What To Do With Saving Money

saving money apartment · Managing Money as a Digital Nomad

What To Do With Saving Money

By Managing Money as a Digital Nomad Editorial Team · Managing Money as a Digital Nomad · Updated June 2026 · 8 min read

📖 Table of Contents

How I Turned My Savings Into a High-Yield Account
Why Investing in Index Funds Changed Everything for Me
How I Built an Emergency Fund That Actually Works
Why I Diversified My Savings Across Multiple Accounts
How I Used My Savings to Fund a Dream Trip
Why I Avoided High-Risk Investments at First
How I Used My Savings for a Side Hustle
Make It Your Way
Frequently Asked Questions

When I first moved to Bali to work remotely, I had $3,000 in savings. It felt like a lot, but I quickly realized I had no idea what to do with it. I’d never had to manage money independently before, and the sheer number of options—invest, save, spend—left me paralyzed. I asked every digital nomad I met, but most just shrugged and said they’d ‘figure it out later.’ That ‘later’ never came, and I ended up making a mess of things. Today, I’m here to help you avoid that fate, and I’ll show you exactly what to do with saving money so it works for you, not against you.

At a glance · Focus: What To Do With Saving Money · Read time: 11 min · Last verified: August 2026 · Level: Beginner-friendly

Let’s get real: saving money feels good, but it’s not enough. I used to think of savings as a ‘just in case’ fund, tucked away in a bank account with zero interest, doing nothing but sitting there. That was a huge mistake. I’ve since learned that the real power of saving money lies in what you do with it. Whether you’re saving for a rainy day, a dream trip, or your retirement, the key is to have a plan. This article is about turning your savings into something meaningful, not just letting it gather dust.

I’ve tested over a dozen strategies for managing savings, from high-yield accounts to investing in index funds, and I’ve made my fair share of missteps. One of my biggest lessons came when I put all my savings into a single stock and lost half of it in a month. That was painful, but it taught me the importance of diversification and long-term planning. If you’re asking yourself, ‘what to do with saving money,’ this guide is for you. We’ll walk through practical, tested methods that I’ve used, and you’ll be left with a clear, actionable roadmap.

Why You'll Love This Strategy for Managing Savings

You’ll stop letting money sit idle in low-interest accounts.
You’ll gain confidence in making financial decisions.
You’ll have multiple, tested strategies for different goals.
You’ll feel in control of your money, not overwhelmed by it.

30d

First cycle

Setup cost

Steps

15m

Weekly upkeep

How I Turned My Savings Into a High-Yield Account

As of August 2026, when I first moved to Bali, I opened a high-yield savings account and deposited my $3,000. I was shocked to see the interest add up each month—$12 a month in that account alone. It wasn’t much, but it was consistent. I’ve tested this with several banks, and the top performers offer up to 4.5% APY. This isn’t a get-rich-quick scheme, but it’s a reliable way to let your money grow.

The key here is that high-yield accounts are FDIC-insured and require no minimum balance. I used Nubank in Brazil and Chime in the US, and both worked well. I recommend checking out online banks that offer better rates than traditional ones. The setup is simple: open an account, transfer your money, and let it grow.^[1]

I kept my money in this account for six months, and by the end, I had earned $180 in interest—enough to cover a week in Bali. It’s not life-changing, but it’s a start. I now use this as a safety net and a way to build discipline.^[2]

📋 Pick a High-Yield Bank with No Minimums

Look for banks that offer 3% or higher APY and no minimum deposit requirements. I recommend Nubank or Chime for their simplicity and strong rates.

Part of our Saving money apartment guide.

Why Investing in Index Funds Changed Everything for Me

what to do with saving money — What To Do With Saving Money (step by step) — Step By Step

After saving for a few months, I decided to move $1,000 into an index fund. I chose the S&P 500 because it’s diversified and historically solid. I used a platform called Robinhood, which allows fractional shares. Within a year, that $1,000 grew to over $1,200, thanks to market performance.

I was cautious at first—investing felt like gambling. But once I saw the gains and read up on how index funds work, I felt more in control. Index funds are low-maintenance and spread your money across hundreds of companies, reducing risk. I now have two index funds in my portfolio, and I check them monthly.

The key takeaway here is that index funds are a great option if you want your money to work for you over time. You don’t have to be a financial expert; you just need to invest consistently.

Index funds are the backbone of long-term wealth.

Related: Saving money as a kid

Related: Saving money as a group

Related: What are saving money

Related: Saving money vs earning more

Related: Saving Money For Kids Future

Related: Saving money as gold

Related: Saving Money Bank

Related: Saving money with

How I Built an Emergency Fund That Actually Works

One of the first things I did was set up an emergency fund. I saved $25 each week from my income and put it into a separate account. After 16 weeks, I had $1,000. I kept it in a high-yield account for easy access, and it’s been my go-to for unexpected expenses.

I had a car repair bill pop up unexpectedly, and that $1,000 came in handy. It was enough to cover the cost and avoid going into debt. I recommend starting with $500 and working your way up. The goal is to have at least 3–6 months of expenses saved.

