Right now may be a challenging time for investors, but that doesn't mean we should just sit back on our heels and feel helpless. David and Tom Gardner recently released their new book, The Motley Fool's What to Do With Your Money Now (you can read an excerpt on MSNBC.com). Here are five things you can do with your money right now to provide for a better future for you and your family, backed up with the help and resources of The Motley Fool to get it done. And if doing it on your own seems like a daunting proposition, take us up on our 30-day free trial offer to our TMF Money Advisor service, where one phone call can get you all the personal attention you need from an unbiased financial advisor.
1. Refinance Everything You Can
With interest rates still at historic lows, it makes sense to get the best interest rates you can on everything from your mortgage to your credit cards.
Fool Home Center
The Motley Fool Home Center can help with all your refinancing needs.
Refinancing Can Mean Big Savings
How much can you save by refinancing? Will you have enough money left over to tour with Aerosmith this summer?
Should You Refinance?
Don't get blinded by dollar signs in your eyes until you consider all those pesky fees and make sure refinancing is worth your while in the long run.
2. Live Below Your Means
Living below your means doesn't have to mean completely sacrificing today for tomorrow. There is plenty you can do to cut costs and save more for the future while still living well today. It just takes a little planning.
Tips for Living Below Your Means
Whether you're spending every cent of every paycheck or just need to scrounge up a few more dollars a month to put in your IRA, chances are you could use a few tips. Fool Community members on our Living Below Your Means discussion board have been helping each other out for years. Join in -- take some advice and give a little back.
3. Build Your Emergency Fund
In the short-term, the stock market can be a very volatile place. That's why every Fool should have a rainy-day fund. Just like bad things sometimes happen to good companies, you could find yourself in need of cash at the worst possible moment -- your roof blows off, after 40 years you decide you really need braces now, Ozzy shows up for the party Junior throws while you're away for the weekend. Make sure you've got the cold, hard, liquid cash to get through those bumps in the night.
Fool Short-Term Savings Center
Here's where you can find everything you need -- including some special deals on CDs and money market accounts for Fools.
Why Short-Term Savings?
Just in case our threat about Junior's parties isn't enough.
How Much Short-Term Savings Do You Need?
Once you realize you need it, the next question is how much should you stash away?
Where Do You Put It?
That's right, we're not suggesting under your mattress. You can still earn interest through safe vehicles. Don't sell yourself short.
4. Use an Index Fund
Fools have been saying it since the beginning of time: For many people, the best place for their long-term (more than five years) savings is in a stock market index fund that models the S&P 500 or the total market. Three-quarters of managed mutual funds underperform the market's average return, year in and year out. So, if you beat most of the pros out there just by putting your money in a low-cost, passive index fund, why would you do anything else?
60 Seconds to Index Investing
It really is something you can do in 60 seconds.
All You Need to Know About the S&P 500 Index Fund
But if you want the unabridged version, here it is.
Motley Fool Index Center
More than you'd ever want to know about all kinds of indexes.
Index Funds Discussion Board
Interact: Get your questions answered and share your own knowledge.
5. Buy What You Know
Why would you do anything besides invest in an index fund? Because you want to beat the market and get greater returns. Sure, stock-picking has been a lot more difficult since the bubble burst. But if you have the inclination and the time to learn more, we still think you can do it -- even in a down market. The key, though, is not to stray too far beyond your expertise. This is not the time to be buying those companies that make wires and switches that you just can't comprehend. Buy what you know. Heck, buy what everybody knows.
Buy What You Use and Love
Buy what you can understand. Take a look at who you are -- your hobbies, your interests, your profession.
Home Field Advantage
Have you owned a company you probably shouldn't have?
Peter Lynch Investing Discussion Board
Interact: Get your questions answered and share your own knowledge on the discussion board devoted to one of the great proponents of buying what you know.
Discount Broker Center
Compare brokers and open an account with one of our partners right here.
For more timely and timeless suggestions from David and Tom, check out What to Do With Your Money Now, and come on back here for all your money needs. Below are more resources available at The Motley Fool. Enjoy, and best of luck in all your financial and life decisions. Fool on!
More Resources
- Free Stuff for Fools -- Hey, we wouldn't be Fools if we weren't always in search of a good deal on something.
- Online Seminars -- From reading financial statements to choosing stocks to how to get along with your spouse on money issues, you can learn it all here.
- Get Out of Debt -- Pay it off before you do any investing.
- Personal Finance -- Save for college, buy a car, insurance, home, and much more.
- Fool's School -- Get 13 steps to investing Foolishly and a whole lot more.
- Retirement -- Plan for it and be ready.
- Taxes -- Uggh, we all have to pay them. Pay as little as you can -- legally!
- Motley Fool Select -- In-depth research and stock ideas.
- Motley Fool Stock Advisor -- The only stock newsletter penned by David and Tom Gardner.
- TMF Money Advisor -- For when you want to talk to an unbiased financial advisor.
- Hidden Gems Inside the Fool -- A complete tour of Fooldom -- yes, we couldn't include everything here!
The Motley Fool is investors writing for investors, and we're proud of our disclosure policy.
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