Even if you aren’t a certified financial planner, it doesn’t mean you can’t learn from expert investment advisors to help make all your next money moves count. You can use financial planning services or robo-advisors to help you with some big-picture estate planning or retirement planning, but you can also make some decisions on your own to get the ball rolling.
Read: 3 Ways To Recession-Proof Your Retirement
4 Pieces of Financial Advice To Improve Your 2024
After all the whirlwind wrap of 2023, you may be left wondering what financial products or investment advice will serve you best in 2024. It may be time to consider a new financial institution or even figure out a faster way to pay down debts such as student loans. Whatever the reason you want to build your bank account, here are four ways to get started for a new year and a new you.
Build your emergency fund in a high-yield savings account.
Shop around for the best CD rates.
Increase or max out your 401(k) contributions.
Lower the APR on your credit card debt.
1. Build Your Emergency Fund in a High-Yield Savings Account
Rather than putting your money in a traditional savings account, try a high-yield savings account instead. This can help you earn much better interest rates to grow your money faster. As an emergency fund is simply a savings account with a purpose, having these funds earn a better APY can only help keep you covered.
The intention of an emergency fund is to ensure you have a nest egg or at least a safety net when the unexpected happens. Financial experts advise that you keep three to six months’ worth of expenses in your emergency savings so you don’t have to go into debt just to pay your bills if you experience a financial shock. Here are some reasons why you should put your emergency fund into a high-yield savings account.
2. Shop Around for the Best CD Rates
The beginning of the year is a great time to revisit what savings products are best serving you. With interest rates and APYs fluctuating, it is a great time to lock in a good fixed rate with certificates of deposit, or CDs.
They come in a variety of term lengths and rates with range from bank to bank so make sure to shop around and find one that not only offers a high APY but also works within the timeframe of your financial goals. GOBankingRates has ranked the following among the Best CD Accounts for 2024:
3. Increase or Max Out Your 401(K) Contributions
One of the biggest ways people leave money on the table is to not take full advantage of a 401(k) plan or other employer-sponsored retirement savings. You may want to revisit what you are contributing and make sure it’s the highest that will be matched by your employer. Here are some key takeaways:
If you don’t get your 401(k) match, it would be like not taking your paid vacation day or other benefits your company offers.
Even if you are getting the full employer match you can still put an extra 1% to 2% to give you a better long-term financial security and break on your taxes.
Just adding a percentage point or two to your contributions can add thousands per year to your retirement savings.
Not only do you put away more funds for your future but this also reduces your taxable income which saves you money.
4. Lower the APR on Your Credit Card Debt
The amount of interest you pay on your debt can lead to a vicious cycle of financially treading water instead of paying off debts to get your head above water. As credit card APRs are tied to the federal funds rate, when the Fed increases the interest rate it affects how much interest you pay on your credit card debt.
There is no guarantee when rates will go back down, however, now may be the time to apply for a 0% transfer balance card to help avoid paying more in interest than you need to. This means you can transfer your balance to a new credit card for a small fee, but pay 0% interest on the balance for the introductory period. Make sure the balance transfer fee doesn’t exceed the amount you’d be saving in interest with the new card, as that would defeat the purpose.
Final Take To GO: Better Money Management in 2024
The bottom line is that wealth management isn’t one big move for personal finances but rather a series of intentional steps. After you check your life insurance options, improve your credit score or even find better interest rates you may be surprised to find that just a few small money moves snowballed into a brighter financial future. Here’s to a better bank account balance in 2024.
Here are some answers to frequently asked questions about what money moves financial experts think you should take in 2024.
What is the 50/30/20 rule?
The 50/30/20 rule for savings is when you break your money into percentages. You take your paycheck and allocate 50% to needs, 30% to wants and 20% to savings.
How I can grow my money?
How can I increase my savings fast?
What is a good credit score?
How much of your income should you save every month?
This article originally appeared on GOBankingRates.com: 4 Money Moves You Need To Make in 2024