4 Can't-Lose Ways to Use Your Money Now

If you want a surefire way to win financially, these four techniques are the ticket.

Economic conditions have been a bit unusual in recent years, to say the least. There was a global pandemic that led to strict lockdowns, and now inflation is near a 40-year high and there are concerns about a recession.

Amidst these conditions, you naturally may be a bit unsure of what to do with your money. Fortunately, there are four can't-lose options, any one of which would be a great thing to do with your spare cash. Here's what they are.

1. Pay down debt

Interest rates on variable-rate debt have been going up as the Federal Reserve has raised rates. The central bank has been increasing the rate at which banks borrow overnight from each other in an effort to fight inflation. When the Fed raises rates, credit becomes more expensive -- and further rate increases are projected.

This means if you have any variable-rate loans, such as credit cards, your financing charges have increased. That makes it a better time than ever to try to repay high-interest consumer debt.

Of course, paying off credit card debt or other costly loans is never a bad investment, since your return on investment (ROI) is equal to the interest saved. With some credit cards having interest rates of 27% or higher, that's a really great ROI.

2. Bulk up your emergency savings

Saving for emergencies is also never a bad investment. It provides you with peace of mind to have money set aside for the future. It can also prevent financial disaster if you get sick, your income is cut, or a big surprise expense arises.

Since interest rates are up right now, high-yield savings accounts are rewarding consumers more for setting aside cash. You don't want to save more than you need (about three to six months of living expenses for most people) since savings account yields still aren't that impressive. But at least you will be getting a slightly higher return on your emergency cash.

3. Invest in equities

Investing in stocks is another can't-lose option if done correctly.

This may seem odd to say, because it is very possible that putting your money into the stock market could lead to losses if you don't do it right. But, there are safer ways to invest that reduce your risk and maximize your returns -- and it's worth learning about and embracing them, because investing in equities is one of the surest paths to building wealth.

Building a diversified portfolio and exposing yourself to an appropriate level of risk is the way to go in the long run. If you don't know how to do this by buying individual companies, look for a brokerage firm that offers lots of commission-free ETFs that give you exposure to the market as a whole.

4. Invest in yourself

Finally, consider investing in yourself. Finance guru Warren Buffett says this is the best investment you can make, and he's absolutely right. If you develop your skills, you can increase your earning potential and you will have these new credentials for life.

By making any of these four investments with your money, you should be setting yourself up for success -- no matter what the future of the economy holds.