5 Things You Forgot To Do With Your Money in 2023 (and How to Do Them in 2024)
Written by
Jennifer Taylor
Edited by
Sequoya Davis
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It’s never too late to change your money habits. If you ended 2023 with financial regrets, it’s time to turn those mistakes into powerful money resolutions.
Maybe you feel guilty about spending too much or saving too little. Regardless, there’s no time like the present to change your habits for the better.
In fact, feeling like you didn’t meet your financial goals last year might serve as extra inspiration to work harder to achieve them in 2024. Here’s a look at some smart money moves you might’ve forgotten to make last year — and how you can do them this year.
1. Stick to a Budget
Chances are, the concept of budgeting isn’t new to you. Maybe you currently have a budget you’ve been letting slide, or perhaps you’ve had one in the past, but ultimately abandoned it.
No matter your financial situation, creating a budget and sticking to it is always a good idea. To make this happen, you need to make a budget that’s realistic for both your finances and lifestyle.
Start by taking stock of where your money is going each month and how much you have left after paying all your bills. Use this to set financial goals and monthly spending limits.
Consider trying to abide by a popular budgeting technique, such as a zero-based budget, the envelope system or a 50/30/20 general budget. This can give you the structure needed to start budgeting and keep doing it.
2. Add an Annuity to Your Portfolio
Often used as a way to increase your retirement savings, an annuity is a contract with an insurance company that offers a lump-sum payout or a set payout over a specific time period. Annuities are sold by banks, brokerage firms and mutual fund companies.
Payouts can start immediately or at a defined start time in the future. It’s essentially a salary you’ll receive in retirement. You can earn interest on your funds, allowing you to increase the size of your initial investment.
For example, Gainbridge’s FastBreak™ Annuity offers an up to APY* — much higher than most banks. Plus, this rate is locked in for your entire investment term, spanning three to 10 years.
Invest anywhere from $1,000 to $1 million, then sit back and watch your money grow. Additionally, you can withdraw — without tax penalty before age 59 and a half — up to 10% of your account value each year.
3. Build an Emergency Fund
If you don’t currently have an emergency fund, it’s time to start building one. Generally speaking, experts recommend having three to six months of living expenses in your emergency fund.
However, if the idea of saving that much feels so out of reach that it deters your efforts, you can start slowly. For example, aim to save $1,000, then keep going from there.
This is crucial — especially if you’re currently living paycheck-to-paycheck — because you need money on hand for unplanned expenses. For example, if you lose your job, your car needs a pricey repair or your hot water heater breaks, you may be forced to put these bills on a credit card or take out a loan.
If you have an emergency fund, this is a nonissue, because the money is there when you need it. This can allow you to keep living comfortably, despite incurring a pricey unexpected expense.
4. Max Out Your Retirement Contributions
Retirement is supposed to be filled with relaxation. Therefore, you need to save as much as possible now, so your golden years aren’t filled with money woes.
In 2024, the contribution limit is $23,000 for 401(k), 403(b) and most 457 plans — up from $22,500 last year. The 2024 limit on annual IRA contributions is now $7,000 for people under age 50 and $8,000 for those 50 and older. In 2023, those same limits were $6,500 and $8,000, respectively.
Try to reach these limits, if possible. If you can’t get all the way, do your best to get as close as possible.
Automating your contributions can help ensure you reach your monthly — or per-paycheck — retirement savings goals. This eliminates any temptation to use the money elsewhere.
5. Automate Your Savings
Retirement isn’t the only type of savings that can benefit from automation. If you had trouble finding extra money to put into savings at the end of each month last year, consider automating your contributions.
Designate a set amount to be sent to savings each month or from every paycheck. You can always contribute extra at the end of the month, if you have money left over, but this ensures saving money won’t go by the wayside.
You might miss the extra spending money at first, but after a few months, you probably won’t think twice about it. Prepare to be proud at the end of the year when you look back at how much your savings account balance has grown.
Changing your money habits isn’t always easy, but you can do it. Now is the time to create a plan for the rest of 2024, then get to work on your new financial goals.
*Annuity rates are subject to change at any time, and the rate mentioned may no longer be current. Please visit Gainbridge.io for current rates, full product disclosures and disclaimer. Withdrawals above the 10% free withdrawal amount subject to a withdrawal charge and market-value adjustment. FastBreak™ is issued by Gainbridge Life Insurance Company in Zionsville, Indiana. FastBreak™ is not a tax-deferred annuity; instead, it is taxed annually.
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