5 ways to improve your financial health in 2024

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As you save money in 2024, you may need to make one or two adjustments to your personal finances to brighten your financial future. Before you pay for a financial planner, there may be some money management methods you can take care of yourself. Financial security is paramount, and making changes now will increase your chances of achieving your goals later.

5 money moves to improve your financial health

How you approach your personal financial choices and money moves doesn’t have to be made all at once. You can break it down into smaller, more manageable steps to get your financial life back on track. Here are his five savings and investment tips to enhance your financial wellness program in 2024.

1. track your spending
2. help me make more money
3. invest your savings
4. Review your debt repayment methods
5. Pay yourself like an employee

1. Track your spending

The first way to improve your financial health is to assess exactly what you’re spending and saving. Today’s automatic payment options are convenient, but when you’re out of sight or out of mind, your monthly expenses can end up being higher than they need to be.

Tracking your spending is as easy as creating a spreadsheet to see where subscription fees can be canceled and credit card interest rates can be lowered. Knowing where you stand is half the battle, but if you want to get more specific, here are some highly recommended budgeting apps for 2024.

• every dollar
• Inab
• monarch
• mint
• honeydew
• good budget
• Faget
• pocket guard
• rocket money

2. Earn more of your money

How you save money is almost as important as where you save it. If you’re not taking advantage of higher-yielding savings products, you’re leaving your money behind. Even if it’s just an emergency fund, keep it in a high-yield savings account, CD, or money market account.

Higher interest rates and compound interest mean you can earn more money, but there’s no reason why you can’t take advantage of such easy gains and profits. Although these accounts don’t offer the same return potential as stocks or bonds, the risk is lower and the returns are guaranteed.

3. Invest your savings

High-yield savings products are great, but you may have the opportunity to grow your wealth faster by investing your money in other areas. Investing in stocks, bonds, real estate, and low-cost index funds can significantly improve your financial health. There are no guarantees, but with higher risk comes higher reward.

When it comes to investing your money more wisely, your savings in retirement accounts may also have room for improvement. Make sure you’re making the most of your 401(k) account’s employer match. Doing so now will increase your financial security in retirement.

4. Reevaluate your debt repayment methods

Before you can buy a home, you must first pay off your student loans and credit card debt. You may be able to lower your bill by negotiating. For example, you can talk to your credit card issuer’s representative to waive late fees or lower your APR even further. Don’t automatically pay your bills because they might not cement as much as you thought.

Reanalyzing your debt is important in evaluating how far you can reduce your monthly expenses. Here are some tips to jump-start your reassessment.

• Automatically deposit a portion of your paycheck into a separate account just for debt repayment.
• Eliminate unnecessary spending and reduce discretionary spending.
• Create a realistic budget that fits your current situation and financial goals.
• Evaluate the total principal balance of each debt and start repaying the one with the highest interest rate first.
• Consolidate your credit card debt by paying less interest each month.

5. Pay yourself like an employee

Paying yourself first is great mentally for improving your financial health. What this means is to work backwards through your budget and focus on your savings goals rather than your spending. Basically, treat the money you save as a check that you have to draw on yourself.

Creating a reverse budget in this way will help you practice the following money management habits:

• Use something like the 50/30/20 budget rule to allocate a percentage of your monthly paycheck to savings. This means spending 50% of your paycheck on necessities, 30% on essentials, and 20% on savings. The 20% is the first portion you should consider paying yourself.
• Automate your savings and deposit them directly into a separate account that you only access in emergencies.
• Payment accounts can take the form of investment accounts, retirement plans, estate plans, or IRAs.
• The amount you pay yourself should increase depending on the raise you receive each year.

The Final Commitment: Financial Advice and Wellness

Improving your financial well-being is about more than just improving your credit score. Rather, it’s all about the small choices you make to shape a better financial future. This doesn’t mean you shouldn’t seek out a financial advisor or planner, but ultimately the person most likely to help you set and achieve your financial goals is you.