Money Musings 💭 Plan for these 💰 deadlines…
What you’ll find below:
Reflection: Don't miss these deadlines
Money Move: This move will help you avoid 2024 budgeting mishaps
You Gotta See This: Build your credit score just by paying rent (+ a 💰 giveaway!)
Reel of the Week: A holiday tipping guide
As a business owner, I didn’t have access to a company 401(k) (or company retirement plan) so I opened a business solo 401(k). I can also contribute to an Individual Retirement Account (an IRA).
Regardless of your plan, knowing the deadlines to contribute can help you maximize what you invest. 🤑
The deadline to contribute to a company-sponsored plan like a 401(k) is December 31st.
If you contribute to an IRA (individual retirement account), you have more time. The deadline to contribute is the tax deadline, April 15, 2024.
In 2023 you can contribute up to $22,500 in your 401(k) and $6,500 in your IRA. If you are over 50, the numbers go up to $30,000 and $7,500.
If you aren’t close to maxing out your contributions, that’s okay!
There are a couple weeks left in the year to contribute to your 401(k) or 403(b) and months left for your IRA. Think about what you can do.
Can you up your contributions by 1% for the rest of the year? Are there changes you can make so you can contribute a little more than you are currently?
Then, plan ahead for next year.
Here are the new contribution limits for 2024.
401(k) / 403(b): $23,000 ($30,500 if you’re over 50 years old)
IRA: $7,000 ($8,000 if you’re over 50 years old)
HSA (health savings account): $4,150 if single or $8,300 for a family
I like to work backwards each year. For example, if you’d like to max out your IRA, take the 2024 limit of $7,000 and divide by 12. To max it out, you’d want to contribute $583 per month or $135 per week.
You can also start with what you can and sneakily increase your contributions by 1% every few weeks. This is my favorite way to get contributions up!
Hit reply and let me know your plans. I love to hear them.
P.S. ICYMI, scroll down to learn how to build your credit score just by paying rent (+ there's a $$$ giveaway).
MONEY MOVE OF THE WEEK
NEW YEAR’S PLANNING SERIES - STEP 2: SINKING FUND CHECK-IN.
We kicked off our New Year’s planning series with a spending recap here. Now we’re going to take a look at our sinking funds.
I’m a huge proponent of sinking funds. Because larger, infrequent expenses like a bachelorette party, the holiday season, our health insurance deductible, or even a quarterly haircut can throw our finances out of whack.
We can make our lives a lot less stressful by setting aside money (automatically) each week, each paycheck, or every month for these expenses into a HYSA.
If you already do this, great! Now’s the time to recap.
For which areas of your life did you have sinking funds?
Did you have enough money when you needed it in these areas? If not, how will you change the plan for this coming year?
Were there other areas you’d like sinking funds for? You can look back to your budget to find bigger, irregular expenses or do some recon into higher than typical credit card bills
Lastly, are there new expenses you want to plan for next year that you didn’t have this year? Account for those too!
If you’ve never used sinking funds, I’ve got you. Here’s a free guide and tracker. And when you sign up, you get a video to walk you through too.
you Gotta See This
BUILD YOUR CREDIT SCORE JUST BY PAYING RENT.
Sponsored by Self.
Like age, credit scores are but a number. But a good credit score can save you money on interest, make it easier to rent an apartment, and help you qualify for all types of loans.
Well, I have some good news. 🥁🥁🥁
If you rent, there’s a new way for you to get the credit you deserve!
Self just launched a new, completely FREE rent reporting service, so now your on-time rent payments can help build your credit score. Click here to learn more!
And because good news comes in pairs, Self is is celebrating by giving away $20,000 this December!
Every week, 5 winners will get $1,000 each from Self.
To enter, simply head over to Self's Instagram or TikTok, look for their 4 unique giveaway posts during the month, and follow the instructions.
Whether you put it towards covering your January rent or boosting your savings, this could be just what you need to get ahead in the New Year.
If you won $1,000, how would you spend it? Hit reply and let me know.
Results vary. You may not receive an improved credit score. Not all bill payments may be eligible. Customers who subscribed to rent and bills reporting from January to April of 2023, who had a starting score of over 300 but under 600, saw a positive outcome, which may have been influenced by other products. Other factors, including activity with other creditors, may impact results. Not all lenders, including auto and mortgage lenders, use scores impacted by rent payments.
your weekly money wins
Here are all the amazing money moves you made this week 👏👏👏
Erin: This week my financial advisor told me that based on my retirement savings and investments, I could retire as early as 11-13 years from now. I'm 40 and so excited about my progress!
Xena: Rebalanced my household budget we're both are getting a raise! (30% pay difference)
Jessi: Took a bus instead of an Uber with my cousins in NYC ❤️
Ali: Got caught up on all my monthly spending tracking! (I was 6 months behind 🫣)
Torr: Hit a 750 credit score 🎉
Marissa: I will be ending the year with $3k in my emergency fund!