The 3 Best Money Moves for February 2024
February 5, 2024 | by stockcoin.net
In the article “The 3 Best Money Moves for February 2024,” the author highlights three important financial tasks to tackle during the month of February. As the year starts to pick up pace, it’s crucial to stay on top of your financial goals. The first step is to have an open discussion with your partner about finances, as it can strengthen your relationship and lead to better financial harmony. Next, with interest rates expected to decrease, now is the time to consider purchasing a certificate of deposit (CD) to take advantage of the high rates. Lastly, getting a head start on your tax return can save you time and potentially result in receiving your refund earlier. By following these three money moves, you can set yourself up for financial success in the year ahead.
Talk to your partner about finances
Having open and honest communication about finances with your partner is crucial for a healthy relationship. Many couples underestimate the value of discussing money matters and overestimate the negative emotions that may arise during these conversations. Research shows that talking about money can actually strengthen a relationship and lead to greater financial harmony.
Money-related topics often come up in relationships, whether it’s deciding who pays the bills, aligning goals for homeownership and retirement, or simply discussing spending habits and debt. By avoiding these conversations, you may be risking future financial issues that could impact both partners. For example, debts incurred by one partner after marriage can affect both individuals’ credit scores.
It’s important to approach this topic with sensitivity and a willingness to listen. Schedule a time to have an open and calm conversation about your financial situations. This doesn’t mean you have to make immediate decisions or merge all your finances, but it sets the foundation for open communication and understanding. Engaged and newly wed couples who have joint bank accounts have been found to have higher relationship quality and satisfaction with handling money together. Being transparent about finances can create a sense of unity and shared responsibility within the relationship.
Buy a CD before rates go down
With the Federal Reserve planning to cut interest rates in the near future, now may be a good time to consider investing in a certificate of deposit (CD). CD rates have been relatively high due to the central bank’s inflation-busting interest rate hikes. However, several major online banks are already starting to lower their CD rates in anticipation of the rate cut.
While it’s impossible to predict exactly when and by how much CD rates will fall in 2024, it’s unlikely that they will increase further. CDs may not be suitable for everyone, as they lock up your money for a specific period of time. However, if you’ve been considering taking advantage of the current high rates, now would be a good time to do so. You can also explore CD laddering, a strategy that allows you to keep your savings liquid while taking advantage of higher rates.
Get started on your 1040
One of the most important financial tasks in February is to start preparing your tax return. By getting a head start on your taxes, you can avoid the last-minute rush and potentially receive your refund earlier. The filing deadline for taxes this year is April 15th.
Tax season is already in full swing, with the IRS beginning to process tax returns on January 29th. By now, you should have received most of your tax documents, such as W-2 forms from your employer. It’s important to gather all the necessary documents and information to ensure an accurate and timely filing.
There are a few changes this year that may affect how you file your taxes. The IRS has expanded the Free File program to include taxpayers with an adjusted gross income of $79,000 or less in 2023. This is an increase of $6,000 from last tax season. Additionally, eligible taxpayers in select states can participate in the IRS’s new Direct File pilot program, which allows for filing state and federal returns in one streamlined process.
Preparing your tax return early can save you stress and ensure that you have plenty of time to review and make any necessary adjustments. It’s also important to take advantage of any tax deductions and credits that you may be eligible for. Seek the help of professional tax preparation software or consult with a tax professional to maximize your tax benefits.
In conclusion, February presents an opportunity to address important financial matters such as discussing finances with your partner, taking advantage of high CD rates before they go down, and getting a head start on your tax return. By focusing on these tasks, you can set yourself up for a successful financial year ahead. Remember to approach these topics with open communication, conduct thorough research, and consider seeking professional advice when necessary.