We're rolling right on into the new year with our nifty new financial goals! 🤑 Maybe we'll save enough to buy a Tesla…but only if they fix those steering software issues (yikes bikes). 🥴 More realistically, we'll be happy if we have enough to buy our groceries without crying. 🛒
If you've got your financial planning hat on, stay smart! Let's dive into some mishaps that could trip you up. 👇
Here’s Five Fast Facts on common financial planning mistakes:
- 💰 Save It for Later - Interest rates are still pretty wild out there. If you have a lot of debt, chances are paying it down is a money goal of yours. However, high interest rates also mean you'll make more money in a high-yield savings account. While you should totally chip away at your debt, consider putting at least some of your money away to get the most bang for your buck in this current environment.
- 🐷 Just In Case - Right now, almost 40% of Americans wouldn't be able to cover a $400 emergency. Don't be part of that statistic! A rule of thumb is to have between three to six months worth of necessary expenses socked away in case you need it. To make saving easier, set up automatic transfers to your emergency fund account on each payday. You won't even miss it.
- ⛱️ Maxin' & Relaxin' - It's easy to skip over retirement planning in your new year money goals, mainly because we think we'll get to it later. If your employer offers a 401(k), contributing to it is always a smart choice. Not doing so could be a huge regret over the long term. If they have a company match program, make sure you're taking advantage of it. It's free money!
- 🔙 Reverse, Reverse - People get eager to put last year behind them, but a look back could do you good. Review your bank and credit card statements from last year and take an honest look at your spending habits. Identify where you need to make changes and make sure bad behavior doesn't follow you in 2024.
- 📜 Where There's a Will, There's a Way - Did you know only 33% of Americans have a will in place? Hey, no one likes to think about kicking the bucket, but estate planning could save your loved ones a headache in an unexpected tragedy. If you don't have a will, make it a 2024 goal to put one in place. If you have one and haven't checked it in awhile, review it to make sure everything's still how you'd want it.
🔥Bottom line: 2024's going to be a great money year for you, we can smell it. We also consulted our crystal ball and it agreed. With these money mistakes out of the way, there's no stopping you. Is your lifestyle creeping up on you…and your wallet? Find out what to do about that pesky lifestyle creep effect here.
What's your biggest financial goal for 2024?
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