Money Management

Ready to improve your finances by tackling big financial goals in 2024? You can do it. Read on for strategies that may help you reach your goals sooner. 

Before you know it, you’ll be ringing in a brand-new year. Before the final days of 2023 are here, you may want to sit down and think about what financial goals you want to tackle next year. January is the ideal time to start making significant changes, like improving your finances.

Having an entire year to focus on your goals can be exciting. But you may be looking for a way to reach your goals quickly to reap the benefits of your hard work sooner. Here are a few pointers so you can achieve your New Year’s financial goals faster.

Get comfortable following a budget

Many people fear the idea of budgeting because it sounds restrictive. But you can improve your financial situation significantly by following a budget. You will have a better idea of how you’re spending your money and may find areas of improvement. For example, you’ll be able to see your unnecessary purchases and make a plan to tighten up spending and free up more cash for your goals. You may also be able to reach your financial goals faster with this information. If you’re a budgeting newbie, consider using one of the best budgeting apps.

Break your bigger goals into smaller ones

Big financial goals can quickly become overwhelming. Breaking your goals down into smaller ones can feel much more manageable and achievable. This strategy can also help you reach your goals much faster because you’ll feel more motivated, and there will be less risk of you giving up or delaying your timeline. Give it a try if you’re feeling stuck.

Increase your income

Many people resolve to pay off debt or save more money in the new year. These are excellent goals to set for 2024. But your progress may be slow if you have minimal extra income to put toward debt payoff payments or stash in your high-yield savings account.

One way to reach these financial goals sooner is by boosting your income. When you have extra money, you can do more with it. Earning more money could be helpful, so you might consider getting a side hustle, asking for a raise, or finding a new job that pays more.

Consolidate debt

If you’re working to reach your goals quickly and your primary goal is to pay off debt, it can be beneficial to avoid further debt. Consolidating your existing debt can help you eliminate additional interest charges so you can tackle your debt faster.

If interest continues to accumulate, you’ll have more debt, and it can take much longer to pay it off. If you have credit card debt, one option is to open a balance transfer credit card and transfer your balance from an existing credit card.

These cards offer extensive introductory 0% APR periods on balance transfers, so you can take advantage of no additional interest during the promotion period. But be sure to pay your balance off before the no-interest period ends to avoid credit card interest charges.

Track your progress

Tracking your progress can help you achieve your goals more quickly. You’ll be more motivated when you can see all the hard work that you’ve done and the progress you’ve made. Financial apps can be helpful here, too. If you want to eliminate debt in 2024, using one of the best debt payoff apps is a good technique to try. You can also track your progress the old-school way by using a pen and paper to keep track of your wins. This simple strategy can make a huge difference.

Don’t give up

It’s never too late to make big changes in your life. Even if you have a lot of work to do to improve your current financial situation, it’s possible. Whether it takes six months, a year, or several years to reach your goals, you’re taking steps to improve your circumstances. Review our free personal finance resources for additional tips and guidance.

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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.The Motley Fool has a disclosure policy.

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Homeownership could be pretty expensive in 2024. Read on to see what buyers anticipate spending. 

If you’re hoping to make a home purchase in 2024, you may be well aware that home prices today are pretty elevated. Throw in the fact that mortgage lenders are charging a lot for the privilege of borrowing, and a 2024 home has the potential to be quite expensive.

In fact, the average person looking to buy a home in 2024 has a budget of $313,141, according to a recent survey by Architectural Digest. Your budget, however, may be larger or smaller, depending on the type of home you’re looking to purchase and the area you’re looking to buy in.

But either way, it’s important to establish a home-buying budget that won’t leave you struggling to keep up with your housing costs after the fact. And there’s a pretty simple formula to use in that regard.

Stick to 30% of your income

As a general rule, it’s a good idea to aim to keep your monthly housing costs to 30% or less of your take-home pay. Of course, sometimes, there has to be an exception to this rule, such as if you’re buying in a large city where home prices are exorbitant. In that case, though, you may not have the expense of a car, leaving you more leeway to spend more on housing.

But assuming you’re looking to buy in a typical market, it’s best to stick to that 30% guidance. That way, you’re less likely to run into a situation where you risk falling behind on either your housing expenses or other essential bills.

