bitch better have my money

Bitcoin Appreciation Rollercoaster

This year, I learned a ton about blockchain and part of my education included buying bitcoins.I bought bitcoins as a way to learn more about cryptocurrency. The day after I purchased the coins, bitcoin appreciated by 7.78%.

Watching my money grow was a thrill that I’ve never experienced from my vanilla Bank of America checking and savings account. I knew I wanted more.

Below are three ways that I’ve been actively trying to grow my money.

1. High Yield Savings Account

The most hello world way to earn interest on your money is to open a high yield savings account. Many mainstream savings accounts like Bank of America provide a paltry .001 interest rate. This is depressingly low, and but the good news is you don’t have to settle for such a modest APY.

After some weeks of research, I decided to go with Goldman Sachs, right now their APY is a hair over 1%. I was about to go with Barclay’s, but was afraid that since Barclay’s is based in England, it was not insured by FDIC. I discovered later that it was indeed protected by FDIC. I also considered Ally, but after searching around the web I stumbled across quite a few complaints about their customer service.

2. Vanguard Index Fund

I’ve been wanting to invest for over a year now, and I’m so happy finally got around to it! Since I’m still pretty green in the world of investing, I decided to put my money in an S&P 500 index fund. What is an S&P 500 index fund? It is an index fund that tracks the Standard & Poor’s 500 (the 500 stands for the 500 biggest companies in the United States).

The S&P 500 index fund is different from a mutual fund because it is not actively managed by an analyst. This a sweet setup because it relieves the investor from paying high service fees. Also, in the long term index funds tend to outperform stocks that are hand picked by a money manager.

The idea of creating index funds pegged to S&P 500 originated from John Bogle’s undergraduate thesis. His paper showed that 3 out of 4 money managers could not pick a group of stocks that performed better than a cumulative basket of 500 of the largest stocks. John Bogle went on to found Vanguard, an investment company that specializes in index funds.

3. Real Estate

Recently I decided to dip my toe into real estate. I’m still very much a n00b, and I don’t expect to buy property for at least another year. I plan on saving money by moving out of my one bedroom apartment and into a shared house. I live in DC, so even know I make a decent amount salary as a web developer, it would be very hard to save for a down payment if I continuing living on my own.

Just a few months ago, I thought I would never buy a home. Personally home is where my laptop is and never dreamed of things like a redecorating the kitchen, or knocking down a wall or two. The thing that really got me into homeownership was the chance to create an additional income stream.

Conclusion

I never guessed that experimenting with bitcoin would inspire me to become more curious about more conventional financial strategies. These are the ways I’m going about growing my money, did I miss anything? How are you managing your money?