New Year's Resolutions for Your Financial Well-Being
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At the turn of the new year, many people look to make significant, positive changes in their lives. Some try to pick up new habits, while others try to squash old ones. Not only is the new year a great time to improve your physical health, but it also serves as the opportune time to focus on your financial well-being. Here are a few financially focused New Year resolutions you can adopt as we head into 2024.
Make a Budget
Spending less than you earn — a common personal finance rule — may seem straightforward but can prove to be challenging if you aren’t tracking your spending. That's where a budget comes in. By looking at how you spend on a monthly, or even weekly basis, you can identify areas to cut back on. Even something as small as canceling a subscription service or scaling back on how often you order takeout can help you save for the future, especially when it comes to buying a home or preparing for retirement.
While a budget will help you today, you can also work towards building a more secure future by investing some of your money into your retirement. For 2024, the annual IRA contribution limit is $7000 or $583 per month. Even a smaller contribution of just a couple hundred dollars per month can add up over time due to the power of compounding interest. Check out Ascend’s retirement calculators to estimate the monthly income your retirement savings will provide.
Save for Big Purchases
If there’s a big-ticket item you’ve been wanting for some time, like a new phone or TV, consider saving up for it over time rather than putting it on a credit card or dipping into your emergency savings. This disciplined approach will allow you to enjoy your new purchase without the stress of looming debt.
With the holidays just behind us, many are reeling from the strain it put on their wallets and bank accounts. A great way to avoid that stress for the coming year is to start saving for the holidays now. With a Christmas Club account, you can save for the holidays stress-free. Once the holiday season rolls back around in 2024, you’ll be thanking yourself!
Large monthly debt payments can drain your income and keep you from ever getting ahead. A large debt bill can make your financial goals exponentially harder to achieve. Furthermore, long-term debt can ruin your credit and hurt your chances of enjoying a long, happy retirement.
Make a resolution this year to live within your means and borrow responsibly. If you’ve got multiple sources of debt, consider consolidating it. While a mountain of debt may seem insurmountable, once you’ve paid it off, it makes all other financial goals much easier to achieve.
As you head into the new year armed with these financial resolutions, remember that small, consistent efforts today can yield substantial benefits for your future. No matter where you are on your financial journey or what your goals are, Ascend is here to help! Visit any of our 27 Middle Tennessee locations, schedule an appointment online to meet with an Ascend representative, or give us a call at 800–342–3086.