerage account offers and see how you could get access to this "inner circle" kind of investment activity.
Consider all of the above for opportunities to make some of your household savings grow.