If you love to indulge in a cold beer every now and then, you may find yourself with a little extra cash from time to time that you like to refer to as your “beer money.” Instead of letting that money slip away on a night out at the bar, why not put it to good use by boosting your savings? Here are some smart ways to use your beer money to help grow your nest egg.
Invest in a high yield savings account: One of the easiest ways to grow your savings is to park your beer money in a high yield savings account. These accounts typically offer much higher interest rates than traditional savings accounts, allowing your money to grow more quickly over time. Some accounts even offer sign-up bonuses, so be sure to shop around for the best deal.
Automate your savings: Take the hassle out of saving by setting up automatic transfers from your checking account to your savings account. Whenever you have a little extra beer money, you can designate a portion of it to be automatically transferred to your savings account. This way, you won’t even miss the money, and you’ll be padding your savings without even thinking about it.
Contribute to a retirement account: If you have a 401(k) through your employer, consider using your beer money to increase your contributions. If you don’t have access to a 401(k), look into opening an IRA and contribute your extra cash to help secure your retirement future.
Start a side hustle: Instead of spending your beer money on, well, beer, why not put it towards starting a small side hustle? Use your extra cash to invest in supplies or equipment for a hobby or skill you have, and turn it into a small business. Whether it’s making crafts, offering services, or selling handmade goods, you can use your beer money to generate even more income for your savings.
Pay off debt: If you have outstanding debt, using your beer money to make extra payments can help you save on interest and pay off your debt more quickly. Whether it’s credit card debt, student loans, or a car loan, putting your beer money towards paying down your balances can help improve your financial situation in the long run.
There are many smart ways to use your beer money to boost your savings. Whether it’s through investing, automating your savings, contributing to retirement, starting a side hustle, or paying off debt, making the most of your extra cash can help set you up for a more secure financial future. So the next time you’re tempted to spend your beer money on a night out, consider these smart alternatives to help grow your savings.
