Saving money is the hottest trend going on right now.  People are working hard to get out of debt and start saving money.  While there are many different of avenues to save money, what are some good options for beginner savers and people that have problems with keeping money in savings?

Did you catch the James Bond themed title?  It is in honor of over 50 years of James Bond.

There are two good options for beginners savers to start down the right path to financial success.  Savings accounts and bonds are still the easiest and most popular ways to save money.  They are super easy to setup and can get people in the right mindset to save money.    Isn’t that the goal?

There may be some of you that want to grab your computer screen and yell at me about these two saving vehicles, but I am thinking more of creating the correct mindset for individuals.  We need to take back the saving mindset and push out the buying mindset.  Saving money is very important in any financial lifestyle and it promotes financial readiness.  Isn’t that what we need to promote?  I think so.

There are pro’s and con’s to saving money with a traditional savings account.  One big pro is that your cash is fluid and can be accessed with ease.  The biggest con is that you really don’t earn much of anything.  The average APR is 0.15%.  That is not much.  There should be no reason that you don’t have a savings account either at a bank or at an online bank.  The choice is yours.

Bonds are still viable

There is some talk about that bonds are no longer a viable investment vehicle.  While I think they may be less viable than they used to be, I still think they are good for beginner savers and people that have problems handling their money.  You might want to talk about how bonds might have trouble keeping up with inflation, but that affects traditional savings accounts more than bonds.  Let me explain what I am talking about.

Out of Sight, Out of Mind

This principle is great for any saver.  When you sock money away and don’t think about it, you are less likely to pillage from your savings account.  If you are going to take money out of your savings account because you aren’t good at budgeting, then what is the point of saving?

Bonds are good because they come in different forms.  They usually last from a year to many years and there are interest penalties for cashing them out.  Those penalties are good incentives for not touching the money and letting it compound.  Interest payments can be paid on different intervals such as monthly, semi-annually, or annually.  The interest rates are not as good as they used to be, but they are more than a standard savings account.

Bonds are issued by different organizations, like the government, credit institutions, companies, banks, and building societies.  With all the options, you can make sure you are getting the best fixed rate bonds that are available.

If you feel that bonds are no longer viable, then I will still disagree with you.  They should be considered for any new saver, people with poor money management, and for anyone that want to diversify their money.  While I have a few different investment accounts to run stocks and mutual funds, I also have a few bonds that are growing each and every year.  I plan on keeping my bonds until they mature and then I might invest those funds into a few other bonds along with into my Roth IRA.  I also plan on giving my son a few bonds to start him out on his path to financial success.

Do you think bonds are still a viable options for people just starting to save or people with money management issues?

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