What better way to ring in the new year than to take a grasp on your financial future? If you haven’t started already, make 2018 about investing in yourself for the future. Practice good habits that will benefit you long term.
Here are four smart investment moves to make in 2018:
Go on a Cash Diet
It is easy to overspend with credit cards, until you look at your expenses at the end of the month. Give your credit cards a break and allot yourself a certain amount of cash to use for one week per month. You can increase or decrease the time, but by doing this, it is easy to see where you money is going and where you can make cuts in the future. Moving forward, you are creating positive financial habits for yourself.
Put in Extra Hours
Another way to invest in your future this year is to put in some extra hours at work. Depending on your job and its requirements, you could even get a side job. If you are fortunate enough to generate two incomes, you can use one of those paychecks as spending money, and the other strictly for bills.
Increase Regular Contributions to Your Retirement Plan
This varies from person to person, but everyone should save for retirement. Think about your 401K or other retirement plan. Do you have a plan? Can you increase your contribution this year by at least one percent of your income?
Keep an Eye on Interest Rates
U.S. interest rates vary generally from year to year. If rates are expected to rise this year, that could impact you in a few ways. Higher interest rates generally have a positive impact on money market and credit-deposit (CD) rates. While rising interest rates are typically good news for the profitability of the banking sector, a rate hike carves into profitability for the rest of the global business sector. That’s because the cost of capital required to expand goes higher. That could be terrible news for a market that is currently in an earnings recession.
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