where to keep your money

Everyone tells you to invest your money, but no one's telling you where to actually put it. So here are the four bank accounts that you need to know the differences between. So starting off with a high-yield savings account. This is literally just like a normal savings account, but you're actually able to earn interest on any money that you have setting in the account. So it's a great place for any emergency fund or any money that you plan on spending in like the very near future. It is completely risk-free and this money stays liquid, meaning that you can take it out at any time without any penalty. Next up is a 401k. So this is a retirement account and it's often offered by an employer and a lot of times the employer will offer a match money too. So if you have this as an option, definitely start there. But technically, if you are self-employed and don't have an employer, you can open a solo 401k, which will lower your taxable income. And I only recommend doing this if you plan on maxing out your Roth IRA for the year. Leading me to my next account, which is a Roth IRA. So this is another retirement account where you can withdraw that money tax-free when you're 59 and a half. So if your employer doesn't offer a 401k, this is where you'd start investing for retirement. But there is income and contribution limits. So if you make over $153,000 singly as a single filer in a year, then you would have to do a back door Roth IRA method. And you can only contribute $7,000 as of 2024. Lastly is a brokerage. So think like a normal investing account, but there's no contribution limits. You can put as much money as you want in and you can take as much money as you want out at any time without any penalties. The only downside is that there's no tax benefits like a 401k or a Roth IRA. But there is good for both long and short term investing. But yeah, hopefully this video was helpful. Obviously, you don't have to go and open every single one of these accounts today, but if you want to get serious about managing your finances, like go and order open these one at a time and I promise your future self will thank you. But yeah, if you don't already have a high yield savings account, the very first step is to find the one that I use and possibly get up to $400 cash back at the top of my page. But yeah, if you don't already have a high yield savings account, the very first step is to find the one that I use and possibly get up to $400 cash back at the top of my page.