Labor Day is here. For many of us, it’s a day of rest — barbecues, family get-togethers, maybe a quick trip. But if you’re part of TheMoneyWagon family, you already know this day isn’t just about relaxing. It’s also a perfect reminder to make your money work while you chill.
Whether you’re completely new to investing or you’ve been exploring money-making ideas for a while, this guide will help you celebrate Labor Day by building high-yield income — the kind of income that grows steadily and brings you closer to financial freedom.
“Work smarter, not harder — let your money hustle for you.”
1. What “High-Yield Income” Really Means
Think of high-yield income as your money earning a side income for you. Instead of letting it sit in a regular savings account (earning almost nothing), you park it in the right places — places that pay you more, often 5% to 8% or even higher.
As one investor says:
“When you stop trading time for money and start letting money make money — that’s when your wealth journey truly begins.”
Right now, in 2025, some of the smartest high-yield options include:
- Municipal bonds (munis): Offering tax-free yields of 7–8%.
- Preferred stocks or high-yield bonds: Paying around 5–7%, perfect if you want more returns and can take a little risk.
- Dividend-paying stocks or REITs: Great for beginners who want steady returns without too much complexity.
2. Why Labor Day Is the Perfect Starting Point
Labor Day is about honoring hard work. So why not make this the day you take a tiny step toward financial independence?
- You’ve got a long weekend.
- You’ve got time to think and plan.
- And you’ve got no excuses to delay.
As we often say at TheMoneyWagon:
“Small steps, taken today, turn into big wins tomorrow.”
Starting now also gives you a few months before year-end to build momentum and review your progress.
3. Beginner-Friendly High-Yield Options
If you’re new, don’t worry. Here’s a breakdown in plain words.
a) High-Yield Savings Accounts & CDs
This is your first step. Put your emergency money into a high-yield savings account or a short-term CD.
- Easy to open.
- No risk.
- Better returns than your regular bank account.
As one expert puts it:
“Let your emergency fund earn its keep while it waits for you to need it.”
b) Municipal Bonds (Munis)
If you want stable and tax-friendly income, munis are for you. They’re bonds issued by cities or states to fund projects, and they pay you interest regularly.
Start with a muni ETF if you’re not ready to pick individual bonds.
c) Preferred Stocks & High-Yield Bonds
Looking for higher income? These options pay more — 5% to 7% or more — but come with some risk. Perfect if you’re ready to learn as you go.
Our tip:
“Start small, understand the risks, and only invest what you can afford to leave untouched.”
d) Dividend Stocks & REIT
Want your money to grow and pay you at the same time? Dividend stocks and real estate investment trusts (REITs) are your friends.
- Utility stocks like Verizon pay over 6%.
- REITs give you a share of rental income — without owning the building yourself.
e) ETFs for Simplicity
If all of this feels too much, start with ETFs. They’re like baskets of investments that you can buy in one click. Here are some beginner favorites:
- Vanguard Short-Term Bond ETF (BSV)
- Fidelity Total Bond ETF (FBND)
- Vanguard REIT ETF (VNQ)
- Schwab Dividend Equity ETF (SCHD)
As we say often:
“If you can buy groceries online, you can buy an ETF.”
4. What’s Driving High-Yield Income Right Now
The financial world in 2025 is exciting:
- Low credit spreads: Borrowers pay less, but yields are still solid.
- Treasury yields around 4.2%: Safe and steady.
- Inflation-protected bonds (TIPS): Great if you’re worried about prices rising.
- Strong demand for high-yield bonds: Even with fewer new bonds being issued, investors are hungry for yield.
This means there’s still a golden window to grab high-yield opportunities before the markets shift again.
5. Your Labor Day Action Plan
Let’s keep it simple. Here’s a step-by-step plan to start your high-yield journey today.
Step 1: Check Your Basics
Look at your savings and debts.
- Do you have an emergency fund?
- Are you carrying credit card debt?
Remember:
“Paying off high-interest debt is the highest yield you’ll ever get.”
Step 2: Automate Your Savings
Set up an auto-transfer of even $50 or $100 into a high-yield account or ETF every month. Automation keeps you consistent without thinking about it.
Step 3: Pick One High-Yield Starter
For absolute beginners: start with high-yield savings or a bond ETF.
For slightly advanced readers: try a mix of dividend stocks and muni bonds.
Step 4: Diversify Slowly
Spread your money.
- 50% safe (savings/CDs)
- 30% stable (munis or bond ETFs)
- 20% growth (dividends or REITs)
As we always say:
“Don’t put all your eggs — or your rupees — in one basket.”
Step 5: Review Every 3 Months
Set a reminder: “Money Check-In.”
- Review your returns.
- Adjust slowly.
- Learn as you go.
6. Real-Life Example: John from Texas
Last Labor Day, John from Texas decided to finally put his extra savings to work. He only had $5,000, but instead of letting it sit idle, he split it smartly:
- $2,000 went into a high-yield savings account earning 4.5% interest.
- $1,500 was invested in SCHD, a dividend ETF that pays regular cash.
- $1,000 went into MUB, a municipal bond ETF for safer, steady returns.
- $500 was placed in VNQ, a real estate ETF to tap into the property market.
By the next Labor Day, John wasn’t just earning extra income — he was confident and ready to diversify more.
His favorite quote?
“I didn’t need to be rich to start. I just needed to start to get rich.”
Final Words: Celebrate With Smart Income
Labor Day is about honoring your hard work. What better way to celebrate than by building income that works for you?
Remember:
- Start small.
- Stay consistent.
- Review often.
As we love to say here at TheMoneyWagon:
“It’s not about timing the market — it’s about time in the market.”
This Labor Day, take the first step. Your future self will thank you.
