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Labor Day marks the unofficial end of summer, a time when many Americans gather with family and friends for barbecues, beach outings and relaxation. But as we take the time to honor the contributions and achievements of American workers, it’s also fitting to consider how to make the money you earnwork harder for you.
After all, ensuring that you’re on a path to financial stability is incredibly important, especially right now. In today’s economic landscape, inflation and other economic hurdles are still having a big impact on many people’s finances — and so are the high borrowing rates tied to personal loans and credit cards.
But in addition to those challenges, there are also some simple ways to capitalize on today’s unusual economic climate and set yourself up for financial success. Here, we’ll detail a few ways to do that this Labor Day.
Set yourself up for success by adding gold to your portfolio this Labor Day.
3 simple money moves that could pay off this Labor Day
By making the smart money moves outlined below, you can potentially reap significant benefits in the months and years to come.
Invest in your future
If you’re not already investing, this Labor Day is an excellent time to start. If you are investing, use this opportunity to review and potentially rebalance your portfolio. Begin by assessing your retirement savings. Are you maximizing your contributions to tax-advantaged accounts like 401(k)s or IRAs? If not, consider increasing your contributions, even if it’s just by a small percentage.
You may also want to look at other investment opportunities, too. One alternative asset worth considering right now is gold. This precious metal can offer a lot of value to investors between its role as a portfolio diversifier, a safe-haven asset and an inflation hedge. There are also numerous gold assets to choose from, including physical gold, gold stocks and gold ETFs, and investing in a gold IRA can even help you prepare for retirement.
It could also be a smart time to invest in gold if your goal is to see quick returns on your investment. While gold is typically considered a long-term investment, the price of gold has been increasing since the start of the year and has increased by hundreds of dollars so far — and it could continue to climb. So, there could be the opportunity to capitalize on future price growth if you make your move now.
Find out how gold could boost your investment portfolio here.
Start tackling your credit card debt
Another smart move to make this Labor Day is to address your credit card debt. With average credit card interest rates sitting at around 23% (a record high), it’s crucial to find effective solutions to manage and reduce this financial burden.
Start by taking a comprehensive inventory of your credit card debts so you understand the full scope of your debt. Once you have this information, consider the following strategies to tackle your credit card debt:
Debt consolidation: This approach involves combining multiple credit card debts into a single loan, ideally with a lower interest rate.Balance transfer: Look for cards offering 0% or low introductory APR on balance transfers. This can give you a window of time (often 12-18 months) to pay down your debt without accruing additional interest.Debt settlement: If your debt feels unmanageable, debt settlement might be an option. This involves negotiating with creditors to pay less than what you owe, typically in a lump sum. A reputable debt relief company can help you navigate this process and negotiate with creditors.
There are plenty of debt relief strategies to choose from, but the key is to act now and commit to a plan. Becoming debt-free is a process and every step you take brings you closer to financial freedom.
Learn more about the debt relief options available to you here.
Boost your emergency fund
Your emergency fund is a crucial component of your financial stability, providing a safety net in case of unexpected expenses or loss of income. And this Labor Day is a good time to consider whether it’s sufficient given your current lifestyle and financial obligations. Has your income or expenses changed significantly? If so, you may need to adjust your strategy.
One way to do that is to look for opportunities to boost the returns on your savings. To do that, you may want to move your emergency fund from a regular savings account to a high-yield savings account, many of which offer rates well above 5% right now. These accounts work just like your typical savings account but the difference is that they offer higher rates on your money.
You may also want to consider putting some of your emergency funds into a shorter-term certificate of deposit (CD). Rates on CDs are fixed, so by opening one with a short term, you could lock in a higher rate of return without drastically hindering access to your money.
The bottom line
This Labor Day, take some time to reflect on your financial goals and commit to taking action — whether it’s investing in gold, finding a solution for your high-rate card debt or maximizing the earning potential of your emergency fund. Small steps taken consistently can lead to significant improvements in your financial health over time, so don’t wait. As you enjoy the holiday weekend, you’ll have the added satisfaction of knowing you’ve taken concrete steps toward a more secure financial future.
Angelica Leicht is senior editor for Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