READ MORE: Mortgage Calculator

Now, when we talk about limiting your housing costs to 30% of your take-home pay or less, it’s not just your monthly mortgage payment you need to account for. Rather, that 30% limit should include all of your recurring and predictable expenses related to housing, including:

Property taxesHomeowners insuranceHomeowners association (HOA) fees, if applicable

What budget should you set for a home in 2024?

To figure out your home-buying budget, start with your take-home pay. Let’s assume that’s $6,000 a month, so 30% of that would be $1,800.

Next, let’s assume you’re not buying in an HOA but are looking at spending $2,000 a year on property taxes and $1,000 a year on homeowners insurance. That’s $250 a month you’ll need to budget for those bills, which means your mortgage payment shouldn’t exceed $1,550. From there, the amount you can afford to spend on a home will hinge on the mortgage rate you can snag and the amount of money you have for a down payment.

Let’s say you’re looking at a $250,000 home and have $50,000 for a down payment. If you lock in a 30-year mortgage at 7%, that leaves you with a monthly payment of $1,330 for principal and interest. So in this example, you’d be good to go, since we just established that you can afford to spend up to $1,550 on your monthly mortgage payment.

However, do take other expenses you face into account as well. If your child care costs are higher than usual, for example, then you may not want to spend 30% of your take-home pay on housing. Rather, you may want to limit yourself to 25%. Similarly, if you’re going back to school and will be paying tuition, you may want to stick to a lower threshold.

Ultimately, you’ll need to run your own numbers. But use that 30% guidance as a baseline to stay on the right track.

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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.The Motley Fool has a disclosure policy.

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Americans spend, on average, over $1,700 on beauty products annually. Keep reading to learn which underrated brands could help them save. 

On average, Americans spend over $1,700 annually on beauty products. For some of us, that number may be a little low. If you’re anything like me, you spend money on skincare products, trips to the hair salon, and makeup that may only be used once or twice.

What’s interesting is a LendingTree study that found 26% of Americans have opened a credit card to take advantage of specific beauty product rewards. But why do we overspend when we don’t have to? As we readjust our household budgets for 2024, we’re taking a look at some of the more affordable beauty trends available.

1. Skincare dupes

It’s clear that advertising works. Otherwise, none of us would overpay for products that only look and smell nice. According to experts, just because a product is expensive does not mean that it’s more effective than a drugstore brand. And just because a product contains rare ingredients does not mean those ingredients are superior to those found in cheaper beauty products.

Here are some of the dupes currently making waves. Dupes are products that perform the same job as the fancy brands but at a much lower price. For example:

You can pay a small fortune for a product that clears skin, but with Acure Brightening Facial Scrub, you get it all for $8. Skin is the largest organ of the human body, and when it looks good, you look good. Compare that to the $58 you would spend on a nearly identical facial scrub from MEG 21.If you’re dealing with dry skin, few companies provide relief quite as well as CeraVe. CeraVe Moisturizing Cream is meant to be used on your face and body, so there’s no need to pick up two different items. Loaded with hyaluronic acid and ceramides, it easily competes with the expensive department store brands. It will cost you a little less than $17. Or, you can go for a high-end luxury brand like Ogee. Ogee’s hyaluronic acid and ceramide-infused cream sells for $138 — for a jar containing 1/13th of the CeraVe cream.

2. Multi-purpose products

I’ve never allowed myself to calculate how much I’ve spent on different products, each with a “very important” job. But there are so many options now for one product that does the job of several, including:

Futuredew from Glossier: This one small bottle of serum replaces moisturizer by leaving skin hydrated. It can also be mixed with sunscreen or foundation for an extra glow. Or, Futuredew can be used as a highlighter to accentuate those areas of your face where the sun naturally hits. And just like the more expensive brands, it contains plant-based extracts and other deeply hydrating ingredients. Futuredew sells for $26 for a 1-ounce bottle. Two quick pumps of the serum last 12 hours.NYX Plump Right Back Plumping Serum & Primer, With Hyaluronic Acid: This single $16 serum replaces primer, moisturizer, hyaluronic acid, and any of the serums you may buy containing Vitamin E, Pro-Vitamin B5, Magnesium, or Potassium. That means you can knock several other products off your shopping list and leave more money in your checking account.

