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  1. Investing

Two Investing Tools Everyone Needs to Build Wealth

By:
Mike Ayers
6 min read

Investing shouldn't feel like a second job — but for a lot of us, it does.

Thankfully, there are simple ways to make your money a lot more manageable. Last year, we reported that even something as small as having conversations about your finances can reduce anxiety. Along with talking things out, two straightforward tools can form the backbone of a solid investment strategy.

Here's what they are and how to put them to work, regardless of whether you're just starting out or trying to get more disciplined with money you've already saved. They're easy, promise.

1. A high-yield savings account and ditch low rates

We’ve been saying this for years — get a a high-yield savings account. While traditional savings accounts are still paying around .39% APY, or annual percentage yield, a high-yield savings account will often pay up to 10 times that Right now, CIT Bank is offering up to 3.75% APY, and if you deposit $5,000 when you open an account, you could qualify for a bonus .35% APY on top of that for the first six months.*

Think of it this way: If you parked $10,000 in a high-yield savings account at 3.75%, you'd earn roughly $375 in a year — without lifting a finger. That's money your regular bank is leaving on the table.

→ Learn about a CIT high-yield savings account here.

Sponsored by CIT Bank

2. A diversified investment account to build long-term wealth

Once your savings foundation is set, the next step is putting your money to work in the market. But here's where most people stall out: They overthink it, fear volatility or don't know where to start.

Robinhood is one of the most accessible investing platforms, especially if you want to invest consistently on terms you set. Robinhood gives you access to any U.S. exchange-listed stock or ETF that you’d want, and you can trade 24 hours a day, 7 days a week. Oh, and trading stocks, ETFs and their options are all commission free. Fractional share options and IPO access are also available.

The real power here is consistency. Research consistently shows that time in the market beats timing the market. By automating your investments, you take emotion out of the equation — and that's exactly what the most successful investors have preached for decades.

→ Start investing with Robinhood.

Sponsored by Robinhood

The bottom line: Simplicity is the strategy

The biggest myth in personal finance is that wealth gains have to be complicated. They don’t.

A high-yield savings account protects your present. An investment account builds your future. Together, they can create a system that runs in the background while you focus on living your life.

You don't need to watch CNBC all day or obsess over stock picks. You just need the right tools — and the discipline to let them do their job.

Start with these two tools today, and let time do the heavy lifting.

*Rates are subject to change. Terms and conditions apply. See CIT site for details.

The information provided on this page is for educational purposes only and is not intended as financial or investment advice. All investments carry some degree of risk.

All investments involve risk and loss of principal is possible. Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services. All are separate but affiliated entities.

Commission-free trading of stocks, ETFs and equity options refers to $0 commissions for Robinhood Financial self-directed brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Index options are subject to a per contract fee. Keep in mind, other fees such as trading (regulatory/exchange) fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial’s Fee Schedule to learn more regarding brokerage transactions.

There are additional, unique risks with trading outside of regular market hours you should be aware of before making an investment decision, including the risk of lower liquidity, increased volatility, greater spreads, and pricing uncertainty. Please review the Extended Hours Trading Disclosure for more information concerning these risks. The Robinhood 24 Hour Market is from Sunday 8PM ET - Friday 8PM ET.

Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.

IPOs can be risky and speculative investments, and may not be appropriate for every investor.

Diversification does not ensure a profit or guarantee against loss.

For illustrative purposes only. Not a recommendation of a security or investment strategy. The information contained in this commentary does not purport to be a complete description of the securities, markets, or developments referred to in this material. Any opinions are those of the author and not necessarily those of Robinhood.