How to evaluate money saving options for your financial planning goals

Choosing the best ways to save money for the future can feel overwhelming, especially with questions about money and the wide range of financial tools available today. Savings accounts, investment vehicles, and other long-term financial products all offer different advantages, limitations, and levels of risk. To determine which money saving option best supports your financial planning goals, it’s helpful to explore how each option works and what role it can play in your overall financial strategy.

Why saving money for the future matters

Building savings for the future is more than just setting aside money, it’s also about positioning your finances to support you through life’s milestones and unexpected challenges. Whether it’s by contributing to a traditional savings account, building an emergency fund, putting money into a retirement plan, or using multiple tools at once, each dollar saved can play an important role in building a stronger financial foundation.

Along with common savings options, permanent life insurance can also serve as a valuable savings tool because of its ability to build cash value over time. Certain policies offer living benefits which give you access to a portion of the policy's death benefit while you’re still alive and can be used for a variety of needs. No matter which money saving options you choose, the goal is to find ways to help your money grow, support your future needs, and contribute to lasting financial stability.

Key money management considerations to determine what your money is doing for you

As you begin thinking about financial planning goals and which money saving tools make the most sense, there are several money management considerations that can help guide your decisions. Whether the goal is building an emergency fund, protecting loved ones, or growing wealth for the future, it’s important to think about how easily the money can be accessed, how much it could grow, and the level of risk involved. By keeping these factors in mind, it’s easier to make informed choices that support both short-term needs and long-term objectives—especially if you have lingering questions about money and how to use it wisely.

How accessible is your money?

When planning how to save money for the future, it helps to consider how easily those funds can be accessed when needed. If the timeframe is within the next 3–12 months, traditional options like savings accounts or certificates of deposit (CDs) can provide liquidity while minimizing risk. Make sure to review any limits, penalties, or waiting periods that could affect how quickly money can be accessed. During an emergency, for example, having funds that are easy to access can help reduce stress and provide financial flexibility during a challenging time. Permanent life insurance can also help you prepare for the unexpected by allowing access to a portion of the death benefit if diagnosed with a qualifying illness, subject to the policy’s terms and conditions.

How do you keep your money safe?

Keeping money safe is a fundamental part of smart money management and meeting personal financial planning goals. Be sure to work with reputable financial institutions, and if funds are held at a bank, check that the institution is insured for better protection. Remember, some money saving options offer higher potential returns but also carry more risk, while others prioritize stability over growth. Finding your preferred balance of risk and reward can help you choose the options that align with your personal financial goals.

Is your money ‘working hard’ enough?

While flexibility and accessibility are key, it’s also worth considering how much growth potential a savings account truly offers. According to the FDIC, the average interest rate for a savings account is just 0.40%. Accounts like high-yield savings, CDs, and money market accounts often offer better returns than traditional savings accounts, especially when funds can be left untouched for a period of time. For those looking for additional growth potential, indexed universal life (IUL) insurance can be another option. IUL policies combine life insurance death benefit protection with the ability to build cash value that grows based on a market index, offering both flexibility and the potential for higher returns over time. Using a mix of savings options can help your money grow while still fitting your goals, comfort with risk, and how soon you may need access those funds.

What fees are you paying?

Tucking funds away might seem like an easy way to protect their value, but some accounts come with fees that can chip away at savings, such as charges for falling below a minimum balance or annual maintenance fees. Be sure to review these costs when evaluating where to place your money. Flexibility also matters, especially if funds may need to be accessed quickly. Reducing avoidable fees is one of the simplest ways to save money and make money, because every dollar you keep can continue compounding toward your goals.

Where to save money with growth in mind

When the goal is to grow your savings over time, it helps to explore options that offer higher potential returns while still aligning with your financial goals. High-yield savings accounts and CDs provide more growth than traditional savings accounts, especially when funds can remain untouched for a set period. For long-term planning, options like individual retirement accounts (IRAs), 401(k) plans, and certain annuities allow your money to grow tax-advantaged over time, making them powerful tools for creating income for retirement. Some types of life insurance, such as permanent or IUL policies, can also serve as a savings vehicle by building cash value that grows over time, offering both protection and the potential for long-term growth. By combining different strategies, it’s possible to safeguard your money while helping it work toward your financial planning goals.

How to make your money grow

By using careful planning and healthy money management practices, it’s possible to steadily grow your savings. Also take time to regularly review accounts, track progress, and use a monthly budget to identify savings opportunities and put more money toward financial goals. It can also help to periodically reassess your strategy as your income, expenses, or long-term plans shift, ensuring your savings approach continues to meet your needs. Consider working with a financial professional to help build a diversified plan that grows and protects your savings. They can also discuss how permanent life insurance can offer protection and long-term growth, bringing balance to a well-rounded financial strategy.

How to make your money grow

By using careful planning and healthy money management practices, it’s possible to steadily grow your savings. Also take time to regularly review accounts, track progress, and use a monthly budget to identify savings opportunities and put more money toward financial goals. It can also help to periodically reassess your strategy as your income, expenses, or long-term plans shift, ensuring your savings approach continues to meet your needs. Consider working with a financial professional to help build a diversified plan that grows and protects your savings. They can also discuss how permanent life insurance can offer protection and long-term growth, bringing balance to a well-rounded financial strategy.

What to do with extra money

Once you’ve built a solid emergency fund and saved more than you need for short-term protection, those extra dollars can be put to work for your future rather than sitting idle. While traditional savings accounts will simply pass their balance plus any interest to beneficiaries, cash value life insurance can leverage those same dollars into a larger, generally tax-free death benefit. Certain policies also offer living benefits and cash value that you can access while you’re alive to add flexibility that extends beyond basic savings. Reviewing how your money is being used, whether it’s in a bank account, an investment, or a policy, can help ensure your resources support both your long-term goals and the legacy you want to leave behind.

Questions about long-term money management solutions? Ask Midland National

Whether you're looking for growth opportunities by investing cash or wish to build your long-term savings more efficiently, it's essential to explore financial solutions that align with your goals. While traditional savings methods like bank accounts and bonds offer stability, they may not always deliver the growth or flexibility you're looking for.

If you’re exploring long-term money management strategies and want tools that can help your savings grow, Midland National offers a range of annuity and life insurance solutions designed to support different financial goals. Whether you’re looking for ways to build reliable future income, protect against life’s uncertainties, or add growth potential to your overall strategy, our products can play a meaningful role in a well-rounded financial plan. Contact a Midland National agent to learn how we can support your financial journey today!

Indexed Universal Life Insurance products are not investments in the “market” or in the applicable index. They are subject to all policy fees and charges normally associated with universal life insurance.

Policy loans from life insurance policies generally are not subject to income tax, provided the contract is not a Modified Endowment Contract (MEC), as defined by Section 7702A of the Internal Revenue Code. A policy loan or withdrawal from a life insurance policy that is a MEC is taxable upon receipt to the extent cash value of the contract exceeds premium paid. Distributions from MECs are subject to federal income tax to the extent of the gain in the policy and taxable distributions are subject to a 10% additional tax prior to age 59½, with certain exceptions. Policy loans and withdrawals will reduce cash value and death benefit. Policy loans are subject to interest charges. Consult with and rely on your tax advisor or attorney on your specific situation. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to withdrawal charges, processing fees, or surrender charges, and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

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