Eyes On
Retirement Accounts
2022 was a rough year for retirement accounts (hello, 401(k)s and IRAs). The S&P 500, an index used to track the largest publicly traded companies in the US, fell 19.4% during the stock market’s worst year since 2008. One big reason: Inflation. But there is a silver lining: The IRS raised individual contribution limits for retirement accounts, so this year you’ll be able to put about $2,000 more into your 401(k). Cha-ching.
Your move:
Keep investing. Contributing to your retirement accounts now could turn into more $$$ later, thanks to compounding returns.
Get the match. If your employer offers a 401(k) match, contribute at least enough to get the full amount. (Psst…that’s free money.)
Review your accounts. Consider rebalancing your portfolio or meeting with a financial advisor to make sure you’re set up to meet your retirement goals.
Don’t pull your money out. You could be hit with penalties and fees for withdrawing early. Plus, you’ll miss out on future gains as the market improves.
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Money Tip of the Week
Try the ZBB method.
Zero-based budgeting, ZBB for short, puts your entire paycheck to work. Create a plan for every dollar you earn by categorizing all of your spending until you hit $0. That includes everyday expenses (think: rent, bills, etc.). Plus, the fun stuff like saving for that summer trip to Italy annnd the not-so-fun stuff like paying off credit card debt.
Financial Goal Unlocked
The Goal: Build better financial habits in 2023.
A Winning Mindset: Daily, weekly, and monthly habits are important in reaching challenging financial goals. Many bad habits start early and can feel difficult to break (hi, impulse buys), but making small changes can set you up for financial success.
A Winning Strategy…
Track your spending. Are you dropping $$$ on a daily latte? Ordering takeout five times a week? (No judgment, you do you.) Track your spending to see where you can make small changes to save more.
Set attainable goals. What are you working toward? Saving for a down payment? To start a family? Set goals that are SMART, aka specific, measurable, achievable, realistic, and time-bound.
Celebrate the small wins. Did you stick to your budget this month? Skip an expensive meal to pad your emergency fund? Celebrating the little things can keep the momentum going.
theSkimm: Habits play an important role in your daily spending choices, and small changes can lead to big outcomes. Track your spending, set SMART goals, and celebrate little wins along the way to start the year on the right financial footing.
And Also This…
Who’s getting more 9-to-5 protections…
Pregnant and nursing workers. The new Pregnant Workers Fairness Act — included in a recently passed $1.7 trillion gov funding bill — will provide pregnant workers with reasonable accommodations like access to water, seating, and extra bathroom breaks. Plus, protections for workers’ rights to breastfeed and pump during the workday. Experts believe this will improve gender equality in the workplace and conditions for workers in low-wage jobs like home healthcare and food service, which are often occupied by women of color.
What’s bringing down home prices…
Zoomtowns. Bonus: Rent is getting cheaper, too.
While the job market holds steady…
A big tech company is laying off thousands.
What’s got us stuffing envelopes with cash…
This viral TikTok savings challenge.
Who hit the jackpot (twice)…
Asking for a Friend
Q: What is the biggest obstacle women face when it comes to saving their first $10,000?
Tori Dunlap: Systemic oppression, the pay gap, and lack of opportunities are the main reasons why women face financial hardships, including the struggle to save money. We also condition women to feel like they're not deserving of money and that their pursuit of wealth is bad or wrong. Men aren’t taught that, they are encouraged to pursue wealth. It's also difficult to strike a balance between saving for the future, paying off debt, and taking care of your present self. I often tell people that you don't have to stop spending money altogether, you just need to stop spending it on things you don't care about. Mindful spending doesn't mean deprivation, it just means being more thoughtful and using your hard-earned income on things that you actually like.
Tori Dunlap is a money and career expert, podcast host, and author. After saving $100,000, she quit her corporate job in marketing and founded Her First $100K to fight inequality by giving women actionable resources to better their finances. Her answer has been edited for length and clarity.
Skimm’rs
Tell Us How You Really Feel:Forget “new year, new me.” In 2023, it's all about new year, new money goals. What are your 2023 financial resolutions? Tell us here.
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