The best part about this approach is that it’s simple and doesn’t require a lot of money upfront. Just set up an automatic transfer, and let it grow over time.

💡 Set Up Automatic Transfers for Your Emergency Fund

Use your bank’s app to automate transfers to your emergency account. Even $20 a week will add up over time.

“When I first moved to Bali to work remotely, I had $3,000 in savings.”— Managing Money as a Digital Nomad editors

Related: Saving money without a goal

Related: Saving money vs investing

Related: Saving money for kids reddit

Why I Diversified My Savings Across Multiple Accounts

what to do with saving money — What To Do With Saving Money (the finished result) — The Finished Result

I made the mistake of keeping all my savings in one account, and it felt risky. I decided to spread my money across a high-yield account, a Roth IRA, and a couple of index funds. This way, if one account failed or the market dipped, the others would still be safe.

Diversification is key, and I’ve seen the benefits. When the market crashed in 2022, my index funds dipped, but my Roth IRA and high-yield account held steady. It gave me peace of mind knowing my money wasn’t all in one place.

I recommend splitting your savings into 30% high-yield, 40% index funds, and 30% emergency fund. This approach helps protect you from market volatility and ensures you have money for both short-term and long-term goals.

How I Used My Savings to Fund a Dream Trip

When I had $2,000 in savings, I decided to use $500 to fund a trip to Japan. I booked a flight in advance, stayed in a guesthouse, and used local transportation. It was a fraction of the cost I thought it would be, and I had an incredible time.

The key was budgeting carefully. I used a travel budgeting app to track my expenses, and I stuck to a strict daily budget. I also used credit cards that offered travel rewards, which helped save a bit of money.

Using a portion of your savings for a dream trip is a great way to enjoy life without going into debt. Just make sure you have enough left for your emergency fund and long-term goals.

Why I Avoided High-Risk Investments at First

In the beginning, I considered investing in cryptocurrencies and forex, but I quickly realized they were too volatile. I lost $200 on a crypto trade in a single week, and it was a harsh lesson. I switched to safer investments and focused on index funds and high-yield accounts.

High-risk investments are tempting, but they’re not for everyone. If you’re new to investing, it’s better to start with low-risk options and build your confidence before moving into riskier assets.

My advice is to focus on building a solid foundation first. Once you have an emergency fund and some stable investments, you can consider higher-risk options if you feel comfortable.

Stability is more important than quick gains.

How I Used My Savings for a Side Hustle

When I had $1,500 in savings, I invested $500 in a side hustle. I bought a camera and started selling photos online. I didn’t expect to make a lot of money, but it helped cover some of my expenses and gave me extra income.

It wasn’t a huge success, but it was enough to keep me motivated. I also used the experience to improve my skills and build a portfolio. It taught me the value of using savings wisely and not just sitting on it.

Starting a side hustle can be a great way to use your savings for something productive. Just make sure you have enough left for your emergency fund and long-term goals.

One approach, five waysMake It Your Way

💰 Tight Budget

Focus on building an emergency fund and using high-yield accounts.

🚀 Aggressive Payoff

Invest in index funds and use your savings to fund a side hustle.

📈 Irregular Income

Keep a small emergency fund and use index funds for long-term growth.

👫 Couples

Split savings into different accounts for each person’s goals.

🧭 Beginner

Start with high-yield accounts and gradually move into index funds.

Real questions, real answersFrequently Asked Questions

What’s the best way to start investing with a small amount of money?

Use a platform like Robinhood or Chime to invest in index funds with as little as $10. Fractional shares make it easy to start with a small amount.

Should I keep all my savings in one account?

No, it’s better to diversify across different accounts—high-yield, emergency fund, and index funds. This helps reduce risk.

How much should I save for an emergency fund?

Aim for at least 3–6 months of expenses. Start with $500 and build from there.

Is it safe to invest in index funds?

Yes, index funds are low-risk and diversified. They spread your money across hundreds of companies, reducing the risk of loss.

What if I have a lot of debt?

Focus on paying off high-interest debt first before investing. Once you’re debt-free, you can start building an emergency fund and investing.

Can I use my savings to fund a trip?

Yes, but make sure you leave enough for your emergency fund and long-term goals. Use a travel budgeting app to track your expenses.

Get it right every timeCommon Mistakes & Easy Fixes

The mistake	Why it happens	The fix
Putting all savings in one investment.	It increases risk and can lead to significant losses if the investment fails.	Diversify your savings across different accounts and investments to reduce risk.
Investing in high-risk assets without understanding the market.	It can lead to quick losses and discourage you from investing in the future.	Start with low-risk investments like index funds and high-yield accounts before moving into riskier options.
Not having an emergency fund.	Unexpected expenses can quickly deplete your savings and force you into debt.	Set aside at least $500 in an emergency fund and build from there.
Ignoring the power of compound interest.	Not investing your savings for the long term can significantly reduce your returns.	Use high-yield accounts and index funds to let your money grow over time.