From high levels of inflation to historically high interest rates, the promise of a new year offers financial hope for many families. How can you regain financial traction in 2024? We have explored a few ways to save on groceries, create a solid monthly budget, and effectively save for retirement. Now, let’s delve a little deeper with these five methods to take your personal savings to the next level.
Avoid Debt for the Holidays
According to usatoday.com, credit card debt has shot up by $154 billion in Q3, marking its biggest jump on record dating back to 1999. With higher inflation levels, it can be more difficult to get everything you need for the holidays. Do what you can to keep this year’s holiday expenses within a reasonable budget. Dragging debt into the new year will only slow your savings progress.
Finding it difficult to stay within your holiday budget this year? You are certainly not alone. Usatoday.com suggests many Americans have exhausted their savings and are borrowing more this season. Consider getting creative with gifts, purchasing stocking stuffers or teachers’ gifts in bulk or using coupon apps to stay on track.
Try a High-Yield Savings Account
In an environment with higher interest rates, more Americans are exploring high-yield savings accounts. A high-yield savings account is a federally-insured savings product that earns higher-than-average savings rates.
The Federal Deposit Insurance Corporation (FDIC) reports the national average savings account rate is .46% as of November 2023. High-yield saving accounts can offer even higher annual percentage yields (APY), to the tune of more than 5%. In an environment with higher interest rates, APY will continue to rise and fall along with the interest rate benchmarks. Exploring a few different options could earn you significantly more on your savings account than a traditional bank or credit union.
This brings us to automation. Sometimes all it takes is a little automation to get the savings ball rolling. Streamline your savings process by designating a set amount each month to directly transfer to savings. This prioritizes your savings goals and helps with consistency. It can be easy to push off savings until next month, but consistent, automated growth could aid in growth without much thought.
Execute a “No Spend” Weekend
What’s better than a new year with new goals? Once all of the hustle and bustle of the holidays has come to a close, consider trying a “No Spend” weekend. Take your savings from typical food and entertainment costs and toss it into your savings account to start the year off strong.
Review 2024 Financial Game Plan
A new year is a great time to evaluate your goals and where you stand with personal finance. Evaluate your retirement goals, insurance coverage and current debt to ensure you have a gameplan that puts you in the driver’s seat. Chat with your financial advisor to ensure you are doing everything you can to win financially in 2024.
Bankers Life is Here
Bankers Life is here to help you save and thrive financially. Chat with us today to nail down your personal roadmap for financial success in 2024. Check out BankersLife.com to learn more.