Inflation hurts the wallet. The fight against inflation too, since it involves an increase in interest rates. Everyone was complaining about the price of groceries and the rising bills in general.
On the eve of a new year, I would like to offer you a few suggestions to better face the new challenges of 2024. To sleep better. And to hope to have the freedom to retire a little earlier, why not?
The debts
Yes, interest rates will likely start to fall in 2024. But much less quickly than they rose. So for most of the year, rates remain high. We will still be in a context where the idea of repaying debts is excellent. Starting with the loans with the worst interest rates, obviously.
An unexpected influx of money? Clear a debt, prepay the mortgage.
Credit cards
The worst form of debt. Interest rates that are around 20% quickly become a high monthly payment. As soon as you do not pay the balance in full, you must see them as an enemy of your financial health, a Dracula breathing down the neck of your bank account, more dangerous than inflation.
You should also avoid accumulating too many cards. A main one and another for safety which would help you if the first was lost or demagnetized during a trip. A third if it allows you to benefit from a generous benefits program AND if you are as disciplined as Georges St-Pierre in training to never let your balance accumulate.
Invest
You have to invest. Ideally every paycheck, what we can. In the stock market, cautiously. Via ETFs (exchange traded funds) or mutual funds. Or directly shares of solid companies if you know a little about it. If not investment certificates, the rates will still be worth it in 2024. In any case, invest with a plan.
Shop your insurance
Auto, home… premiums are increasing at a crazy pace. Don’t renew without checking! The differences are measured in hundreds of dollars. The company that offered you the best deal two years ago may no longer be the right one today. A boring task, but minutes well spent.
Ask for a salary increase
If you are in a non-unionized environment, you are responsible for maintaining your purchasing power in the face of inflation. IF you work hard and well, asking for a raise is not embarrassing. If you are unsteady, practice thinking about how René Angélil would have asked it. Class and poise. Very soflty.
Stop living from paycheck to paycheck
More than a third of households do not have a penny in advance. We wait for the pay to live and pay the bills. An unforeseen event causes trouble. Too stressful in these years of uncertainty! 2024 will be no different. Try to build yourself a cushion, even if it means working extra time.