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Want to give your savings a boost in the new year? Read on for some tips.
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The more money you’ve got in savings, the more financial protection you buy yourself, whether in the context of emergencies, retirement, or something else. And as such, you may have the goal of boosting your savings nicely in 2024.
Doing so will hopefully be an attainable goal. The good news is that inflation has been cooling. In October, it was only 3.2% on an annual basis, as measured by the Consumer Price Index. So if things hold steady or, better yet, improve, you may find that you’re able to grow your savings by spending less on essential costs.
But it might take more than just a drop in inflation to help you achieve your savings goals. If you’re eager to boost your savings, here are a few tips worth employing.
1. Put the process on autopilot
When you put savings matters into your own hands, you risk falling victim to human error. You might forget to move money into your savings one month. Or, you might give into the temptation to join your friends on a weekend getaway, taking your savings account contribution with you.
If you’re serious about boosting your savings in 2024, put the process on autopilot. Arrange for an automatic transfer each month where a sum you can afford leaves your checking account and lands in your savings account off the bat, before you get a chance to spend it.
Incidentally, the automation factor is one of the things that makes 401(k) plans so valuable. These retirement plans are funded through payroll deductions, so when you sign up for one, you’re following the same advice of putting the process on autopilot. And even if you’ve never participated in a 401(k) before, if you sign up in the new year, you may find that after a few months, you don’t even miss the money being taken out of your paychecks.
2. Steer clear of high-interest debt
Some people carry a credit card balance from time to time and don’t really think much of it. But if you want to boost your savings in 2024, make a point not to take on any high-interest debt like a credit card balance.
If you rack up interest on that debt, you’ll have to pay your credit card issuer even more. If you steer clear of interest, you can add that extra money to your savings instead.
One thing you may want to do is keep steady tabs on your credit card balance during the month to ensure it’s 100% payable by the time it’s due. That could mean logging into your account every four to five days to see what you’ve spent. It’s a task that might eat up a little of your time but allow you to save a lot more money.
3. Take the free money your employer is willing to give you
Many employers that offer 401(k) plans also match worker contributions to some degree. If you want to grow your long-term savings in 2024, figure out what match you’re entitled to and contribute enough to snag it in full.
So, let’s say your employer is willing to match 100% of contributions up to 3% of worker salaries. If you earn $60,000 a year, it means you have $1,800 from your employer coming your way if you put $1,800 of your own earnings into your 401(k).
4. Cut expenses you really won’t miss
You’re no doubt well aware that the less money you spend month after month, the more you have the potential to save. But you also don’t want to sign yourself up for a miserable 2024 that’s devoid of all things fun.
The good news is, you don’t have to. Rather than plan to slash expenses and deny yourself the things you love, go through your recent credit card and bank statements and do a review of your recurring expenses. Chances are, there’s one bill you can eliminate without wrecking your quality of life.
For example, let’s say you’re currently signed up for both Netflix and Hulu, but you use the latter much more so than the former. Try canceling Netflix for a bit and see where that takes you. You may end up not missing it at all, and that way, you can put the money you would’ve spent on it into the bank.
Growing your savings is a great goal for the new year, and hopefully, receding inflation will help make it easier. But either way, these strategies could really set you up for success in 2024, so employ them as soon as January hits, if not sooner.
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