The Best Ways To Manage Your Money In The New Year

By Kristi Eckert | 6 months ago

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Money is an essential part of life. Whether you love it or you hate it, Money is an important thing to learn how to master so that you can have peace of mind when it comes to your finances. And given that the new year is upon us, makes it an ideal time to reevaluate how you manage your money and consider if you need to make any adjustments so that come the end of the year you can be in a financially healthy and stable place. 

EVALUATE WHERE YOU ARE IN YOUR CAREER

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Forbes reported that about 50% of Americans are unhappy at their current workplace, are you one of them? It is very important to check in with yourself every so often and consider if you are truly happy in your career. After all, unless you’re one of the lucky few, it is where you spend the vast majority of your waking life. Ask yourself how much are you actually making at your current place of employment. Consider things like health benefits, retirement, stock options, work-life balance, and paid time off. Your time is money and if the time you are giving away does not equal what you are getting in return then perhaps it’s the right moment to take steps to alter your career path. Smartly managing your money doesn’t always mean that you have to sacrifice your own self-worth.

However, If you do find that you want to alter your career and shift gears, it is important to make sure that you have all of your ducks in a row before you decide to jump ship at your current place of employment. Before leaving a job, you should make a plan to save at least six months of your expenses so that when you leave you can truly invest in taking time to discover what type of career is truly best for you without having to worry about how you are going to put food on the table or pay next month’s rent. 

PLAN YOUR RETIREMENT

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This is a key thing that everyone should do for their future. It’s a vital part of money management, in general. Unfortunately, it is something that many people start planning for later than is ideal. In fact, only 14% of Americans will have acquired the necessary amount of savings they need to retire by age 50. The good news is, however, is that even if you’re late to the party it doesn’t mean that you still can’t have a good time. Meaning that any time is a good time to start looking out for your future. 

If you’re younger, then looking into opening a Roth IRA is a very good way to start growing a sum of money. If you are employed with a company that offers a 401K or stock options then it’s always a good idea to enroll. Many companies will let you open a 401K beginning with as little as 1% of your paycheck before taxes, so if you were holding on opening a retirement account because you need the majority of your current cash flow to meet your expenditures, it’s likely that you’ll be able to adjust your budget to accommodate a 1% contribution. For instance, if you gross $1000 per paycheck a 1% contribution is only $10. Pivoting to accommodate that contribution is also a good lesson in money management.

Additionally, it’s become easier than ever to start investing in the stock market without the need for a financial advisor or broker. As long as you do your due diligence and research, websites and apps like Acorns, Sofi, and Robinhood all make it super simple for you to invest your money in companies that you can get behind. Sofi even offers its members exclusive tips on upcoming Initial Public Offerings (IPOs).

TALK TO YOUR SIGNIFICANT OTHER ABOUT THE FUTURE AND MAKE A PLAN

In any relationship, it’s important to have an open line of communication with your partner to ensure that you are both on the same page. And given that money mismanagement is one of the leading causes of breakups and divorces, how to properly manage your money should be an integral part of that flow of communication.  

If you are truly committed to maintaining a lasting relationship with your partner, then sit down with them and really make a plan in the coming year detailing how you will both manage money. Write down both short and long-term goals and create a detailed budget that will act as a guide to help you both achieve those goals. Not only will you both end up feeling more financially secure, but the act of working together for the betterment of the relationship as a whole will also serve to bring you two closer together and strengthen your existing bond. 

OTHER THINGS TO CONSIDER

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These suggestions on how to best manage your money are really only just scratching the surface in terms of the things that you could do to become more financially secure over the next year. Other things to consider so that you can get on the right financial track include educating yourself on cryptocurrencies and NFTs, investing in real estate, as well as to start looking at life insurance policies. It’s a new year, why not start the new you off on the right foot by getting on the ideal financial track.