5 smart New Year's money resolutions to make for 2024
It's hard to believe that there are just a few weeks left in 2023. But as 2024 approaches, it's the perfect time to reflect on the last year and determine the changes you want to focus on when the new year rolls around.
While you may be planning to focus your New Year's resolutions on getting healthy at the gym or eating better, don't overlook the changes that need to be made in order to reach your financial goals. By keeping your finances in mind, you can set resolutions that will pave the way for a prosperous future.
To help kickstart a solid financial journey and secure your financial well-being, here are some impactful money-focused resolutions that you may want to consider adding to your list this year.
Start the new year on the right foot. Explore your top savings options here.
5 smart New Year's money resolutions to make for 2024
As you determine your New Year's resolutions, consider adding these to the list:
Move some of your savings to a certificate of deposit
One of the most effective ways to maximize your savings is by exploring different investment options. While traditional savings accounts offer safety, they often come with minimal interest rates that may not keep up with inflation. For example, the average regular savings account rate is currently 0.46% — which is lower than the current inflation rate.
So rather than settling for a low interest rate on your savings, consider diversifying your savings by allocating a portion to a certificate of deposit (CD). CDs are accounts that offer fixed interest rates — and in return, you agree to leave your money deposited in the account until the CD's maturity date.
By locking in your money for the CD term, which typically ranges from a few months to several years, you typically get higher interest rates compared to regular savings accounts. This move ensures that your money works harder for you, helping it grow over time.
And, right now it's easy to find CDs offering 4.5% APYs or higher, depending on the CD term. So if you're leaving your money in a different type of account, you could be passing up on an easy way to rake in interest earnings.
Find the top CD rates you could be getting here.
Quit your regular savings account and open a high-yield option instead
Traditional savings accounts may provide a sense of security, but they often fall short when it comes to earning substantial interest. This upcoming year, take the step of closing your regular savings account and opening a high-yield savings account instead.
High-yield accounts offer significantly higher interest rates than their traditional counterparts, allowing your money to grow at a faster pace. In fact, there are some high-yield accounts offering rates of 5% or higher on your money, which can make it easy to rake in the interest returns on your savings, especially compared to what you could earn with a regular savings account.
To find the right high-yield savings account, research different banks and financial institutions to find the account that best suits your needs. Remember, the key is to make your money work for you and not the other way around.
Create a budget and stick to it
Budgeting is a fundamental aspect of financial success. Start the year by creating a realistic budget that takes into account your income, expenses and savings goals.
Be diligent about tracking your spending and make adjustments as needed. A well-managed budget not only helps you save more but also ensures that you have a clear understanding of where your money is going.
Invest in your financial knowledge
In the ever-evolving world of finance, staying informed is crucial. One resolution that could benefit you in 2024 is investing time in expanding your financial literacy by reading books, attending workshops or taking online courses. After all, understanding the intricacies of investing, taxes and personal finance can empower you to make informed decisions that align with your long-term goals.
Review and update your insurance policies
Life is unpredictable, and having the right insurance coverage is essential for financial security. Take the time to review your insurance policies, including health, life and home insurance. Ensure that your coverage aligns with your current needs and make adjustments if necessary. Adequate insurance provides a safety net that can protect you and your loved ones from unexpected financial setbacks.
The bottom line
It's crucial to regularly reassess your financial goals and make adjustments as your circumstances change, no matter what time of year it is. But by adopting these smart money resolutions for 2024, you'll be taking significant steps toward building wealth, achieving financial security and setting yourself up for a successful and prosperous future.
