20 Money Moves to Make in 2020

20 Money Moves to Make in 2020

December 13, 2019

Written by Nicole

We’re getting ready to turn the corner into a new year and a new decade!

Are you ready?!?

I hope so!

In preparation for the new decade, I’ve prepared a list of 20 Money Moves to Make in 2020.

Let’s dive in…

1. Develop a plan to pay down debt.

It’s not enough to have the desire to get out of debt, you have to have a plan of action. 

2. Live the budget. 

Creating the budget is one thing, but living the budget day-to-day is a different story.  One of the biggest budgeting mistakes is having a ‘set it and forget it’ attitude. Putting the budget on paper is great, but in order for it to work, we have to track expenses throughout the month, reconcile, and revise. You can even budget if you’re living paycheck to paycheck.

3. Start a year long-savings challenge. 

Saving is a habit that most of us have to develop over time. It doesn’t come naturally to everyone. In the coming year, commit to saving a specific dollar amount every paycheck so that you can have a stockpile of cash at the start of next year. 

4. Create a money journal.

Our behaviors with money (avoidance, hoarding, overspending) are often linked to issues from childhood that haven’t been addressed. Journaling about your relationship with money will better equip you to deal with the emotional side of money. 

5. Get an accountability partner.

Find a friend or family member on a similar financial journey and lean on each other for support. 

If you don’t have anyone IRL (in real life) that you can partner up with then look to online communities for the support and encouragement that you need. The doors will be re-opening for the Beyond the Budget Club very soon! Hop on the waitlist if you’re ready to join a group of like-minded individuals pursuing financial freedom. It’s like a support group for your money!

6. Review your credit report and score at least once per quarter.

There are tons of resources online like Credit Sesame, that you can use totally for free. 

7. Stack the emergency fund.

Set a goal to ultimately save 3-6 month of expenses. There’s talk of a 2020 recession, but regardless, now is always the best time to shore up the financial house.  

8. Start a Life Happens Fund. 

I refer to it as an emergency fund for my emergency fund. This buffer account is a great way to protect your actual emergency fund and reserve it for ‘real’ emergencies.

9. Increase contributions to your workplace retirement account.

It’s not sexy but it works. Start with a 1-2% increase if your budget allows. If you received a raise, market increase or bonus this year, increasing your 401k contributions is a great way to hold onto more of your cash and avoid lifestyle creep. 

10. Increase your savings rate.

The advice to save just 10% is outdated especially for those of us that want to reach financial independence, retire early, or leave money to your heirs someday.

11. Start paying yourself like you pay a bill. 

I don’t like owing people money so I always feel an urgency to pay my bills in a hurry. While it’s honorable to repay what we owe, it is also important to pay ourselves. Paying yourself like you pay a bill means that we prioritize saving money for the future by creating an actual line item in our budget each month for savings.

12. Read more!

This is one of the habits of self- made millionaires so there must be some validity to it!

13. Adjust your withholdings at work and give yourself a raise. 

If you’re getting a big income tax refund each year then you’re likely having too much money taken out for payroll taxes. Why give the government a free loan? They certainly won’t return the favor!
Recommended Video: How to Give Yourself a Raise

14. Get a side hustle. 

I call side hustling the secret weapon in your financial arsenal. A side hustle will allow you to create more income to save, invest, and pay down debt faster. 

15. Look into getting both life insurance and short-term disability insurance.

If you have a family that depends on your income this is a must. Nobody likes to think about this stuff unfortunately until it’s too late. Life insurance doesn’t have to break the bank either. You can get a quote in Minutes with a company like Bestow, they have policies starting at Life Insurance starting at $2.50/month

16. Take your lunch to work on most days. 

This frugal living hack has saved me thousands of dollars over the years! 

17. Start dating your money!

18. Open a Roth IRA.

Roth IRA contributions grow tax free and your distributions in retirement will also be tax free!

19. Give yourself a monthly spending allowance.

Personal spending money helps you to avoid deprivation as you are budgeting. I often use my personal money to indulge in the occasional smoothie or mani-pedi. To keep the money separate from my household money, I transfer it to my CHIME debit card

20. Open a 529 plan for your kids.

It’s a great way to save for college. 

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2 Comments

  1. Rakia

    Hey Nicole, the link to the free printable savings chart isn’t working..

    Reply
    • Nicole

      Thanks for letting me know Rakia! It’s now working. Here is a direct link as well: https://bit.ly/2SQs4sH

      Reply

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