Even if you feel like you’re pretty on top of your finances, the start of a new year is the perfect time to reevaluate. There might be better ways to save or plan for retirement, or more efficient ways to keep a budget that works. Whatever it is, it’s worth taking a look at money managing methods for the New Year. If you decide not to change anything, at least you became more informed!
Tips for better saving
- Keep at least 3-6 months’ worth of income in a regular savings account for emergencies.
- To maximize your returns, do the research to find the best rate on savings accounts at banks in your area.
- Have a set amount of your paycheck automatically deposited to your savings before you ever see it.
- Check out credit unions, because they often have the lowest fees for their members.
Retirement savings tips
- Don’t compromise your retirement to pay your kid’s way through college. Retirement comes first.
- Use a 529 savings account for college savings, and aim for half of what the expected cost will be.
- Consolidate your own student loans to stretch the payments out a little if it will allow you to participate in your company 401k.
- Once you have a 401k with company-matched funds, contribute just enough to get the match if you have other debts to pay off. When you’re out of debt, increase your contributions accordingly.
- Use a debit or credit card to help you track your spending. If you use a credit card, be sure you pay it off every month.
- Keep track of you net worth. Your net worth is directly tied to your monthly budget. Whether you save more than you spend, or spend more than you earn, it’s all going to be reflected in your net worth.
- Think ahead and prepare for those periodic expenses. These include things such as property taxes, car repairs, insurance costs and other items that you pay for once or twice per year. Work them into your budget and prepare for them so they don’t set you back when they come due.
- Look for ways to lower utility costs and interest rates.
- Check into the many budgeting apps out there that make it easier to control your money!
Do you have any money managing tips for the New Year? Share what you’ve learned!