Money Management

Here comes a new year! Keep reading to learn the best options to grow your money and keep it safe in 2024. 

You’re likely occupied with a lot right now, such as finishing work projects before the holiday break, buying gifts for your favorite people, and deciding on a New Year’s resolution. Far be it for me to add more to your plate, but have you given any thought to your finances for next year? If you haven’t, you should. Here are five excellent places to put your money in 2024.

1. Debt payoff

If you have high-interest debt (such as that on a credit card), you’re in a bad position these days — but certainly not alone. The Ascent’s research team found that as of the second quarter of 2023, the average American had $6,365 in credit card debt. It’s never a good time to be carrying high-interest debt, but thanks to the higher federal funds rate (hiked to cope with inflation in 2022 and 2023), we’re seeing even higher APRs on credit cards. So the more debt you’ve got, the more expensive it is. While credit card debt may get cheaper in 2024, if the Federal Reserve lowers rates (this will not directly lower credit card APRs, but we could see lower ones as a result), it’s not a guarantee.

It’s best to make paying off your debt a priority in 2024. If you approach it with a plan, you’re likely to find more success. Consider snowballing your debt payoff (start by paying extra toward your smallest balance), as doing so will help motivate you. Another option is a debt consolidation loan, which gives you the perks of a lower interest rate, a set payoff timeline, and just one combined debt bill to pay each month instead of multiple.

2. An emergency fund

One way to give yourself more peace of mind is to save money for unplanned expenses. The typical recommendation for an emergency fund is to save three to six months’ worth of bills, because this amount gives you money to fall back on if you lose your job. It also gives you cash to pay for a home repair or a medical bill that your insurance doesn’t cover in full. If you’re currently lacking emergency savings, hop on it for 2024. The best place to keep your emergency fund is either a high-yield savings account or a money market account. Online savings accounts in particular are paying high APYs right now, thanks to lower bank overhead costs and the aforementioned higher federal funds rate. You’ll get a high APY with one of the best money market accounts, too, as well as easier access to your cash — many of these accounts come with checks or a debit card.

3. A 401(k) or a traditional IRA

If you work for an employer that offers a 401(k) plan, you should take advantage of that in 2024 if you haven’t yet. This is especially true if your employer also matches a portion of your contributions. Let’s say you’re eligible for a 3% match — if you contribute 3% of your salary, and your employer adds another 3%, that’s free money, and definitely worth getting. Every dollar you can save toward retirement now is a dollar that can grow thanks to investment returns and the power of compound interest.

Plus, traditional 401(k)s (and IRAs, too) are funded with pre-tax dollars, so you can shield some of your income from being taxed in the year you earn it. 401(k)s have higher contribution limits than IRAs — $23,000 in 2024. If you’re 50 or over, you can tack an extra $7,500 on top of that.

If you don’t have access to an employer-sponsored retirement plan, it doesn’t mean you’re out of luck. It just means you can open an IRA account on your own. IRAs also offer a great variety of possible investment options, making them an attractive prospect.

4. A Roth IRA

If you’ve already got a traditional IRA or 401(k), you might wonder why you might also want a Roth IRA. You are allowed to have both, and doing so gives you the chance to diversify your retirement savings. Roth IRAs and traditional IRAs are subject to contribution limits that are on the lower side; if you’re under age 50, you can contribute up to $7,000 across all IRAs in 2024 (add $1,000 if you’re 50 or over).

Roth IRAs function differently than traditional retirement accounts. You can withdraw your contributions without penalty before retirement age, and they’re funded with post-tax dollars. This means you’re paying taxes on that money now, rather than in retirement. And Roth IRAs don’t have required minimum distributions (RMDs), which means you won’t be penalized for leaving that money in the account past a certain age.

5. A new checking account

Finally, consider opening a new checking account in 2024 if your current one isn’t quite working for you anymore. With the rise of online banks, it’s now possible to find a great checking account that charges no maintenance fees — and some banks have even done away with overdraft fees, too! Plus, the best checking accounts are offered by banks that prioritize technology. With a mobile banking app, you can move money around from anywhere — imagine moving your banking activities into the 21st century.

The start of a new year means a new chance to get better with money. Use the above strategies and financial accounts to make 2024 your best year yet.

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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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On a holiday shopping budget? Costco to the rescue! Read on for some great gifts you can find for less than $50. 

The holidays can be a financially stressful time. There’s so much pressure to spend money, which is tough if you’re someone who’s trying hard to put more into your savings account.

The good news, though, is that Costco has a host of great gifts available right now that will result in a credit card tab of less than $50. Here are some worth looking at.

1. The Babysitters Club: 18-Book Collection

Have an avid reader in your household or family? Costco has an 18-book collection of The Babysitters Club series available online for just $31.99. That’s less than $2 per book!

If you’re a teacher looking to give a holiday gift to your students, you could also buy a set like this and give each child a single book (the series is pretty easy to follow even if you read the books out of order). Do note that Costco prices can vary between what you see online versus stores — but in-store prices tend to be even more competitive.

