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With the new year approaching, it’s the perfect time to start planning for your financial future. Here are five financial resolutions to consider in 2024.
1. Get a high-interest savings account
Currently, interest rates on savings accounts, especially high-yield online savings accounts, remain high. Some accounts offer yields of 5% or more per year, which is 10 times the national average for savings accounts. Take advantage of these “free” funds by opening a new account with a high rate or upgrading your current account. Avoid fees whenever possible and choose a bank or credit union with easy access to remote customer service or in-person.
2. Focus on student loan repayment
For many people, student loan payments will resume in 2023. If you’re feeling anxious or uncertain about how much you owe, it’s best to face the numbers head-on and see if there’s a way to reduce your payments. For example, if your income is lower than before your student loan payments were suspended, updating your income in the student loan portal may change your repayment amount based on your income. If you’re on an income-driven repayment plan, there are other ways you can reduce your payments. If you have retirement savings, you may want to consider saving some money as a way to reduce your student loan payments.
“Putting money away in a pre-tax retirement account reduces your taxable income for the year,” says Jen, a certified financial counselor and founder of Brooklyn, New York-based firm Fully Funded.・Mr. Mayer says. “The proportion of income-related repayments will be lower.”
3. Improve your financial knowledge and set some goals
Although personal finance is not a standard part of American education, there are many ways to learn more about budgeting, saving, and investing. Whether you’re browsing reputable sites online, checking out finance books at the library, or consulting with a certified financial planner or other qualified professional, you’re trying to pass on your financial know-how. There are many people who are.
As you learn more about personal finance, you may find inspiration to set your own financial goals. Perhaps you’re looking to retire early, save for a down payment on a home, or build a healthy emergency fund. Once you’ve defined your goals, you can determine how much money you need and set a schedule to save it.
4. Try using AI in finance
In 2023, artificial intelligence chatbots such as ChatGPT and Bard have become popular tools for research and advice. In 2024, you will be able to experiment with using them in your finances. You can give the bot specific prompts, such as “My salary is $50,000 and I want to save $5,000 by the end of the year. What should I do?” We’ll also do the math to figure out what you need to save and suggest ways to cut various expenses.
You can also tell your chatbot to find great deals on groceries, school supplies, gifts, and more. Keep in mind that AI obtains information from a variety of sources, and those sources are not necessarily accurate. Always double-check the information you receive by doing your own calculations, checking with an expert, or visiting a trusted website for more information.
5. Set up recurring donations to your nonprofit
Recurring donations provide nonprofits with reliable income and make budget planning easier. If you’re interested in setting up recurring donations to a specific nonprofit, there are several ways to do this.
Check with your employer to see if they will match your contributions and if they have an online portal to do so. This is an easy way to go further with your donation.
Individual donations can usually be made through a nonprofit’s website, but personal finance expert and Heal founder Shavon Roman says: plan. Invest. says there’s a way to make it even easier.
“Most charities make their information publicly available so you can send donations from your bank account or donate through Zelle,” Roman said. “You can automatically transfer a certain amount on a regular basis, and it’s in a system that you can control. During tax season, you can also see exactly how much you’ve donated when you want to claim a tax deduction. can.”
Before making a donation, it’s a good idea to search the organization on the Internet to make sure it’s a 501(c)(3) organization. These organizations are considered tax-exempt by the U.S. government, so you can deduct these donations when you pay your taxes.
This column was provided to The Associated Press by the personal finance website NerdWallet. Chanel Bessette is a writer for NerdWallet. Email: cbessette@nerdwallet.com. Twitter:@crbessette.
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