This Week in Your Wallet: Your Attitude and Money in 2014
Brrrrr. I know, you can say that again. I don’t know what the last few days have brought for you — but I know what they’ve meant in my house: Cancelled flight after cancelled flight as my son tries to get back to college in the Arctic-frozen Midwest. He and I have both spent a considerable amount of time booking, rebooking, calling customer service, holding (sometimes for more than an hour), and then doing the whole thing over again. All that was after his first eight-hour stretch at the airport.
At times like these, we can all use a little more patience. It’s a trait that can serve us well, not just when it comes to keeping our cool in the face of travel delays, but in the face of markets that are moving very quickly in one direction or another, items you’d like to purchase (but not until they go on sale) and many other situations. Like optimism and resilience, patience can be learned. How? For one thing, stop imagining the perfect scenario. It may not really exist. For another, try to talk yourself (actually talk yourself) down. These and more suggestions are from a recent Real Simple magazine piece. You can check them out here.
And now for the other news of the week.
Financial Resolutions
We’re a week into the New Year, and just about everyone seems to be talking resolutions. As always, I’m happy to hear that for many of you, your resolutions include financial ones. In fact, according to Fidelity Investments’ fifth annual New Year Financial Resolutions Study, over half (54%) of Americans are planning to give their money habits a makeover in 2014. Topping the list: saving more, paying off debt and spending less.
It also looks like more of you (10%) are planning to prioritize your savings for short-term goals, like emergency funds. As long as you don’t lose sight of your savings for long-term goals, like retirement, or sending the kids to college, this isn’t a bad thing at all. Ken Hevert, vice president of retirement products at Fidelity, says this shift in focus suggests Americans are becoming more balanced with their savings plans.
One way to make your money resolutions become realities is to go on autopilot. “Individuals who are on an automatic savings plan are much more likely to stick with their savings as either: A) They’re faced with personal financial challenges, or B) The market becomes volatile,” Hevert said. “We’ve seen, year after year, people who are on an auto contribution plan – either to a 401(k) or IRA – those are the ones who continue to stick to it.” The same suggestion can apply for your regular savings accounts, too.
For more on the study, and more tips, you can head here.
Consider an IRA in 2014
If you want to retire rich, one of the first things you should do in 2014 is open an IRA. That’s what Motley Fool’s Dan Caplinger says in USA Today. Why 2014? His opinion is that unlike recent years, wavering tax laws (and rates) have finally found solid ground, making the act of funding an IRA less of a gamble. Mine is that sooner is always better — and there’s no time like now. How much you save plays a huge role in how much you’ll have for your eventual retirement. So, particularly for all of you who don’t have access to another workplace retirement plan, this is a great move. And keep in mind, you can still make IRA contributions for 2013 until April 15 of this year.
Prices to expect in 2014
Let’s start with some good news. Gas prices will be lower this year, by an average estimate of 7 cents a gallon. That comes on the heels of double digit price drops in 2013. But many other prices are poised to rise. Recently on TODAY, I chatted with Savannah Guthrie on what you can expect. At the grocery store, you’ll be paying more for beef and bread (prices on wheat and wheat flour are up). Chocolate prices are on the rise too. You can find more grocery saving strategies here. And then there’s the price of postage.
In the past, Forever Stamp prices have generally gone up by a cent. Starting January 26, however, they’ll jump from 46 cents to 49 cents apiece. It’s supposed to be temporary, but just in case, buy more now. I’m still enjoying the cute gingerbread house ones from the holidays. For more price jumps, and my ways to save, you can see the full segment here.
Have a great – and I hope warmer – week!
Jean
