Money Management

I made some smart money moves in 2023. Learn how you can find success in 2024 by following in my footsteps. 

With the year 2023 drawn to a close and 2024 getting underway, it’s a good time to look back at personal finance moves I made over the course of the year so I can see what worked for me — and what didn’t.

Fortunately, last year was a pretty good year in terms of my finances, as I made three smart money moves that ended up paying off. Here were the best things I did with my money over the course of the last year that I think will benefit me for a long time to come. Maybe seeing what I did will inspire you to do the same in 2024.

I increased my retirement account contributions

The first big thing I did in 2023 was to increase the amount I was contributing to my retirement accounts. I made the decision to do this because my income went up and I wanted to make sure that I was investing enough of my current earnings in my brokerage account to help me have a more secure future.

I decided to increase my retirement account contributions by a total of $4,000 last year, so I increased the automatic contributions I was making to my account by $334 per month. If I stick with this — and I plan to — the extra $334 I’m investing every month from now until retirement (in about 25 years) could leave me with a nest egg that’s around $432,000 bigger than it otherwise would have been. This is assuming I can earn an average return of 10% every year (in line with the stock market’s past performance).

If you aren’t already contributing 15% to 20% of your income to your retirement account contributions, or if your income has gone up and you haven’t compensated for that in your investing, you should seriously think about upping your own retirement investing goals for 2024.

I automated contributions to my savings account so I could pay for a home renovation in cash

I was planning a big home renovation toward the end of last year for a new home I was purchasing. I didn’t want to borrow for the upgrades, especially since I was already taking out a mortgage on the property, so I wanted to save enough to pay cash to my contractor.

I figured out the amount I needed to save, opened up a dedicated savings account, and transferred money automatically from my checking account to my savings account every month. Fortunately, I ended up accomplishing my goal, and renovations on the house are underway.

If you have any short-term goals, whether it’s home upgrades or another big purchase, figure out how much you need to cover the costs on your desired timeline. Set up automatic contributions to a savings account to fulfill your goal, and use a dedicated account so you can easily track your progress and be sure you’re on schedule.

I shopped around for a mortgage loan

Finally, the last good financial move I made last year was shopping around for a mortgage loan instead of just accepting the first offer I got from my bank. The difference between my best and worst rate was 1.61%, so by comparing quotes, I ended up saving $86 per month per $100,000 I borrowed — and saving $31,193 in interest per $100,000 borrowed over the life of the loan.

If you are doing any major borrowing, whether it is a mortgage or a car loan, you should make sure you shop around for the best deal as well. It’s easy to do, and the savings is worth it.

By making these three money moves last year, I’ve improved my financial situation for the long term. My retirement is more secure, my housing payment is more affordable, and my home will be a lot prettier in the end once the renovation is done and I’m not paying loan bills to afford it.

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You’re early to the Bitcoin spot ETF party — what now? Find out what part of the hype is worth buying into. 

Bitcoin just got easier. That’s a relief to everyone who wants to dabble without outright owning the cryptocurrency. You can now buy Bitcoin like you can a Vanguard ETF, easy peasy. All it takes is access to one of the 11 brokerages offering a spot Bitcoin ETF.

Does that sound oddly specific? It should. As of Jan. 10, 2024, the SEC approved 11 spot Bitcoin ETFs, the first of their kind in the United States. Big news for American investors.

This whole Bitcoin ETF thing is brand spanking new. As of this article’s publication, none of the approved SEC-blessed ETFs are even active yet. In other words, you, reader, are ridiculously early to the party. The question is, are you one of the first miners to arrive at the forefront of a very lucrative gold rush? Or are you the canary in the coal mine, doomed to be among the first to lose their savings?

A new, easy way to invest in Bitcoin is here. But should you bite? Expectations are high, but these shiny new ETFs aren’t for everyone. Here’s what you should consider buying.

Buy Bitcoin ETF shares if you think Bitcoin will outperform

Bitcoin spot ETFs track the price of Bitcoin. The better Bitcoin does, the better the ETF does. So only buy shares of a Bitcoin ETF if you expect the underlying asset to perform well.

Global investment firm Van Eck expects the Bitcoin ETFs to perform well because of the 2024 Bitcoin halving and new regulations. ARK Invest analysts claim spot Bitcoin ETF approvals may be “the biggest catalyst for institutional adoption BTC has ever seen.”

Either could boost Bitcoin ETF prices into 2024. But nobody knows exactly how Bitcoin will perform going forward. It may take years before corporations feel comfortable buying Bitcoin — if ever.

Treat the Bitcoin spot ETF like you would any other security. The less certain you are of BItcoin’s performance, the smaller portion of a share you should consider taking.

Nothing about the underlying asset has changed. Bitcoin remains as it always has. What has changed is the SEC’s official stance on spot Bitcoin ETFs. Namely, they’re legal. Now that the SEC has approved the ETFs, they’ll be hard-pressed to punish folks for investing in them.

Buying a Bitcoin spot ETF vs. owning Bitcoin

There are pros and cons to buying Bitcoin via a spot Bitcoin ETF versus owning the coin outright.

The risk of purchasing a Bitcoin ETF is twofold: Bitcoin could underperform, which would be bad for your investment portfolio; ETF management fees could eat into your returns. Plus, you don’t get the flexibility that comes with owning Bitcoin outright. You can’t trade or send it.

