9 Smart Financial Moves You Should Make This January
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5. Sell Your Old Stuff
There’s no time like the present to have a clear out. You’ve probably got lots of things that you don’t use that are just waiting to be turned into cold hard cash. Declutter, your closet, basement, garage etc. to find things that you can sell. List the items on eBay or Craigslist and watch the cash roll in. You’ll have plenty to put into your savings account or emergency fund.
6. Open a Roth IRA
Whether you have a retirement account or not, it’s time to up your game. Planning for retirement is one of the most important financial decisions you can make. The reason we recommend specifically getting a Roth IRA is that it’s different to other kinds of accounts. Your Roth IRA contributions and interest earnings grow tax-free, and once you are retired they are free to withdraw. This means that a Roth IRA will yield higher earnings than a 401k, despite having tax benefits during your working life.
For a simple explanation of different retirement accounts, read Roth, Regular IRAs, and 401ks Made Easy.
7. Stop Living Above Your Means
It doesn’t matter how much you earn, many of us are still living well above our means. Even when we spend on something small it still adds up to a stream of overspending. In order to get your finances together, it’s important to create a budget. Work out how much you earn, and how much you can afford to save and spend, instead of just buying lots of things and hoping your bank account isn’t suffering.
8. Learn How to Do Basic Home Maintenance
Sometimes home and car repairs are unavoidable and can cost a lot if you aren’t prepared. Despite having your emergency fund when situations like this arise, you can also learn basic maintenance to help you save money.
These days, you can learn just about anything from YouTube or books. From changing your car oil to simple plumbing problems, all the information is out there and you can access it for free. Taking the time to watch a 10-minute video could save you hundreds of dollars next time your toilet refuses to flush.
9. Make Sure You Are Getting the Best Auto Insurance Deal
It’s easy to sign up for car insurance and have the monthly payments leave your bank automatically. But, just because you don’t have to think about it, it doesn’t mean that you are getting the best deal. There are two major life changes that can lower your car insurance premiums, including turning 25 and getting married.
Men usually have as high insurance rates as teenagers until they turn 25, so it’s worth looking for a better car insurance deal once you turn 25. Additionally, after your married, your rates become lower as you are seen as a more responsible person who will drive safer. Contact your car insurance company in these instances as they won’t automatically lower your rates, or switch if you find a better deal elsewhere.
