Financial Fresh Start: Crafting Smart Banking Resolutions for the New Year
Did you know that nearly half of Americans make finance-related New Year’s resolutions? Whether you are trying to pay down debt or build your child’s college fund, some of the most common New Year’s resolutions trace back to financial roots.
With only a few weeks before ringing in the New Year, now is the perfect time to solidify your banking resolutions. In this article, we’ll discuss how you can set yourself up for a financial fresh start with these four smart banking resolutions.
Build an Emergency Fund
Life is unpredictable. Your AC could go out in the middle of summer, or you might face an unexpected layoff. Whatever the case, life can get expensive and quickly. This is why it’s a smart financial decision to build an emergency fund.
When it comes to determining the minimum amount you should have in your emergency fund, add up six months’ worth of non-negotiable expenses. This includes your housing bills, loan payments, utilities, and groceries. Then, figure out how much you should contribute each month to reach your goal.
Maximize Interest Income
Another smart banking resolution is to maximize your interest income. Many Americans hold excess cash in a generic savings account, which usually accumulates less than 1% of interest. On the contrary, money market accounts and high-yield savings accounts open the door to more interest-earning potential, upwards of 2%.
If you don’t already have one of these accounts, consider opening one in the new year. Certificates of Deposit are also a great option if you won’t need the cash in the near future. Check out Texas Republic Bank’s current interest rates and account offerings to see what’s best for your situation.
Interest rates are finally starting to fall, with the Federal Reserve predicting three more rate decreases in 2024. This means that 2024 might be the time to refinance loans. Refinancing lowers your monthly payment, freeing up more cash to spend in other areas of your finances, like saving for your emergency fund.
Determining the new interest rate that you qualify for is dependent on your existing loans and other factors. Reach out to a team member at Texas Republic Bank to go over your refinancing options.
Invest for the Future
Investing for the future is an important smart banking resolution to make in 2024. With the stock market generating a 10% average return on investment, this is a great place to park your money for retirement and long-term goals.
Can you free up an extra $50 or $100 each month to contribute to a Roth IRA or general trading account? You don’t need to have thousands of dollars to get started investing. Every dollar matters and can help you comfortably afford retirement.
What are your smart banking resolutions for 2024? Do they include starting an emergency fund? How about switching savings accounts or refinancing your home? Whatever smart banking resolutions you choose to pursue, Texas Republic Bank is there for you every step of the way. Reach out to one of our team members to see how we can help you reach your financial New Year’s resolutions.
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