New year, new me. That’s right, it’s New Year’s resolution season. We are all familiar with the common resolutions: exercise more, spend more time with family, visit a new country. These are just a few, and we are all thinking of ways we can improve in 2024. If you’re thinking about how to improve your financial situation this year, here are a few simple ideas to consider.
Upgrade your savings account – Higher interest rates mean you can do more with your cash savings. The rates on traditional savings accounts, for the most part, are close to 0%, while most money market funds and high-yield savings accounts currently pay 4-5% annually. These options are low-cost and easy to open. If you have excess cash, this is a quick way to make it start working for you.
Increase your retirement contributions – Did you get an annual raise? Increasing your retirement contributions when your pay goes up is a great way to build up your savings without using a lot of willpower. Because your income went up, you won’t feel the impact on your paycheck, and small increases in your retirement savings can mean thousands of dollars down the road. Many 401(k) plans include an option to sign up for automatic annual increases. Setting your contributions to increase by 1% per year automatically is a great way to stay on track for retirement without having to think about it.
Put together a financial plan – Sitting down with a financial planner is a great way to organize your financial picture and increase your confidence in your ability to accomplish your financial goals. It’s a great way to understand your current financial situation, clearly define where you want to go and devise a plan to get there. If you’re looking to attain some peace of mind when it comes to your finances, sitting down with a planner is a great place to start.
Happy New Year from the Capital Insight Partners team!