Ranked: The 3 Best Places to Put Your Money in July 2025

Whether you're trying to pay off debt, save for the future, or start investing, where you put your money makes a big difference. But with so many options out there, it's easy to get overwhelmed.

If you want simple, practical steps that actually work, start with these three moves to build financial stability and long-term wealth.

1. Paying off credit card debt

If you're carrying credit card debt, it should probably become your top financial priority -- if it isn't already.

Right now, the average credit card interest rate is hovering around 22.25%, according to the Federal Reserve. So you might think of it like this: Paying off credit card debt is like locking in a guaranteed double-digit return.

Once you're freed up, you'll have more money in your pocket -- and you'll lose the stress that comes with high-interest debt.

A 0% intro APR balance transfer card can help you speed up your payoff, letting you move your existing balance and avoid interest for several months. That'll give you time to pay down the principal without racking up more interest.

Want to save on interest now? Check out our list of the best 0% intro APR cards available today.

2. Building an emergency fund in a high-yield savings account

Once your credit card debt is gone, you can shift your focus to building up an emergency fund. Most people want to aim for around three to six months' worth of expenses. If you're still using a traditional bank, there's a smarter place to put that money, too: A high-yield savings account (HYSA) from an online bank.

The national average savings APY is just 0.38%, according to the Federal Reserve. But some HYSAs on our list offer as much as 4.20% APY -- more than 10 times the national average.

As an example: $10,000 in savings earning 4.20% APY would earn $420 in a year, compared to just $38 in an average savings account.

3. Invest in an S&P 500 index fund

Once you've paid off debt and built up savings, you're ready to start investing -- but if you're looking to get rich quick, look elsewhere. Instead, I recommend one of the best long-term investments for beginners: a low-cost S&P 500 index fund.

Instead of trying to guess which stocks will win, S&P 500 funds let you invest in 500 of the largest U.S. companies all at once. Historically, the index has returned an average of 10% per year since 1957.

Buying an S&P index fund is easy, too: Just open a brokerage account, link your bank account to fund it, and look for an ETF that tracks the S&P 500 and has a low expense ratio -- ideally 0.05% or less.

While it's perfectly fine to explore individual stocks later, index funds are a simple, proven way to grow your money over time.

Build a better financial future today

You don't need to chase trends or time the market to get ahead financially. The smartest moves are often the simplest: get rid of high-interest debt and save in a high-yield account; then, once you've done that, invest in a broad, low-cost index fund.

These three moves can set you up for steady progress without taking on unnecessary risk. Focus on these, and your money will be working much harder for you by the end of the year.