3 smart money moves to make before 2024
The process of financial planning is ongoing for most people. After all, your money strategies can shift throughout the year due to any number of economic challenges. And, over the last eight months, we've experienced lots of these challenges, including high inflation, a potential recession, an unpredictable market and even bank closures, all of which have impacted the economy — and, in turn, your money.
Given that there are a range of factors that can impact your finances, it's important to regularly review and adjust your money strategies so you can stay on track with your finances. And as we inch closer to the new year, it's time to start thinking about your upcoming money goals for 2024 and what it will take to get there.
But you don't have to wait for the new year to roll around to get started. There are a few smart money moves you can make right now to help you kick off next year on the right financial footing.
Get a head start on 2024 by exploring the top savings rates available to you right now.
3 smart money moves to make before 2024
You don't have to completely revamp your financial plan before the new year. To make sure you're prepared for what may come in 2024, consider making these three smart money moves right now.
Ditch the regular savings account
If you're still relying on a regular savings account to grow and store your money, you need to rethink that strategy. Right now, traditional savings accounts are only offering an average interest rate of 0.42%, so if your money is in this type of account, your interest earnings aren't keeping up with inflation.
One of the smartest moves you can make before the new year is to transfer your savings to a high-yield savings account instead. These accounts typically offer much higher rates than traditional savings accounts, and that's especially true now due to the numerous Fed rate hikes that have occurred over the last year. By making the switch, you'll earn a better return on your money, allowing it to grow at a faster pace.
You can easily find high-yield savings accounts offering a rate of 4.5% or more right now — and many of these accounts don't have minimum balance requirements or extra fees to contend with. Online banks usually offer higher interest rates than the big banks due to their lower overhead costs, making them an attractive option, but be sure to compare options.
Learn more about your high-yield savings account options here now.
Find ways to safely invest
It's impossible to predict where the market is headed in the next few months, so it's important to find safe ways to offset the riskier investments in your portfolio. That's where certificates of deposit (CDs) come in.
Like high-yield savings accounts, CDs are a good option for earning guaranteed, higher rates of interest on your money — and since rates are unusually high right now, it's a good time to lock in your rate. The caveat is that you have to leave your money deposited in the CD account until its maturity date. However, it's easy to find CDs with rates above 5% right now, including short-term CD options.
Opening a money market account is another money move worth considering before 2024. These accounts function much like your typical savings account but are more flexible, allowing you to write checks and access your funds easily. Some may require you to have a higher balance than others, but they still provide better interest rates than traditional savings accounts, so your savings will see more substantial growth over time.
Check your CD options here now.
Get rid of high-interest debt
Debt with a high interest rate can be a significant burden on your finances. The longer you carry that debt, the more interest you'll pay — and that's especially true right now, as the recent interest rate hikes have resulted in higher credit card interest rates, and, in turn, higher credit card debt payments, for most people. That's why it's important to focus on getting rid of this type of debt before the new year begins.
Start by creating a debt repayment plan, and if you need some extra help, it may be useful to consider consolidating your debts into a low-interest personal loan or a balance transfer credit card to save on interest costs. This step will not only free up your cash flow but also improve your credit score, making it easier to access better financial opportunities in the future.
The bottom line
Making these strategic money moves well before the new year rolls around can have a big impact on your finances now and in the long run. Moving your money to a high-yield savings account, investing in safe options and eliminating high-interest debt are all essential steps to secure your financial future. With a proactive and disciplined approach, you can set yourself up for financial success later this year and into 2024.
