When families in Arizona and across the country ask how to grow their savings without risking their hard‑earned money, certified financial expert Doug Boneparth offers clear guidance. In CNN’s recent Savings Challenge, Boneparth emphasized that savers don’t have to choose between the meager yields of traditional savings accounts and the roller‑coaster of the stock market.

Match Your Time Horizon to the Right Tool

Boneparth explained that the longer you can leave money untouched, the more you can comfortably absorb market fluctuations and the higher the potential return. He urged readers to align their investment horizon with the appropriate strategy, ensuring they avoid disappointment when funds are needed sooner than expected.

Build an Emergency Fund First

Before tackling higher‑yield options, Boneparth recommends setting aside at least three months of living expenses in a high‑yield savings account. This emergency cushion protects families from falling back into credit‑card debt if a job loss or unexpected expense occurs.

Consider Debt‑Management Plans

If debt feels unmanageable, Boneparth points to the National Foundation for Credit Counseling (NFCC) as a resource. The NFCC can negotiate lower payments and interest rates with creditors through a Debt Management Plan (DMP). Participants make a single monthly payment to the NFCC, which then distributes funds to creditors. Importantly, a portion of that payment can be automatically routed into an online savings account, helping borrowers build savings while they pay down debt.

Bruce McClary, senior vice president at the NFCC, noted, “Instead of finishing a debt‑payoff plan with zero cash on hand, clients walk away completely debt‑free and with a dedicated emergency fund to prevent them from falling back into credit‑card debt.” He added that typical DMPs involve a start‑up fee of about $35 and a similar monthly maintenance fee.

High‑Yield Savings Accounts Offer Better Returns

High‑yield savings accounts, often provided by online banks, currently offer rates above 4%, a significant improvement over the sub‑1% rates of many brick‑and‑mortar institutions. These accounts are FDIC‑insured, keeping principal safe while delivering a modest, steady return.

Stay Disciplined and Avoid New Debt

Boneparth cautioned that saving aggressively while still carrying high‑interest debt can be counterproductive. He advises borrowers to focus on eliminating high‑cost obligations before allocating large sums to investment vehicles. Once debt is under control, the combination of a solid emergency fund and a high‑yield account can set the stage for future financial goals, such as a home purchase or college tuition.

Take Action Today

Readers with personal questions can reach out to the Savings Challenge team at [email protected] or sign up for the weekly newsletter for ongoing tips. By following these steps—building an emergency fund, exploring NFCC debt‑management options, and selecting a high‑yield savings account—families can improve their returns while preserving the safety of their principal.

Original reporting: KTVZ (Central Oregon) — read the source article.