It’s the start of a new year, and I’m guessing you have big goals that you want to achieve this year.
Maybe this will be the year that you get into a good exercise routine or start a gratitude journal.
But most importantly, I hope that this will be the year you take control of your finances.
The beginning of the year is a great time to think about long-term financial goals you want to achieve – like diversifying your investments or saving for your kid’s college education.
But it’s also a great time to make some quick financial changes that can help set you up for long-term financial success.
Today, I’m going to give you 7 financial wins that you can do in 15 minutes or less – and set yourself up for financial success in 2024 and far beyond.
7 Quick Financial Wins
1. Transfer money to a high yield savings account
A high yield savings account functions like a regular savings account…BUT it offers a much higher rate of interest, which helps your money grow faster! This is especially important in today's low-interest-rate environment, as it helps beat inflation and preserves your purchasing power.
Plus, because of the rising interest rates, the return on some high yield savings accounts are higher than they’ve been in DECADES!
High-yield savings accounts are also known for their safety and liquidity, since they’re usually insured by the FDIC (or the equivalent in other countries) up to a certain limit, making them a low-risk option.
Moreover, they are easily accessible, allowing you to withdraw funds when needed, making them ideal for building an emergency fund or saving for short- to medium-term goals.
Lastly, they are convenient to manage, often offering online and mobile access, making it easy to track your savings and set up automated transfers for consistent contributions to your account.
And while you’re already transferring your money, you might as well…
2. Set up automatic savings
Many banks allow you to set up automatic transfers from your checking account into a high yield savings account. Set aside a percentage of your paycheck to automatically move into your savings account so you can give your savings a boost without having to do any extra work!
Setting up automatic savings has several advantages.
First, it promotes financial discipline by ensuring a portion of your income is consistently saved before you have a chance to spend it impulsively, helping you reach your financial goals more effectively.
It also reduces the temptation to skip or delay savings contributions, ensuring you stay on track.
On top of that, automatic savings can be a stress-free way to build an emergency fund, save for long-term goals, or invest for the future, as it becomes a regular habit. It can simplify your financial life by automating the process and can potentially earn you more through compound interest.
Finally, it offers peace of mind by knowing that you're proactively working towards your financial objectives without having to think about it constantly.
3. Bump up your retirement contributions
If you can, max out your retirement contributions. The more you save right now, the more time your money has to grow…and the less you’ll have to worry as you reach retirement age.
Maxing out your retirement contributions offers several significant advantages. Firstly, it enables you to take full advantage of tax-advantaged retirement accounts such as 401(k)s and IRAs, potentially reducing your current tax liability and allowing your investments to grow tax-deferred until retirement. Over time, this can lead to substantial savings.
Secondly, it provides financial security in your later years, ensuring you have a comfortable and worry-free retirement. By contributing the maximum allowed, you're more likely to achieve your retirement goals and maintain your standard of living.
Additionally, maxing out your contributions demonstrates discipline and a long-term financial commitment, instilling a savings mindset and helping you build a significant nest egg.
It also takes advantage of the power of compound interest, as your investments have more time to grow and accumulate returns.
Overall, maximizing retirement contributions is a smart strategy for securing your financial future and enjoying the benefits of a well-funded retirement.
4. Cancel a monthly expense
Maybe two years ago you got swept up in New Year’s resolutions and signed up for a gym membership you STILL haven’t used. Or maybe you don’t need a subscription to Netflix AND Hulu.
Canceling a monthly expense that isn’t serving you means that you have more money to spend on things that bring true value into your life.
5. Roll over your old 401(k)s
Do you have a 401(k) from a job that you left? Or maybe you’ve even lost or forgotten about old 401(k)s.
Rolling over an old 401(k) into an Individual Retirement Account (IRA) or a new employer's retirement plan offers several advantages. First and foremost, it provides greater control and flexibility over your retirement savings. With an IRA, you have a wider range of investment options, enabling you to diversify your portfolio to suit your specific financial goals and risk tolerance.
Furthermore, a rollover simplifies your financial life by consolidating multiple retirement accounts into one, making it easier to manage and monitor your investments. It can also potentially lower fees, as some 401(k) plans may have higher administrative costs.
Additionally, a rollover can help you avoid early withdrawal penalties and maintain the tax-deferred status of your retirement savings.
Overall, a 401(k) rollover empowers you to take charge of your retirement planning and optimize your investment strategy while maintaining tax benefits.
Capitalize is a free and easy way to find old retirement accounts and consolidate them into one easy-to-manage account. And if you want to learn more, we have a step-by-step tutorial for using Capitalize.
6. Pay your credit card bill…even if it isn’t due yet
Credit utilization (aka credit usage) is the 2nd biggest factor in determining your credit score. You want to keep your credit utilization nice and low. When you pay your credit card off throughout the month, you instantly boost your credit score and save money on future interest payments!
7. Plan your weekly money ritual
If you’ve been around, you have definitely heard us talk about weekly money rituals. But if you don’t know what that is, your weekly money ritual is a cornerstone of your financial success. It’s an hour that you set aside every single week to work on your finances.
This could mean reviewing credit card statements, budgeting for an upcoming trip, or reallocating your investment portfolio.
If you don’t already have an established weekly money ritual, then take a few minutes to decide when and where you can commit to going over your finances every week…and brainstorm a few ways to make it enjoyable!
If you want some help, we have some resources to help you set up a weekly money ritual you love AND a video where Britt completes her own weekly money ritual, so you get to see how she makes it the highlight of her week and what she does during it.
Ready to Make This Your Best Year Yet?
I challenge you to spend 15 minutes implementing just one of these tips and enjoy the rewards for years to come!
Like I said, if you want our proven system for building wealth and taking control of your money, check out our free masterclass!
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