Blog post

Financial Habits We’re Leaving in 2023

Tandem Staff

As the saying goes... new year, new you! January is often viewed as the perfect time to leave indulgence in the past and reevaluate our habits. In 2023, many of us held onto habits that cost us money, opportunities, and financial growth. Let's make 2024 the year we break free from these gauche financial behaviors and pave the way for a wealthier future.

1. Ignoring Cash Back

One of the most significant financial mistakes we're leaving behind is ignoring cash-back opportunities. Cash-back from credit cards or programs like Rakuten offer a simple yet effective way to save on everyday expenses. Whether it's through rebates or points that can be exchanged for gift cards or cash, these programs can put money back in your pocket. By not taking advantage of them, you're essentially leaving free money on the table. It's time to start reaping the rewards of your spending.

2. Ditching Regular Bank Savings Accounts for High-Yield Savings

In 2024, we're upgrading our financial game by saying goodbye to regular bank savings accounts. These accounts offer little interest rates that hardly make your money grow. Instead, opt for a high-yield savings account. This safe and secure option is perfect for your emergency fund or short-term financial goals. With a better interest rate, your money can work harder for you without the need for complex investments.

3. Tying Savings to Specific Goals

Another smart financial habit we're embracing is tying our savings to specific goals. Whether it's a dream vacation, a wedding, a significant purchase, or an emergency fund, having designated savings accounts for each goal is a game-changer. This practice not only helps you stay organized but also limits the temptation to dip into your savings for unrelated expenses. Apps like Tandem can assist you in setting up and tracking your financial goals, either solo or with a partner.

4. Avoiding Auto-Renewals for Insurance

Auto-renewing your car or home insurance without a second thought? It's time to break that habit. While trust in your insurance providers is essential, it's also crucial to double-check that you're getting the best premiums for the coverage you need. By shopping around, you may discover better deals that could save you money while maintaining the protection you need.

5. Opting for Quality Over Cheapness

Investing in quality items is a financial habit that pays off in the long run. Choosing the cheapest option often leads to frustration, as these items tend to have a shorter lifespan and may require frequent replacements. Whether it's household items, vehicle maintenance, or technology purchases, a little upfront investment in quality can save you both time and money down the road.

6. Embracing Bulk Buying for Savings

Last but not least, we're not shying away from buying in bulk. Purchasing items in larger quantities can often reduce their per-unit cost, offering significant savings in the long term. A Costco membership, for instance, can help you make the most of this strategy, provided you're mindful of your actual consumption and storage capabilities.

As we enter a new year, let's embrace a more financially savvy approach. Here's to a brighter and more prosperous 2024!


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