Ranked: The 3 Best Places to Put Your Money in 2025

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[[{“value”:”Image source: Getty Images
Spoiler alert: I’m not about to give you three red-hot stock tips.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But if I did, you’d be wise to ignore them. There are safer, more practical ways for everyday people to set themselves up for financial success.Here are three of the best ways to put your money to work now.1. Credit card debt payoffCarrying a credit card balance is like being on a treadmill. As long as you have credit card debt, you’ll never get ahead financially. The interest you pay will eat up your savings and your investment returns.The average credit card interest rate is 21%, according to the Federal Reserve. That’s double the average annual return of the stock market.If you have credit card debt, put your other financial goals on hold until it’s completely paid off. Think of it as a guaranteed double-digit return on your investment.A balance transfer card is one of the best ways to pay off credit card debt fast. You’ll likely pay a small fee to move your balance to a new card, but then you’ll pay 0% interest on that debt for an introductory period of 12 months or more. Without new interest charges piling up, you’ll have more breathing room to pay what you owe before the 0% intro period ends.Want to pay off credit card debt fast and save hundreds or thousands of dollars in interest? Check out our list of the best credit cards with 0% intro APRs now to see if you qualify.2. A high-yield savings accountOnce you’re free of credit card debt, priority No. 2 is building up a healthy emergency fund in a savings account — and not just any savings account.The average savings account pays an APY of 0.41%, according to the FDIC. But these days, there are high-yield savings accounts that pay 3.75% or more — that’s over nine times the average.If you don’t yet have an emergency fund, then open a high-yield savings account and set up automatic deposits. Ideally, you save up at least three months’ worth of expenses — that’s everything you spend in a month times three. That way, you can get by for a while if you lose your job, or you can cover a big, unexpected expense without charging it on a credit card.And if you already have an emergency fund, well done! But make sure you’re earning a competitive APY.Say you have $10,000 in a savings account that pays 0.50%. Leave it there, and in five years you will have earned about $250 in interest. If you instead moved it to an account paying an APY of 4.00%, you’d earn about $2,200.Want to earn over nine times the average savings rate? Check out our list of the best high-yield savings accounts to open an account and start saving smarter.3. An S&P 500 index fundOnce you’ve laid a solid financial foundation by paying off credit card debt and setting aside some emergency savings, it’s time to invest for your future.The stock market offers everyday people one of the best ways to build wealth for big, long-term goals like retirement. But picking individual stocks is both difficult and risky. Even professional stock-pickers often earn lower returns than the stock market as a whole.Thankfully, S&P 500 index funds allow you to invest in most of the U.S. stock market all at once. The S&P 500 — a group of 500 of the biggest companies in the United States — has returned 10% per year on average since 1957. So buying an S&P 500 index fund means you instantly have a diversified portfolio of high-performing companies.To purchase S&P 500 index funds, all you need to do is open a brokerage account, add some funds from a bank account, and start shopping. Specifically, look for an exchange-traded fund (ETF) with an expense ratio (basically a service fee) of no more than 0.05%.Chasing high returns is a good way to lose moneyEverybody wants to make money as fast as possible. That’s why there’s no end of get-rich-quick advice out there, like dicey stock and crypto tips.To be clear, there’s nothing wrong with picking individual stocks in order to boost your returns — after you’re on sound financial footing, have some money you can afford to lose, and have done plenty of research on potential investments. Until then, you’re better off keeping things simple.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Spoiler alert: I’m not about to give you three red-hot stock tips.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

But if I did, you’d be wise to ignore them. There are safer, more practical ways for everyday people to set themselves up for financial success.

Here are three of the best ways to put your money to work now.

1. Credit card debt payoff

Carrying a credit card balance is like being on a treadmill. As long as you have credit card debt, you’ll never get ahead financially. The interest you pay will eat up your savings and your investment returns.

The average credit card interest rate is 21%, according to the Federal Reserve. That’s double the average annual return of the stock market.

If you have credit card debt, put your other financial goals on hold until it’s completely paid off. Think of it as a guaranteed double-digit return on your investment.

A balance transfer card is one of the best ways to pay off credit card debt fast. You’ll likely pay a small fee to move your balance to a new card, but then you’ll pay 0% interest on that debt for an introductory period of 12 months or more. Without new interest charges piling up, you’ll have more breathing room to pay what you owe before the 0% intro period ends.

Want to pay off credit card debt fast and save hundreds or thousands of dollars in interest? Check out our list of the best credit cards with 0% intro APRs now to see if you qualify.

2. A high-yield savings account

Once you’re free of credit card debt, priority No. 2 is building up a healthy emergency fund in a savings account — and not just any savings account.

The average savings account pays an APY of 0.41%, according to the FDIC. But these days, there are high-yield savings accounts that pay 3.75% or more — that’s over nine times the average.

If you don’t yet have an emergency fund, then open a high-yield savings account and set up automatic deposits. Ideally, you save up at least three months’ worth of expenses — that’s everything you spend in a month times three. That way, you can get by for a while if you lose your job, or you can cover a big, unexpected expense without charging it on a credit card.

And if you already have an emergency fund, well done! But make sure you’re earning a competitive APY.

Say you have $10,000 in a savings account that pays 0.50%. Leave it there, and in five years you will have earned about $250 in interest. If you instead moved it to an account paying an APY of 4.00%, you’d earn about $2,200.

Want to earn over nine times the average savings rate? Check out our list of the best high-yield savings accounts to open an account and start saving smarter.

3. An S&P 500 index fund

Once you’ve laid a solid financial foundation by paying off credit card debt and setting aside some emergency savings, it’s time to invest for your future.

The stock market offers everyday people one of the best ways to build wealth for big, long-term goals like retirement. But picking individual stocks is both difficult and risky. Even professional stock-pickers often earn lower returns than the stock market as a whole.

Thankfully, S&P 500 index funds allow you to invest in most of the U.S. stock market all at once. The S&P 500 — a group of 500 of the biggest companies in the United States — has returned 10% per year on average since 1957. So buying an S&P 500 index fund means you instantly have a diversified portfolio of high-performing companies.

To purchase S&P 500 index funds, all you need to do is open a brokerage account, add some funds from a bank account, and start shopping. Specifically, look for an exchange-traded fund (ETF) with an expense ratio (basically a service fee) of no more than 0.05%.

Chasing high returns is a good way to lose money

Everybody wants to make money as fast as possible. That’s why there’s no end of get-rich-quick advice out there, like dicey stock and crypto tips.

To be clear, there’s nothing wrong with picking individual stocks in order to boost your returns — after you’re on sound financial footing, have some money you can afford to lose, and have done plenty of research on potential investments. Until then, you’re better off keeping things simple.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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