14 Money Moves You Will Be Thankful For

14 Money Moves You Will Be Thankful For

Keep your financial goals on track by tackling these tasks.

By Maryalene LaPonsie

Take these steps to improve your finances now.

There is no time like the present to start improving your finances. “Procrastination is the No. 1 reason people fail in retirement,” says Luke Lloyd, wealth advisor and investment strategist with Strategic Wealth Partners in Independence, Ohio.

However, it’s not just your retirement that will benefit from being proactive about finances. You can save money on debt, eliminate headaches for your heirs and free up cash for the things you want by making the following 14 expert-backed money moves.

Budget For Future Expenses.

A budget is at the foundation of good personal finance, and if you don’t have one already, it should be your first priority. Don’t just plan for regular monthly expenses either. Rather, look at the big picture. “If we have any debt, have we done anything to manage that?” asks Aaron Bell, a wealth management advisor with Northwestern Mutual in New York City.

In addition to extra debt payments, plan for quarterly and annual expenses such as insurance premiums, vacations and holiday spending. Track your spending by using an app like Mint or PocketGuard. When you hit the budgeted limit for each category, stop buying.

Max Out Your 401(K) Match.

If your employer offers a 401(k) plan, you should contribute as much as possible. Traditional 401(k) plans offer an immediate tax deduction on contributions while Roth 401(k) plans will let you take out money tax-free in retirement. In 2020, the contribution limit to a 401(k) account is $19,500.

Many employers will match a portion of worker contributions, up to a certain amount. “I’m surprised in my practice how many people don’t even put in their 401(k) what their employer matches,” says Steve Azoury, financial representative and owner of Azoury Financial in Troy, Michigan. If you aren't sure how much to contribute to a 401(k), make sure you're at least depositing enough to get the maximum employer match.

Consider Refinancing Your Home Equity Loan.

In the past, homeowners could deduct the interest on home equity loans on their federal income tax return. However, the tax code changes enacted in the Tax Cuts and Jobs Act of 2017 eliminated that deduction for many people. To keep deducting the interest, you could refinance your main mortgage and roll in the balance of the home equity loan. 

Even if you don’t have a home equity loan, it may make sense to refinance a mortgage right now. “We are in a historically low interest rate environment,” Lloyd says. To minimize the costs associated with refinancing, see if your current lender offers any streamline options that may waive or reduce fees.

Keep Your Home Equity Loan Deduction.

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