Here’s a quick list of what to look for when shopping for a multi-purpose skincare product:

If you have dry skin: You want a product with moisturizing ingredients like hyaluronic acid and glycerin.If you have oily skin: Look for products with ingredients like salicylic acid and witch hazel, both of which help control oil.If your skin is looking a little dull and you want to brighten it up: Shop for a product with Vitamin C, arbutin, and niacinamide.If you long for firmer skin: DMAE, collagen, and elastin are the three ingredients you want to see in a product.If you simply want younger-looking skin: Companies prey on our insecurities and fear of aging to sell us all kinds of products we do not need. The ingredients you need for younger-looking skin, according to science, are retinol, vitamin C, hyaluronic acid, and niacinamide.

3. Thrift store fashion

The best-dressed person I have ever known picks up much of her wardrobe at thrift stores. Granted, she knows what to look for, but she tells me that her expertise came with practice. And even though her household earns plenty of money, she sees paying full price as foolish. Instead, she finds interesting pieces of clothing, creatively pairs them, and stashes the savings away in an emergency fund for a rainy day.

Another (important) advantage of thrift-store shopping is purely environmental. Buying secondhand reduces the need for new products, which cuts down on the resources that are used in manufacturing those products. It also prevents pre-owned items from ending up in a landfill or being burned.

4. Self-care

So many of the things that help a person look their best are related to self-care. Better yet, some are free. Here are two examples:

Staying hydrated: Every part of the human body needs water, and that includes our skin. If we’re not properly hydrated, it will eventually show. According to the Cleveland Clinic, if you’re thirsty, you’re already dehydrated.Healthy sleep habits: The National Institutes of Health (NIH) tells us that we should be getting between seven and nine hours of sleep per night. If that feels impossible for you, consider speaking with your doctor about things you can do to catch more z’s.

Finally, there’s making healthy food choices. Like most societies, we Americans love our food. And eating healthy doesn’t mean never treating ourselves to something decadent. It just means reaching for the healthier option more often than not. There’s no doubt that eating healthy costs more than filling the cupboards with fun junk food, but it eventually pays off in a multitude of ways.

It’s tough to live in a commercialized world and not give in to spending more than we should. However, we’re ultimately in charge of our personal finances, from how much we put in a savings account each month to how much we’re willing to pay for pretty packaging and fancy advertisements.

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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.Dana George has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Looking to refresh your home for the holidays? Look no further than a home equity loan to help get the work done quickly. Check out how. 

It’s true what they say, that there’s no place like home for the holidays (cue cheesy Christmas music), but if you’ve been afraid to host because of the condition of your home, it may be time to consider making a change.

Refreshing your home for the holiday season isn’t a terrible idea, and although interest rates are a little higher than they have been, it’s still possible to secure a home equity loan to do just that. You’ll still likely save over putting your remodel on a credit card.

What kind of holiday projects can you do with a home equity loan?

The great thing about a home equity loan or other type of second mortgage is that you can literally spend it on anything you want. If you want to be able to deduct the interest on your taxes, though, you’ll have to use the money to improve your home in some way.

That doesn’t mean you have to rip the kitchen out and replace it (unless you really want to). You can do other smaller projects that will get your home ready for holiday hosting in no time, including the following options.

Adding hard flooring

Hosting a Christmas party is no small thing, and having solid flooring that’s easy to clean will be a welcomed update when everyone has left and you’re cleaning up the mess. Look at options like laminate ($3 to $13 per square foot), luxury vinyl plank ($3 to $10 per square foot), or, if you’ve got the budget, something even more permanent like ceramic tile ($7 to $45 per square foot) for the busy areas. (Price estimates from Angi.)

Upgrading your appliance game

Clean-up for a party of 20 is a pain, there are no two ways about it. But you can make it easier by adding appliances built for the job. In-sink dishwashers ($1,099 at Home Depot) and dishwasher drawers (starting about $1,000, and available from big-box hardware stores and online) will give you more places to put small items like plates and silverware.

Added access to beverages via a built-in wine fridge (starting at $729 at Lowe’s) or other high-capacity drink refrigerator with a see-through door (starting at $444 at Lowe’s) can free up your time serving drinks to everyone.

