New! Eligible SoFi members can invest in upcoming IPOs before they’re traded on the public market—only in the SoFi app.* Learn more

5 Ways to Make Your Money Work For You

July 02, 2020 · 4 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

5 Ways to Make Your Money Work For You

Have you heard a “Make money while you sleep!” claim recently? They feel like they’re everywhere. But let’s be real — unless you hit the powerball, growing wealth doesn’t usually happen overnight. Making your money work for you is more like a marathon that requires planning, diligence, and financial smarts.

Thanks to the advent of online banking, 21st-century financial technology, and the democratizing notion that investing should be accessible to everyone, you no longer need to have money in order to make it. And that’s good news, because you work hard for your money. Check out these five ways your money can work just as hard for you.

Ways Your Money Can Work For You

1. Ditching the Fees

Bank Fees

How do banks charge you? Let us count the fees. The list can include account maintenance fees, returned deposits, foreign transactions, falling below the account minimum, receiving paper statements, replacing a lost or stolen card, using a non-network ATM, overdrawing, making too many savings withdrawals, writing too many checks, closing an account, not using an account enough, speaking with a human, paying late, or even paying off a loan too early.

In fact, the FDIC released figures showing that in 2017, banks made $11.45 billion in overdraft fees alone. So it may not be surprising that they make up to 40% of their income from fees. That’s your money. Going into their pockets. Just for doing business with them. Ouch.

Investment Fees

Paying a traditional financial advisor a percentage of your account balance to manage, monitor, and optimize your portfolio could be worth the expense, but it might not be an effective use of your money.

Financial advising is still a confidence-booster for the majority of investors who use it. But when advisors charge a typical fee of 1% a year based on your portfolio balance, your total return can be significantly impacted.

Fortunately, a growing number of competitors are offering the same types of advising service with little or no fees — and no humans. Robo-advisors are becoming more popular because they use algorithms to optimize portfolios, thus eliminating the overhead of live employees.

Still other products like SoFi Invest® offer the best of both worlds, with human advisors willing to help at the cost of an automated system.

ATM Fees

At an average of $3 a pop , ATM fees can add up quickly. And “I just need to stop at the ATM really quick” is a phrase that’s likely uttered often, since 60% of Americans ages 25-34 and 51% ages 35-49 withdraw $40 8-10 times a month.

One way to avoid paying ATM fees is to always make sure that you’re using one of your bank’s designated ATMs. However, if you’re on the road or your bank only has a few networked ATMs, that can be a challenge.

Just like bank fees, however, more and more financial institutions are offering fee-free ATM usage as part of their perks. Especially if you use an online checking account, this can add up to hundreds of dollars in savings.

2. Making Debt Payoff a Priority

When you begin to repay a loan, it’s possible that your early payments could almost be entirely interest vs. the principal balance. And credit card payments can be even more complicated, with a minimum monthly payment that changes each month based on the balance and any accrued late fees or interest.

Several debt-payment philosophies can help you get out of paying and into saving, including the snowball, avalanche, and fireball methods.

Consolidating various debts into one low-interest personal loan can be another way to get out from under those high-interest payments and get on a fixed payment schedule.

3. Getting Rewarded for Saving and Spending

If banks can make you pay just to do business with them, why can’t you do the same? One way to turn the tables and make your money work for you is to open a high-yield savings account.

Then, instead of languishing in a traditional savings account that only offers 0.01% interest , you could earn as much as 2% APY or more. That’s an increase of around 20,000%.

You also can find several ways to get rewarded for spending, such as retailer loyalty programs, coupons, or rebate apps. Cashback or reward credit cards can also be an effective way to save at your favorite store, provided you pay your statement balance in full every time it comes due.

And while not everyone has the time to clip coupons and search through circulars before heading to the store, it can be a good way to get more from your money as often as time allows.

4. Eliminating Waste

Have you ever thought you were fine on your checking-account balance, only to have it overdraw? Where the heck did all that money go? Tracking where your money goes could help you identify and reduce (or even eliminate) areas where you’re overspending — you could think of it like keeping a food journal when you’re trying to eat healthier.

But how to make that an easy task? Especially for millennials, budgeting and saving are a top priority, but life also gets busy. A growing number of fintech companies are responding to that need with budgeting apps that categorize spending, automate bill payments and savings contributions, and even track goals.

Like SoFi Relay®, a new money-tracking app, lets you see all of your accounts in one central location so that you can easily see where the money is coming, where it’s going, and where you can shift things around.

5. Investing in Your Future

It’s true that you can’t take your money with you when you go. But with an average life expectancy at 78.6 years , it’s also likely to be a long time before you get there.

And while AARP data shows that there will be a 50% increase in the number of workers ages 65 to 74 by 2024, the average American still has dreams of retiring at age 62 .

Creating a long-term investment plan is one way to work on having enough set aside to one day ditch the working world for good. Even if it’s just a few bucks here or there, a smart portfolio combined with the magic of compounding returns could help you get there.

Investing has the potential for a higher return on investment vs. a savings account, but the reward isn’t guaranteed. Unlike cash-based interest accounts, your portfolio balance is likely to fluctuate with the market.

Because of the risk associated with putting money into the market, some people may be hesitant to jump in, especially if they don’t fully understand how investing works. But if you start early and save often, it’s possible to head into retirement without regret.

Making Your Money Work for You

Everyone’s financial situation is different, and what works for one person may not work for another. But with some trial and error, you can figure out what works for you. If you’re ready to start saving and investing to meet your goals, consider SoFi.

Open a SoFi Money® cash management account and start putting your money to work.

External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term “SoFi Invest” refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see

SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC .
Neither SoFi nor its affiliates is a bank. SoFi Money Debit Card issued by The Bancorp Bank. SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store
SoFi Android App, Get it on Google Play

TLS 1.2 Encrypted
Equal Housing Lender