However, the benefits may be worth the risks. You don’t have to worry about someone hacking into your crypto wallet and stealing your Bitcoin — you’re SIPC insured. Nor do you need to keep track of self-custody keys or hardware. Finally, the SEC has blessed your investment.

In a world where regulators are waging war against crypto companies, that’s a perk, to be sure. Of course, all that assumes you’re okay with holding a volatile asset. Bitcoin has performed great in the past, but it’s plunged many times.

Before you buy Bitcoin, be sure you’re okay with holding a high-risk asset. Stabler alternatives include certificates of deposits (CDs) and high-yield savings accounts. If you plan on selling your assets short-term (hello, retirees), Bitcoin does not deserve a large place in your portfolio.

Should you buy into a spot Bitcoin ETF early?

If you’re buying into a spot Bitcoin ETF, ask yourself whether you 1. Believe in Bitcoin, and 2. Are okay with paying management fees. If so, it may be worth adding shares to your portfolio.

I already own Bitcoin through Robinhood. I don’t plan on purchasing an ETF for that reason. I’m betting the SEC won’t draft rules that make owning Bitcoin outright unprofitable. So far, buying and holding Bitcoin has been easy (I buy the currency through Robinhood). More to the point, I’m not on the hook for ETF fees. I’m comfortable with that level of risk.

My Bitcoin strategy remains as it was before the ETF release: Buy when I can (within reason) as part of a long-term, diversified investment portfolio.

It’s totally okay to wait for the hype to pass before boarding the boring ol’ Bitcoin train. Boring is excellent for cooling heads. And it’s perfectly okay not to purchase Bitcoin at all. If your risk tolerance is low, a spot Bitcoin ETF may have no place in your portfolio.

On the fence? Check out five questions to consider before buying crypto in 2024 to set yourself up for success. (Seriously, skip the hype!)

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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Stop procrastinating fast. Here are three ways to overcome procrastination inspired by the No. 1 New York Times bestseller Atomic Habits. 

Winter blues are coming on strong this year. It’s the season to loaf around, or so my brain is telling me. If I were a bear, I’d be deep in hibernation, wallowing among baked goods and unwrapped Christmas gifts, dreaming of an easy-breezy 2024.

Doing anything productive, it seems, is an uphill battle.

Struggling to work? You’re far from the only person struggling to get their butt into the office. One 2017 study by Redbooth found that winter is the least productive season on average, with January as the least productive month of the year. It’s a whole thing.

This is your gentle reminder that taking a vacation is okay, but procrastination typically leaves you feeling stressed and anxious. Thankfully, it’s fixable. Here are three ways to stop procrastinating after winter vacation, inspired by the NYT bestseller Atomic Habits.

1. Follow the two-minute rule

This one trick has gotten several articles published, including this one. It’s simple. When I want to write an article, but I feel like staying in bed, I’ll tell myself just to take a quick peek at the assignment. I commit to working on it for two minutes. Then I’ll quit, if I feel like it.

I rarely feel like quitting once I’ve hit the two-minute mark. Hours will fly by before I emerge, blinking, from my writerly trance. I’ll wonder how the heck I’ve gotten so much done.

James Clear, author of Atomic Habits, calls this the two-minute rule. Clear suggests that if a habit can be done in less than two minutes, you should do it immediately. This helps in overcoming procrastination and building momentum.

2. Reward yourself with something nice

It’s shockingly easy to bribe myself into being productive. Typically, I do so by cracking open a Peach Mango Celsius can. The Pavlovian hiss of escaping air drags my fingers to my writer’s desk faster than the promise of money in my bank account.

Coffee, tea, or a snack can work just as well. So long as you reward yourself with something nice immediately, you can feel good long enough to overcome the tallest hurdle: getting started.

James Clear calls this temptation bundling, pairing a task with something you enjoy. Instant gratification is a powerful motivator. In the short term, you can bribe yourself with whatever’s on hand to stop procrastinating. In the long term, you can use this to form good, sticky habits.

3. Sit somewhere else

When the two-minute rule fails — when not even the crackle-snap-pop of Celsius can get my creative juices flowing — I pack up my belongings. Laptop in hand, I journey to a far-off land, one commonly known as the living room. There, I sip my drink and get to work.

Sounds weird, but sometimes, moving my workplace from one room to another gets my fingers moving. I’ve also gone to cafes and bookstores with similar results.

James Clear calls this choice architecture. Sometimes, your environment holds you back. One way to overcome this is by changing locations. If you’re feeling unproductive, go somewhere you’ll be surrounded by productive-seeming people. It could kill procrastination dead.

Knocking out those 2024 resolutions

New year, new you. Some healthy habits can get you moving toward your goals, whether you’re paying off debt or putting money toward that vacation fund.

I’ve been through this song and dance before. Sometimes, I succeed. Often, I don’t. The key is to be gentle with myself. Taking it one step at a time has helped me actually stick with the habits I’m trying to create — in 2024, I’m improving my personal finances.

Feel free to take two minutes to do something productive right now. Fill out that form, schedule that meeting, or send that text. You’ll be building momentum before you know it.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
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