Introducing additional seating

Just because other families use folding tables and chairs for hosting guests doesn’t mean you have to. Adding a central bar or island with seating ($3,000 to $5,000 on average, per Angi) will give you additional hosting space, as well as places for guests to sit, so long as it’s designed properly. Even if you’re really into folding furniture, you can always use it as a serving surface.

Before you get too excited about tapping your home equity, though, make sure you check with several mortgage lenders for the best rates on your loan.

Small projects can serve you well this holiday season, but don’t sacrifice the big stuff

Small projects can go a long way to upping your hosting game this Christmas, but big projects don’t hurt anything, either, so long as you do them before or after the holidays. If you live where the weather is decent at Christmas, this winter may be the ideal time to start working on that outdoor space you’ve been dreaming of.

Can you imagine a better holiday party than one in your outdoor kitchen, warmed by a roaring fire in your outdoor fireplace? You can also expect a bit less mess and easier clean-up, since everybody is outside rather than running around inside your house.

Hey, a home equity loan unrealized is a dream undreamed, so you might as well go all out, especially if inheriting the title of holiday host for your family has been a goal of yours for a while. You can do all the decorating while your contractor is building out the ideal entertaining spaces for your clan.

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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.The Motley Fool has a disclosure policy.

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Sometimes, when you’re a working parent, you have to put your kids first. Keep reading to see how this can affect your income. 

One of the challenges of being a freelance writer is not having a steady income. My earnings could swing considerably from one month to the next if clients pull their projects or if circumstances make it so I have fewer working hours.

Of course, the benefit of being a freelance writer is that the more work I do, the more I get paid. When you’re a salaried worker and you have a tough week at the office with long hours, your paycheck doesn’t necessarily increase. When I put in more time and do more work, more money lands in my checking account.

Next year, however, I expect to earn less money than I did in 2023. And while that’s something I’m okay with, I also do need to plan for it.

Why I expect my income to take a hit

The main reason I expect my income to decrease in the new year is that my kids are involved in more activities now than when they were younger. And now that they’re a bit older, signing up for sports teams requires more of a commitment. There are multiple practices during the week and travel games that sometimes have us in the car for an hour each way to participate.

Because my kids’ activities are starting to require a bigger time commitment on my part, I expect to have fewer working hours available in the new year. And the less time I have to work, the less money I can anticipate making. It’s that simple.

A scenario I’m planning for — and am really okay with

I won’t pretend that I’m jumping for joy over the idea of earning less money in 2024. But I’m okay with it because of the reason for it.

When I had kids, I made a commitment to put them first whenever possible. And since I’m fortunate enough to have a job that gives me the flexibility to work more or less, I owe it to my kids to be there for them and allow them to pursue the activities they work really hard at.

My sixth grader, for example, gets up at 6 a.m. on his own several days a week to run before school. I’m sure he’d rather be sleeping or lounging in his bed playing video games, but instead, he gets up and hits the pavement. So if he’s going to put in that effort, how can I not take the time to drive him to his cross country meets?

My husband and I have talked about our finances and this upcoming change, and we may need to make some adjustments to our spending, depending on just how much less I end up earning. One thing we may need to do is spend less on leisure and vacations. As it is, when we go away with our kids, we tend to travel cheaply by driving instead of flying. But we may need to choose our vacation spot more carefully this year if we can’t afford to spend as much as we have in the past.

We might also need to assess our general spending and see if there’s room to cut back. It might make sense to reduce smaller expenses, like a streaming service we can do without.

RELATED: Best Budgeting Apps

Thankfully, though, my husband and I made a rule long ago that we would only take on major expenses like mortgage and car payments based on his income, since he’s the salaried worker. So I’m not worried about a reduction in my income impacting our ability to cover our essential expenses.

Balancing a fluctuating income

If you’re someone who works on a freelance basis, there may come a point when you decide to cut back for the sake of being able to use your time for another purpose. In my case, it’s being there for my kids. In your case, it might be to pursue a passion you don’t get paid for, volunteer, or help an aging family member.

Any time you anticipate a drop in income, it’s a good idea to audit your spending and see where there’s room to make cuts. But if you plan out your personal finances strategically, you may find that you’re able to absorb a hit to your income without having it wreak too much havoc.

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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.The Motley Fool has a disclosure policy.

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