Build Liquid Savings

Liquid savings is important for every family to have. This is money you have stashed away, but can still access in case you need it. There are a number of ways for you to build liquid savings for your family. And you'll see a better result when you understand the system.

Learn how interest rates affect you. The Federal Reserve sets interest rates nationwide. Sometimes they go up, sometimes they fall and sometimes they stay the same. But no matter what happens there, your liquid savings account will be impacted. High rates mean you'll see more of a return on your deposits. But when rates fall, you can expect cheaper rates when you borrow money.

Calculate how much interest you can rake in. Different savings plans offer different types of interest and that can make a big difference in how much money you accrue. When you understand how much money you can make simply off of interest, you'll make the best decision for your budget.

Open a savings account. These are available at your local bank or credit union, and they're available to everyone. Savings accounts do earn interest and sometimes a minimum balance is required.

Move some of your money from a savings account to a money market account. Like savings accounts, these are available through your local bank or credit union, and money market accounts allow check writing and money transfer privileges. These usually require a higher minimum balance than a savings account, but they also earn about twice as much in interest.