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MINNEAPOLIS — 2023 was full of ups like inflation Credit card interest rates also hit record highs. There were also downsides, such as shrinking wallets and reduced savings.
Everyone’s financial goals are different, but money is a concern for many Minnesotans.
“I’m trying to save,” said Jordan Curry of south Minneapolis.
“To me, budgeting is scary. That’s the problem. Inflation is really bad, but part of it is accountability,” said Jay Kollenberg of Minneapolis.
According to research from Allianz, 48% of Americans say they are likely to make and maintain a resolution to better manage their money or increase their savings by 2024.
read more: Some buyers are looking at a 1% reduction in their mortgage, but is it worth it?
Now is the time to take a fresh look at your finances.
Brian Eder, founder and partner at Voyage Wealth Architects, says, “Instead of judging what did or didn’t happen, use this time to reflect on what you can learn and apply in the future. Please think positively.”
Eider says that while it’s never been easier to track where your money is going, it’s also easier than ever to spend it.
“Although tedious, one of the most helpful things for our clients, who come from all walks of life, is that they just download the transactions and have to review and execute them one by one. We broke it down into categories,” Eder said.
If you are serious about budgeting, try going all in cash.
“You literally take out a pile of cash for the month and make do with it. When you have to hand over that cash at the register, it really changes how you think about that purchase. Every time you do this, you probably get three You’ll get paid a fraction of the cost. You’ll spend 40% less in one month,” Eder explained.
read more: Minnesota’s minimum wage rate will increase in 2024: Here’s what you need to know
Curry switched to cash and the 100-day envelope challenge to save more money.
“Every time you get cash, let’s say you have $50, you put $5 into a $5 envelope, then put $10 into a $10 envelope, and save money.” Curry said.
The third strategy is to review your insurance policy and understand your costs.
“What is the deductible? What are the limits? If you’re not sure, it’s okay to contact your agent and request a review meeting or go find an agent who can help you,” Eder said. .
No matter what you do to get on the right path financially this year, Eder says it comes down to one thing.
“Learn to live within your means. I think this is the best advice anyone can give,” Eder said.
Eder says there are some common mistakes to avoid when trying to improve your personal finances.
Two big problems are setting unrealistic goals or forgetting about them.
And for investors, it doesn’t take advantage of IRS restrictions on 401K and profit sharing plans.
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