5 Money Moves Wealthy People Make Before the Start of Any New Year

5 Money Moves Wealthy People Make Before the Start of Any New Year   

By Laura Bogart  October 25, 2024

There are certain traditional ways people ring in the new year. Some clink glasses at midnight, or go in for a lucky kiss. Others meditate. And, let’s be real, plenty are already in bed. Wealthy people may be among those celebrating at parties, on the yoga mat, or off in dreamland — but they’re also a little different. They know that part of embracing the new year means setting themselves up for success.

While you may think the financial moves of the wealthy would be like moving mountains for your own humble accounts, the truth is, a lot of these tips are easy enough for everyday people to follow — including you.

GOBankingRates caught up with some financial planners and experts to learn more about the steps you can take to get ahead financially in the new year — and beyond.

1. Have a Financial Plan

George McFarlane, president of 7 Waters Advisors, joked that many people find budgeting about as appealing as getting a root canal. However, just like a root canal can eliminate a bad tooth and keep an infection from spreading, sitting down to budget can pull out the rot in your spending habits.

“Setting aside a couple of days to review your spending habits this year and plan for next year can significantly enhance your financial well-being,” he said. “Begin by examining your expenditures.”

He recommended starting with a review of your bank and credit card statements, since it’s all too easy to overlook small purchases that add up quickly. From there, you can categorize your expenses into necessary and unnecessary spending, which are pretty self-explanatory.

“After categorizing your expenses, set a savings goal for the upcoming year, aiming to increase your savings compared to the previous year,” he said. ”With these considerations in mind, create a budget that prioritizes savings and essential expenses. Once you determine how much these will cost each month, you’ll know how much you can afford to spend on non-essential items.”

2. Maximize Your Tax-Efficient Savings Contributions

As a global success coach with G Corp Advisory, Jacob Galea has insight into the habits of highly successful people. He said that high-net-worth individuals make sure they’ve maximized their contributions to tax-advantaged accounts like retirement plans and health savings accounts to help reduce taxable income while boosting their savings.

His advice?

TO READ MORE:  https://www.gobankingrates.com/money-moves-wealthy-new-year-2525842/