Top 10 money moves you can make for 2024
If grabbing hold of your finances is one of your 2024 resolutions or you simply want to make your money work harder for you in the new year, here are 10 smart money moves to help you make that a reality.
Take a Financial Wellness Assessment – The start of a new year is a great time to take a step back, analyze your spending, budgeting, and saving habits of the past year so you can reflect on how you’re currently doing financially. Town & Country’s Financial Wellness Assessment tool can provide a snapshot your personal finance, and give you recommendations and action steps on where you can make improvements.
Identify Your Financial Goals for the Coming Year – Goals can be large or small. Maybe you want to pay off that credit card debt, buy some new furniture or add a heat pump to your home. Whatever the goal, write it down and make sure it is specific, has a time limit, can be measured and most of all, important to you.
Create a Budget Based on Your Goals and Priorities – Take a good look at your spending habits to determine where your money is going. How much money do you bring in each month and how much of that goes to household expenses, childcare, commuting, entertainment, clothes, paying off debt, etc. Then create a spending plan that reflects your priorities and goals. There are many budgeting tools you can use, and different types of budgeting plans you can follow to help you create and manage a budget that works with your lifestyle. Check out Town & Country’s Money Management program.
Review and Tweak Your Spending Habits – Once you know how much of your money will be going to each budget category, take a look at how you are spending your money each day. Do you buy coffee on the way to work each morning? Go out to lunch a couple of times a week? Pay for services you don’t really use? Take the time to assess your spending habits and commit to making a few changes. Little things can add up and you will to be able to save more for the things that matter most for you.
Make Sure Your Emergency Fund is Ready for an Emergency – Cars break down. Appliances stop working. People lose their jobs. In other words, life happens. Make sure you are ready for unexpected expenses with an emergency fund.If you don’t have one, begin the new year by building an emergency savings fund of $1,000. Start out saving with what you can afford, even if it’s small amounts. Ideally, you want to work toward having three to six months of living expenses in some type of account that allows you to withdraw at any time without penalties. This will help if you encounter anything from car trouble to a medical emergency.
Boost Your Retirement Savings – It is never too early to start saving for retirement, and the sooner you start, the more time your money has to grow over the years. Many companies offer employees 401(k) or other workplace retirement plans. A great way to save is to contribute tax deferred dollars to these accounts. But it does pay to try to contribute enough to your 401(k) to snag your full employer match, so you can get the most amount of “free” money possible.
Automate your Savings — You may be more likely to meet your 2024 savings goal if you put the process on autopilot. Arrange for a portion of every paycheck you get to land in your emergency fund or other savings accounts automatically so you can stay on track to reach your goals. If you don’t see it, you won’t spend it.
Review Your Credit Report – It is important to know and monitor your credit score, especially if you are planning on making any major purchases in the coming months.Plus, be sureto check your credit report regularly and take steps to repair any negative aspects. TCFCU offers its members Credit Score by SavvyMoney, a free credit monitoring and management tool that makes it easy for you to manage your credit. Learn more here.
Plan to Tackle Debt – If you have outstanding high-interest debt, such as credit card balances, make it a priority to pay it down in the new year. High-interest debt can quickly add up and become a significant financial burden. To eliminate this type of debt, try to allocate any extra funds you have saved by modifying your spending toward paying it down, starting with the debts that carry the highest interest rates. This not only reduces your overall debt but also saves you money on interest payments.
Expand Your Financial Literacy — Learning more about money management, debt, credit, budgeting, retirement, etc. is a great investment you can make in yourself and will not only help you now but for years to come. Town & Country offers a very user-friendly financial education program called Banzai on its website. Learn more here.
If you would like to discuss your current financial situation or goals for the new year with a member services representative you can connect by emailing us at info@tcfcu.com, calling 800-649-3495 or book a consultation here.