2. The Ultimate Tie Dye Kit & Workstation

Have a child who’s crafty, or looking for that sort of gift for someone in your life? Costco is selling a tie dye kit for $24.99 online right now. It comes with 24 different colors in pre-filled bottles, latex-free gloves, and more.

It’s also worth noting that while this kit is rated for kids aged eight and up, it’s the sort of thing that probably requires some amount of parental supervision for pre-teens. So if you’re looking for a more independent activity for your kids, you may want to stick to a basic arts and crafts set.

3. Costco Wholesale Unisex Logo Hoodie

Know someone who’s a huge Costco fan? For $26.99, they can show off their love of Costco all day and night with a unisex sweatshirt. It comes in black, gray, and white, and online reviews indicate that it’s warm and high in quality — just like you’d expect from Costco.

4. Vacu Vin Wine Set Elegant, 5-piece

Have a wine lover in your life? This five-piece set for $34.99 could really make their day. It features a corkscrew, an active cooler that chills wine within 15 minutes, a serving spout, and a stopper for those nights when you can’t polish off a bottle in its entirety.

If you have a friend or family member who’s recently moved to a new home, this could also double as a housewarming gift.

5. Rocky Mountain Chocolate Factory Chocolate Favorites Tower

When you’re not sure what to get someone you love for the holidays, chocolate is a good option to fall back on. And if you act very quickly, you can snag a Rocky Mountain Chocolate Factory tower for only $39.99 online as a Cyber Monday special (the regular price is $54.99). This assortment features milk and dark chocolate toffee, chocolate-covered pretzels, dark chocolate almond clusters, and more. It’s also a great gift for someone who doesn’t have a lot of storage space at home and might appreciate an item they can consume and then be rid of.

These items are just five of many you can score at Costco for less than $50. It pays to browse online or head over to your local warehouse club store to see what you can find to finish your holiday shopping list.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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New year, new opportunity for a better bank account. Keep reading to learn why changing to a new bank could be a great move in 2024. 

Banks have come a long way — gone are the days when you had to choose from only the banks in your city, and if the accounts they offered weren’t quite up to par, you were stuck. Now, some of the best banks are located entirely in cyberspace, and you can access their services and accounts from anywhere.

If you’ve been with the same bank for a while and are becoming frustrated with it, you can switch. And since we’re approaching the end of 2023 (can you believe it?), now might be the perfect time to find a new home for your money. If any of the following reasons describe you, I recommend switching banks.

1. You’re earning peanuts on your savings

Earning a laughably low APY (annual percentage yield) on your savings is so 2021. The Federal Reserve has increased the federal funds rate 11 times since 2022 in an attempt to fight inflation. A higher federal funds rate has the effect of making it more expensive for consumers to borrow money (such as in the form of a personal loan or credit card), but it has also led to higher APYs on savings accounts. With a higher APY, you’ll earn more on your money, just for leaving it in the account.

Unfortunately, some big brick-and-mortar banks haven’t kept pace. The FDIC reports that the average APY on all savings accounts right now is 0.46% — but the best savings accounts pay more than 10 times that figure, so you can extrapolate that others pay far less. If your savings is languishing in an account paying, say, 0.01% (the real APY on one of my two savings accounts), it could be time for a change.

2. You’re being charged fees

Why should you have to pay for the privilege of keeping your money in the bank? Good news — you don’t. Account maintenance fees are a common feature among checking accounts, but some banks have phased them out entirely.

Online banks have lower overhead costs than brick-and-mortar banks do, so you’re more likely to find a fee-free checking account offered by one. Some banks have even reduced or ended overdraft fees. If you’ve already accidentally overspent your account balance, you don’t need another fee on top of it.

3. Your current bank’s customer service is lacking

Finally, if you’re struggling with lousy customer service at your current bank, consider switching accounts in the new year. If you have a question or need help with your account, it’s important to be able to access a real live human person.

Online banks shine in the customer service department, too — many of them offer 24/7 access by phone or chat. Plus, many online banks have stellar mobile apps with features like budgeting tools, credit monitoring, and more. If your current bank stinks at customer service, make the change.

Changing banks is easier than you think

OK, let’s say I’ve convinced you that it’s time to find a new home for your money. It’s going to be a pain in the neck to open new bank accounts, right? Actually, it’ll probably be easier than you realize, especially if you opt for an online bank. You’ll be able to open accounts from home, at your convenience, and you only need a little information (such as your photo ID, Social Security number, address, and birthdate) and time.

Switching your bills and direct deposits is the part of the process that could take a bit longer, but it still shouldn’t be too much of a hassle. If you’re opening a checking account and need to move your paycheck direct deposit, you’ll need the routing and account numbers. You’ll get those when the account is open, and you can send them to your employer’s HR department to ensure the money lands where it needs to.

Similarly, if you have bills set to auto-pay every month, you need to update the payment information. I recommend going through a few months of your most recent statements from your current bank to find them all — you don’t want to forget to move a bill and end up with a late payment penalty (or an overdraft fee on the account you’re closing).

If you’ve been dealing with customer service hassles or even just a painfully low APY at your current bank, consider making a bank switch in 2024. You (and your money) deserve better.

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

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