The beginning of the new year is a time to start fresh. This includes improving your financial well-being for the year ahead.
As we step into a new year, becoming financially stable and improving fiscal well-being remains a top priority for many. The past couple of years have brought unforeseen challenges, making it even more crucial to fortify our financial health.
Whether you're looking to bounce back from setbacks or simply aim for a brighter future, here are four essential strategies to ensure you're financially well in 2024.
4 Tips to Be Financially Well in 2024
1. Understand Your Spending Habits
Understanding your spending habits and expenses can reveal a lot about your finances and where there is room for improvement.
Start by listing out all your monthly expenses, such as mortgage payments, car loans, utilities and groceries. From there, you need to figure out how much is left over for tackling debt, tucking into savings, or treating yourself.
If you aren’t sure where to start, there are apps to help you track expenses and manage your budget. There are even apps that can identify sneaky subscriptions and cancel them on your behalf. These tools can help you stay informed and on track toward your financial goals.
2. Reduce and Manage Debt
Interest rates continued to rise dramatically this past year. To avoid interest rates eating up your savings, focus on paying off any debt you have ASAP.
Debt is a tricky – and sometimes unpleasant – topic. Tackling your debt can feel like an impossible task, but it can be done if you plan well and stick to a budget.
Start by consolidating any credit card debt that you have. Credit card debt is one of the costliest forms of debt because of the interest rates that carry over month to month. These interest charges can add up quickly, making it hard to break free from credit card debt.
By transferring your balance to an Apple Credit Card, you can pay down your balance faster than other cards. Credit unions are regulated to never have credit card rates more than 18%, so you can be confident that your rate will never go above that threshold.
As for other forms of debt, such as auto loans, check to see if your loan has a variable interest rate. You may be able to refinance these loans to lock in rates before they go up.
3. Revisit Your Budget
The term "budget" gets thrown around a lot in the world of personal finance, but what does it actually mean to have a budget? A budget is basically a system that tells you how much you should spend on certain things and how much you should save.
Your budget will vary based on your specific needs, but most experts agree that the 50-30-20 rule is a great starting point for most people. The 50-30-20 rule is a budgeting strategy that breaks down your monthly income into three spending/saving categories:
- 50% goes toward your needs, such as mortgage payments, groceries or utilities
- 30% goes toward your wants, such as entertainment, clothes or TV subscriptions
- 20% goes towards your savings or debt payments.
This simple system can help you identify if you’re spending too much in certain categories and if there is room for improvement.
4. Stay Savvy about Saving
To make your money work for you, you need to have some form of savings.
Saving money can feel like an afterthought, but it is an essential part of being financially well. However, your savings can be a difference-maker that allows you to feel more secure in your financial future.
Think of savings as being in one of three categories: short-term, long-term and an emergency fund.
Short-term savings can fund anything from a vacation to holiday gift shopping. Long-term savings include retirement, education costs or a down payment on a home. An emergency fund is a nest egg to dip into if something unexpected happens.
Look to your budget to see where you can tuck away some money into each of these saving accounts. Plus, check out some of Apple’s Savings accounts to help you save your money wisely.
Small Changes Can Make a Big Difference
Reaching your financial goals won’t happen overnight. You will need to be dedicated, consistent and optimistic throughout your financial wellness journey.
At Apple, our mission is to improve lives and fulfill dreams. That begins with helping our members become confident in their finances and aiding them every step of the way.
If you want to learn more about how Apple can help you reach your financial goals, contact us or visit us at your local Apple FCU branch today!
*APR = Annual Percentage Rate as of 01/01/2024 only available on balance transfers made with a variable rate Visa Credit Card, excluding the Educator, Student, Credit Builder or Business Credit Card. The balance transfer APR offer is available 01/01/2024 - 03/31/2024 on balance transfers only. A 4.00% balance transfer fee during the promotional period applies. Balance transfer rates adjust to a variable APR (13.24%–18.00%) after the promotion period based on an evaluation of applicant credit; not all applicants will qualify for the lowest rate. The approved APR will apply for 12 months for every balance transfer completed within the promotional period from the first qualifying balance transfer. Existing Apple FCU Visa Credit Card and Loan balances are excluded from this promotional offer. The APR for purchases and cash advances will be disclosed at the time of credit approval. Balance Transfer promotional offers may not be used to pay down or pay off Apple FCU Loans/Credit Card balances.
1A 4.00% balance transfer fee during the promotional period applies.
