Careful management of your savings will keep you from having to break the piggybank.

Once you’ve gotten past the initial financial trials of a new business, or maybe you had a winner from the start, what are you going to do with all the money you’ve made? For many people they’ll invest it back in their business. But how do you keep some of the money safe for personal use, for larger purchases like houses and cars, or retirement? If you’re managing your own investing, where is the best place to put it, CDs, IRAs or what?

The stock market is not as enticing as it used to be with all its massive ups and downs. Some people say real estate, especially with all the foreclosed properties available for pennies on the dollar. Even bonds are not a sure thing anymore.

I have to laugh every time I get an offer from some company with their “high yield” savings accounts at 1.5%. I worked in the banking industry when people were getting 17%, so why would anyone want to put their money where they’re only getting 1%. Before you make a decision you’ll need to look at CD rates, what the restrictions are on IRAs, etc. You’ll need to weigh how much money you can put in a more risky investment and what percentage you want to keep secure. Being informed about the safety and yield you’ll get from any investment is something not to be ignored.

If you can understand all the financial jargon and have the time to study, then you’ll be able to come up with a savings and investment plan that works well for you. However, most people don’t even have enough saved to last 2 weeks! Now that’s scary. So, whether you play it safe, or choose to risk some, at least have a plan for saving some money for a “rainy day” or another economic downturn. If you don’t you’re leaving you savings up to the ostriches and we know they all just stick their head in the sand!