With a new year comes new resolutions. These should not be limited to your health and your eating habits. They should also involve your money habits.
Even if it’s not the best thing to hear, money is closely tied to how we feel about ourselves. With that line of reasoning, better financing is very similar to going to gym and working on your fitness.
It just makes for a better overall outlook. So maybe 2019 is the year that you up your savings to lighten your steps and make you sleep more soundly.
Use the following tips to ensure that your year turns out to be a good one.
Automate your savings
Automating everything makes saving a lot easier. Here are some things you should start automating right away:
- Contributions to your 401(k) taken from your salary (pre-tax)
- Transfers from your checking account into your savings account
- Transfers from your checking account or savings account into your investments account, IRA or Roth IRA
This way, you won’t even have to think about doing it because it’s already done for you.
Check your bank’s annual percentage yield (APY)
Make sure that your savings account is earning a competitive APY. If not, then your money is just sitting there and not compounding as much as it should.
These days, you could get a savings account that has more than 2% APY. If you’re not taking advantage of this, you’re missing out on some real gains.
You also have to be mindful of your checking account. If you keep going under the required minimum balance, you could be paying for monthly maintenance fees. Those fees do add up, you know.
So do your best to avoid that by having a checking account that has a lower minimum balance or by automating a direct deposit into that account.