You're Rich and Single — Is Your Money Working Hard Enough?
If you're financially comfortable and living on your own, don't let excess cash sit idle. Here's how to make your money work harder for you.
When you’re financially comfortable and living solo, it’s easy to let extra cash sit idle in your checking account. But even if you don’t have a partner or dependents to budget for, your money should still be working for you, not the other way around.
Whether you’ve recently received a windfall, hit a career milestone or just have strong income with relatively low expenses, it pays to be intentional with your savings strategy.
Here are four smart ways to make the most of your cash and grow your income without sacrificing your lifestyle.
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1. Automate savings
The classic advice to "pay yourself first" still holds, and automation makes it effortless. By setting up recurring transfers, you can consistently grow your savings without having to think about it.
Start by scheduling automatic transfers from your checking account to your high-yield savings account on a regular basis — whether that’s weekly, monthly or timed with your paycheck. This ensures that saving becomes a habit, not an afterthought.
You can also automate retirement contributions through your employer’s 401(k) or similar plan. Most companies allow you to designate a percentage of each paycheck to go directly into your retirement account, helping you build long-term wealth with minimal effort. Some employers offer matching contributions, giving your savings an added boost.
2. Max out your retirement savings
Automating your retirement contributions is a great start, but to truly make the most of your income, be sure you’re contributing enough to unlock your full employer match.
Many employers match contributions up to a certain percentage of your salary, and not taking full advantage means leaving free money on the table.
Once you’ve hit your employer’s match, aim to max out your 401(k) contributions. For 2025, the limit is $23,500. Contributing the maximum helps reduce your taxable income now and strengthens your long-term financial security.
Beyond your 401(k), consider opening both a traditional IRA and a Roth IRA to diversify your tax advantages.
- A traditional IRA allows for pre-tax contributions, meaning you’ll pay taxes when you withdraw the money in retirement.
- A Roth IRA works in reverse — you contribute after-tax dollars now, but your withdrawals in retirement are tax-free.
For 2025, you can contribute up to $7,000 across all IRAs if you're under 50, or $8,000 if you're 50 or older.
The ultimate goal: aim to save and invest at least 15% of your income for retirement across all accounts.
Use the tool below, powered by Bankrate, to connect with a financial professional who can help you develop a personalized plan to grow your wealth and reach your financial goals.
3. Tap high-yield savings accounts
If you’ve checked your savings account lately and noticed the interest is barely ticking upward, you’re not alone — and you’re not stuck. One of the easiest ways to boost your passive income is by moving your emergency fund to a high-yield savings account.
While rates can change over time, high-yield savings accounts often offer more competitive returns than traditional savings accounts.
For example, a $10,000 balance in a high-yield savings account earning 4.20% APY would generate about $420 in interest over a year. That same balance in a traditional savings account earning the national average rate of 0.38% APY would earn just $38 over the same period. That's a difference of roughly $382 in annual interest on the same amount of money.
If you're earning less than the top rates available today, compare Kiplinger's picks for the best high-yield savings accounts and see how much more your cash could be earning.
Or use the tool below, powered by Bankrate, to see some of today’s top rates:
4. Diversify your portfolio
To build lasting wealth, it’s essential to diversify your investments. Stocks are a strong foundation, particularly broad-based index funds that track the S&P 500, which have historically returned over 10% annually. Over time, these investments can significantly grow your net worth.
But don’t stop there. Relying solely on the stock market exposes you to volatility, especially during economic downturns. To protect and grow your wealth in all market conditions, consider diversifying across multiple asset classes.
Affluent investors often allocate a portion of their portfolios to real estate, bonds, private equity, hedge funds or private credit. These alternative assets can help smooth out returns and provide income or appreciation even when stock performance is lackluster.
The key is balance — building a portfolio that aligns with your goals, risk tolerance and timeline while ensuring no single investment type holds too much weight.
The more you save now, the more freedom you’ll have later — whether that means a comfortable retirement, a dream home or spontaneous big-ticket purchases.
By putting these strategies to work, you can make the most of your income, grow your savings more efficiently and build a future that supports the lifestyle you truly want.
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