You know very well you could do a million things to improve your financial situation….
But the problem with that 👉 changing a million things means you’ll basically have to change way too much about how you live.
And who really wants to do that? Not me! 😅
Today I will be sharing some powerful ways to improve your money game by 2024.. so keep reading along peeps! 👀
This post reveals 4 small things you can do in 2024 to improve your financial well-being.
In today’s edition:
- Small steps, big returns: Discover simple ways to boost your financial wellbeing.
- No more junk fees madness: Get the inside scoop on the ban on those pesky charges enforced by banks, hotels, ticket sellers, and more.
🤫 Let’s fill you in on the secret
According to Brent Weiss, the co-founder and head of financial wellness at Facet (a really cool financial planning firm), the key to financial success is all about keeping it simple.
He says, “Think small. Take it one step at a time, implement those changes gradually, and don’t worry about being perfect right away.”
He recommends focusing on just three things at a time because, hey, life happens! It’s not about revamping your whole existence, but making a few adjustments here and there to improve your financial health.
First, paint your financial picture
Let’s dive into the first step of improving your financial picture. Think of it like painting a masterpiece, but instead of using brushes and colors, we’re using numbers and dollar signs.
Before we start making a game plan, it’s important to get a snapshot of where you stand right now.
Take a moment to ask yourself some questions:
- How much money do you bring in each month?
- What are your monthly expenses?
- How much are you currently saving versus how much you’re spending?
- And let’s not forget about your assets and liabilities.
Now that you’ve got a clear picture of your finances, let’s dig a little deeper. Take a closer look at your spending patterns and break them down into two categories: needs and wants.
We’re not here to snatch away your wants and leave you with just the bare essentials. It’s all about gaining clarity and seeing where you have some wiggle room. By understanding what you truly need versus what you simply want, you can make smarter choices with your money and redirect it towards things that matter most to you.
Improving your financial situation is a journey, not a sprint. Take it step by step, and before you know it, those small changes will add up to big wins.
Make a 1% change
Now, you might be thinking, “1%? That’s it?” But trust me, those little baby steps can make a big difference in the long run. Think about it: even a small bump of one or two percentage points per year can add up to some serious moolah over time.
Let’s say you’ve decided to save for retirement, college tuition, emergencies, a down payment, or that dream vacation you’ve been drooling over. If money is a bit tight, start with a small increase in your savings contribution. For example, bumping up your retirement savings from 5% to 6% or 7% of your salary.
Why is this a genius move?
First, you’ll have more money saved up. Duh, right? But it’s true. Every little bit adds up, my friend. Second, your employer will likely match your increased contributions. It’s like getting free money! And third, your tax deductions for the year will increase because your retirement contributions are tax deferred.
So, go ahead and make that 1% change, peeps. You’ll be surprised how you won’t even notice the difference, but your savings will thank you in the long run. It’s a win-win!
Pay down that high-interest debt
Let’s talk credit card debt. It’s like a pesky mosquito that just won’t go away. And to make matters worse, interest rates this year are at record highs! Yikes 😬
But don’t let those rates scare you. You can take action to pay down your debt and get back on track.
Here’s a pro-tip: consider throwing more money at your debt than just a measly 1 or 2%. Trust me, it’ll pay off in the short and long run because too much of your hard-earned money is going towards interest costs rather than your principal.
Another option to pay down your debt while minimizing interest costs is to find a good balance transfer card with an initial 0% rate that can last up to 21 months! It’s like hitting the jackpot, but for credit cards. Just make sure to find a card with very low fees and penalties, and commit to paying off the balance before the zero-rate period ends.
A little bit of strategy can go a long way in tackling credit card debt. I’m here to support you every step of the way!
The Magic of Diversification
If you’re investing your hard-earned money, you gotta be smart about it. And that means making sure your portfolio is diversified. But unless you’re some kind of investing guru with a crystal ball, you don’t want to put all your eggs in one basket.
So, here’s the deal: make sure your investments are spread out across different types of stocks and bonds, different investing styles, and different sectors (think tech, manufacturing, healthcare… you get the gist). Of course, the exact split should depend on factors like your time horizon and risk tolerance.
Why bother with all this diversification, you ask?
Simple: the goal is to ensure positive, long-term returns on your portfolio. Because let’s face it, markets are cyclical. Sometimes they’re up, sometimes they’re down, and it’s hard to predict what’s going to happen next. But by diversifying your investments, you increase your chances of success. As the old saying goes, you’re hedging your bets.
Don’t put all your investment money in one basket. Spread it out, diversify your portfolio, and increase your chances of achieving those positive, long-term returns. 💸📈
📰 In the News:
The Biden Administration Moves to Ban ‘Junk Fees’
Let me tell you about some good news that’s music to our ears: the Biden administration is taking action against “junk fees” that banks, ticket sellers, and other companies charge, giving us back billions of dollars that we’ve been needlessly losing.
These bogus fees may seem small, but when they add up, it can cost us families a ton of money that we could’ve put towards other important expenses. Take hotel rooms, for example. You see a room advertised online for $150 per night, but by the time you go to book it, there are extra charges tacked on, like resort or service fees. It’s like, come on, just give us the full picture upfront so we can decide whether it’s worth it or not!
Enter the proposed FTC rule, which would ban misleading or hidden fees, requiring businesses to show the full price upfront and disclose whether any potential fees are refundable. The rule is still in the proposal stage, but during this 60-day period of public comment, you have the chance to support this effort and even report any hidden or misleading fees you’ve come across. Head on over to reportfraud.ftc.gov to speak your mind and help shape the final FTC rule
Let’s say goodbye to junk fees and hello to transparency!
Freebies? 👀 ✅
So today, we’ve been diving into some ways to make those small changes in our financial lives that can lead to some seriously BIG goals.
Now, I have a little something up my sleeve that I think you’re gonna love. Have you heard about my free money guide?
In this guide, I’ve packed it full of cheatsheets, templates, and all kinds of financial knowledge that can really give your FIQ (that’s Financial Intelligence Quotient) a boost.
This guide is like building a strong foundation for your financial future. It’s where you can start learning the basics, and who knows, maybe even pick up a few new tricks along the way. So go ahead and click HERE to download the guide.