Money matters aren’t always easy at the beginning of the year, especially if your methodology is best described as “unprepared.” Thankfully, Project Bold Life keeps its digital fingers on the pulse of personal finance trends, and, as a result, has some tips that might help. It’s 2024! Get your money in shape!
1.  Open a High-Yield Savings Account
High-yield savings accounts earn higher yields, providing their holders with a higher interest rate advantage. Doing this helps your money grow faster than it could in a traditional savings account, which only has an average yield of 0.46%. In addition, high-yield savings accounts could have yields ranging from 4.30% to 4.10% on a deposit.
Financial experts note that high-yield savings accounts are the best option for emergencies and other short-term saving goals. They can also give you better access to your money whenever without paying an early withdrawal penalty.
The best way to maximize your savings with this option is to research all credible brick-and-mortar banks, financial institutions, and online banks. Some online accounts have fewer fees and restrictions, which provides higher APYs.
2.  Paying Down High-Interest Debts
One of the best wealth management tactics people should use in 2024 is paying down their high-interest debts. Check all your finances and look for debts that have high-interest rates. Unlike others, these loans or credit cards compound quickly and would make it more difficult to pay off. Starting or completing to wipe off your debts will help you save more for other financial contributions.
Having zero high-interest debts at the start of the year can help you get an interest-free period of 21 months, making it faster to pay the principal balance. In addition, having debt consolidation loans can reduce your debts as they have fixed and lower interest rates than most credit cards.
It’s also best to consider using the snowball method when paying off your high-interest debts. The snowball method is when you continue paying the minimum fees on all your credit cards and loans and pay any amount you can over the minimum payment of your smallest balance each month.
3.  Open A CD
Most financial plans today come with high-interest rates, which compound quickly and become more difficult to clear. One way to avoid using up all your money to pay off these debts is to open a CD or a certificate of deposit.
The CD is an account banks or credit unions provide wherein account holders can earn interest by depositing their money for a specific period. Unlike regular savings accounts, a CD has higher interest but would require you to keep your money for the full term to earn it. It could be months or years, depending on what the bank or union offers. They’re low-risk with guaranteed returns, which makes them an attractive option for people looking to save their capital and earn competitive interest.
4.  Build Your Emergency Funds
One mistake many people make, which could impact their savings and yearly finances, is not building up or creating an emergency fund. Due to the unpredictability of today’s economy, having a financial safety net is a must.
Building your emergency funds is best done during the start of the year, and experts recommend that people aim to save at least six months of living expenses in an accessible account. Emergency funds provide account holders with peace of mind. In addition, they could use them for unexpected expenses, which would allow people to keep saving for their long-term goals with little difficulty.
5.  Check Your Credit Report and Score
Some people don’t check their credit reports throughout the year and have no idea why their credit scores are sometimes inconsistent, and that’s a big mistake. Credit reports have the date you need to know which ones influence your credit score, and knowing this would help you identify how much you’ll spend for interest. A higher credit score means fewer interest payments.
6.  Check Your Retirement Saving Goals
Checking in with your monthly retirement contributions should be part of your routine financial checks. Doing this would allow you to see if your savings and contributions are on the right track and if you’re saving enough each month to reach these goals.
These check-ins help ensure you’re not behind and let you know when to hold off with the contributions. Getting your retirement saving goals updated or started early can give your money more time to grow.
7.  Change/Update Your Passwords
This one isn’t just good advice for finances–it’s good advice for all aspects of your digital life. Many cybersecurity experts recommend people update or change their account passwords every quarter. Some financial coaches stick with creating strong passwords to avoid password changes often. Despite that, managing your accounts’ passwords is a must to ensure your finances and financial records’ protection.
Cybercrimes are at an all-time high, and securing your financial accounts can prevent you from becoming a victim. Although stronger passwords are easier and more convenient to remember, it’s best to change your passwords at least once a year and use encrypted password managers to keep them safe. Using Google Password Manager’s Password Checkup function can also help identify which passwords need changing.
Don’t forget the book that lays out the principles of goal-achievement and attaining a Bold Life!
