2024 Newsletter — Volume 4
Start the New Year off right1
The start of a new year is an excellent opportunity to evaluate your financial habits and spending patterns. Making a few simple adjustments could bring you closer to early retirement or the financial independence you’ve been striving for. Here are some steps to help you begin the year on the right foot.
Set money goals1
Defining financial goals gives you a clearer sense of direction for your future and helps you stay focused on avoiding unnecessary spending, especially when a more meaningful objective is at stake.
Start by evaluating your current financial situation and determining what’s needed to reach your goals. Knowing how much you can set aside each month for various goals provides you with a clear path forward.
Analyze your spending1
It’s often the smaller, recurring expenses that derail financial progress, rather than large purchases. For instance, daily coffees, frequent meals out, or multiple happy hours each week can add up quickly.
Consider tracking your spending for the next month to identify any patterns.
Create a realistic budget1
A budget is a tool that helps you effectively manage your money. For a budget to be successful, try to set realistic goals for each month, quarter, and year to guide your habits without causing stress.
If you don’t have a budget in place, the 50/30/20 rule might be a helpful starting point:
- 50% on needs
- 30% on debt
- 20% for discretionary expenses
Get out of debt1
Debt can hinder financial freedom, and paying it off often leads to a greater sense of independence.
To tackle debt, aim to pay more than the minimum on any borrowed amounts, explore debt consolidation options, adjust your budget to free up funds, or seek advice from a financial professional for tailored guidance.
Slash your bills1
Rather than viewing certain expenses as fixed, approach them as negotiable. Consider these options:
- Can you switch from cable to a streaming service?
- Are there any unused subscriptions you could cancel?
- Could you save by switching phone providers?
- Is it possible to find a better rate for car insurance?
By taking the time to carefully consider your financial habits and commit to some new ones, you can make the most out of the new year!
How (and when) to increase your 401(k)
Making a small increase of 1% or 2% to your contributions to your retirement savings can make a difference when it comes time to retire.
When you contribute to a 401(k) you may be on a path to help secure your financial future. Though could you save even more? Reducing non-essential spending or allocating new income (maybe a year-end bonus or pay increase) could allow you to bump up the amount you’re saving. You might think a 1% increase makes a small difference in your paycheck—but may make a big difference down the road.
Making the most of your organization’s retirement plan now may mean greater financial security once you stop working … and a brighter financial future.
Increase contributions — a small increase can go a long way
Sign in to BenefitsForYou to take action today!