Set finances on track to celebrate Lunar New Year
Earlier this month, the Asian zodiac transitioned from the year of the skillful and creative rabbit to the powerful, noble and highly successful dragon. In many cultures, the Year of the Dragon predicts abundance, prosperity and good fortune.
So, it’s no surprise that dragons often symbolize money. As we welcome the Lunar New Year and the Year of the Dragon, now is the time to welcome in a new, positive energy regarding finances, and it’s another chance to get New Year’s resolutions on track.
Many people quit their New Year’s resolutions by the second Friday in January, known as “Quitter’s Day.” Don’t be a quitter — this is an opportunity to assess your financial resolutions, check if you’re on track or make adjustments.
Here are a few tips to improve your financial health during this fortuitous Lunar New Year:
1) Track your spending, build a budget and set a goal. Tracking your spending can give you a better sense of where your money is going each month, so you can decide where and if you need to cut back or invest more. Using technology can help. Mobile phone apps and online banking offer easy ways to track spending, follow a budget and maximize your hard-earned dollars. Set a goal to eventually include savings in your budget at 15 to 20% of your income.
2) Pay debt down. You can be savvy about paying down debt by breaking it down and paying off what you owe a little at a time. Remember, there are various types of debt and not all debt is created equal. For credit card debt, focus on paying off high-interest-rate cards first or cards with the smallest balances. If you can, pay more than your monthly minimum to pay less interest overall.
3) Save for emergencies. It’s wise to have enough savings to cover three months of living expenses, and many banks can help with automatic savings transfers. Start small, with just a few dollars a month or per paycheck. Your savings should be accessible, not locked up in accounts that charge you to access your money. Although it shouldn’t be too accessible — consider a separate, interest-bearing FDICinsured savings or money market account.
4) Invest in yourself. Saving for retirement is an investment in your future self. Look at how you’re planning for retirement to see if you’re maximizing your contributions or if can you contribute a little more to your 401(k) or IRA. Remember, retirement plans often offer tax advantages, so do some research and take advantage of the available options. Bank advisors can help.
For more tips, Bank of America has a free financial education website, BetterMoneyHabits. com, that can help build financial know-how on topics like budgeting, saving, managing debt, home ownership, retirement and more — so people have the power to learn and achieve their goals.
Setting and working towards financial goals are important parts of your financial health. With the right planning, you can build lasting positive habits that guide prosperity and wealth in your financial life in 2024 and beyond.
Victor Sandoval and David Salazar are employed by Bank of America in New Mexico. Victor Sandoval serves as a client services team manager for Bank of America in Rio Rancho and can be reached at vsandoval0412@bofa.com. David Salazar is a business solutions Advisor for Bank of America in Albuquerque and can be reached at david.salazar2@bofa. com. Both Salazar and Sandoval also serve as co-shairs for Bank of America’s Better Money Habits classes, which are periodically held in Albuquerque at the National Hispanic Cultural Center.