7 Important Money Moves to Make in the New Year
7 Important Money Moves to Make in the New Year, According to Financial Advisors
By Holly Johnson on 7 January 2020
It's easy to think you'll get your finances together "next year" or when you finally get the promotion you've been after. Unfortunately, time keeps on ticking away, making it easy to spend years dreaming of financial security without making progress toward your goals.
Now that 2020 has arrived, it may be the perfect time to stop making excuses and start making moves. After all, it's more than a new year — we're in a brand-new decade.
But which moves have the potential for the most impact? We interviewed several financial advisors to find out which steps they think nearly everyone could benefit from in 2020 and beyond, and here's what they said.
1. Increase your contributions to tax-advantaged retirement accounts
According to financial advisor Benjamin Brandt, who is the host of retirement podcast Retirement Starts Today, the beginning of the year is an excellent time to reevaluate how much you're putting away for retirement. Fortunately, the Internal Revenue Service (IRS) increased the maximum you can contribute to a 401(k) account in 2020, bringing up your total maximum contribution amount to $19,500.
"Could you save a little more for the future version of yourself?" he asks. "Calculate what a 1% increase in your savings rate might be, and commit to that increase."
You might not even notice the money missing from your budget when savings is increased in such small increments, but you'll never know unless you try. (See also: 5 Money Moves to Make Before You Turn 40)
2. Take stock of changes in your life that took place over the last year
Financial planner Luis F. Rosa, who is also the host of the On My Way to Wealth podcast, says that pretty much everyone should sit down and analyze any big life changes they've endured over the last year or two, including marriage, divorce, or the birth of a new child.
You should also review your beneficiary designations on your 401K, life insurance, and other accounts to make sure they are up to date as per your wishes, he says. (See also: 5 Money Moves Every Single Parent Should Make)
3. Learn To Live Within Your Means
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