The start of a new year is a good time to initiate money moves that will have a positive impact on your future. Take stock of your personal finances: What poor habits can you shed? What new techniques can you implement?
Here are three of the best money moves you can make now:
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Establish Regular Transfers to Your Savings
One of the smartest money moves you can make is to pay yourself first. While it requires discipline, it’s a thing that many savvy savers do every time they get paid. By creating automatic transfers from your checking to your savings and investment accounts, you increase your savings and shore up your financial future.
Go into your checking account through your bank’s website or smart-phone app and set up a recurring transfer to a connected savings or external account. Do the same thing for your investment accounts. Before you know it, you can learn to live within the cash available to you while you are saving and investing. You won’t even have to think about it. (Note: If you carry credit card debt, you want to pay that off in full before implementing this tactic.)
This strategy can also help you create an emergency fund in case you have an unexpected financial setback that reduces your income. The ideal emergency fund should cover at least three months’ expenses. Establishing regular transfers to your savings will help put your mind at ease if something unexpected happens.
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Move to a Savings Account With Higher Interest
As you are working on that first money move for 2023, think about where you want to save your money. There are many places to save beyond traditional bank savings accounts. The goal is to find an account that earns a high interest rate which in turns helps you earn more money.
High-yield savings accounts are a great option that offer interest rates above the national average of 0.24% at the time of this writing. Frequently, high-rate accounts are found at online banks. A recent CNBC article discusses high-yield savings accounts. You can also research what is available at these websites:
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Link Financial Accounts to a Budgeting App
It is easy to overspend. When you track your expenses, you gain an understanding of where your money is actually going. This will help you learn to live within your cash means. You may need to trim spending in different expense categories to maintain your savings goals and avoid credit card debt. Even when you have your spending under control, it’s always a good idea to monitor your spending and savings so you know your financial position and what your next money moves may need to be. Be in control with these great apps:
Otto will help you create a spending plan without needing a detailed budget. It will allow you to stay on top of your spending with an intuitive user experience, where you can make “on-the-fly” changes when needed.
This highly-rated, free app can help you keep an eye on cash flow and set spending limits in different budget categories.
Plan ahead for financial decisions with this zero-based budgeting system, which has you make a plan for every dollar you earn. Become more intentional with your money with hands-on budgeting.
These three money moves can lay the groundwork for a more prosperous future. Take advantage of these simple tips to keep building your current and future wealth. By paying attention to the details and making your money work for you, you can make your money go even further for years to come.
This blog is published to provide you with general information only, and is not intended to provide specific or comprehensive advice. Money Care, LLC encourages individuals to seek advice from competent professionals when appropriate.
