About 2 months ago, during my most recent bout with the Shanghai Shivers, I was thinking about how much I like making money, but was enjoying not being at work. I was also worried that the Covid would eventually leave me disabled and poor, as we have been condemned to catch it over and over again in an environment with deteriorating healthcare infrastrucure.
The obvious answer to my dilemma is to park my money where it will grow. I have financial products that are doing that, but they’re intended for retirement and unreachable for the time being. What I’d like, is a more short-term return.
Enter Certificates of Deposit, or CDs. These are short term products that generate a return in as little as 6 months (perhaps shorter in some cases). Simply select a CD from your bank or financial institution, specify a date of maturity if given the option, as well as how much you want to put away. One the maturity date, the money, plus a little extra for interest will be unlocked for you.
The benefits of this are twofold: first, it will mitigate the depreciation from inflation of your nest-egg. Second, because the money is effectively locked, it will act as a sort of bumper to guide you toward your savings goals. As a bonus for those who are paid biweekly, you can time them in such a way that you get a little extra cash between paychecks to keep you afloat and spare you from eating dinners of ice soup.
