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One of the big money moves I made this year was merging all of my savings accounts into one account. My previous savings strategy stopped working for meI've had three savings accounts for the past couple of years:Account A was for my emergency savings, stored in a standard savings account at the same bank as my checking account. Account B was for my homeownership dreams, stored in a high-yield savings account at an online bank. I opened multiple savings accounts to keep my savings separate and reduce the temptation to spend that money on other things. Merging my savings accounts meant embracing simplicityBefore doing anything, I sat down and wrote out what I wanted from a savings account.

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But many people don't realize just how much of their insurance coverage is tied to their employment. Disability, life, health, dental, vision — all can evaporate quickly after a pink slip. Life insuranceAnother common employer-provided insurance is group life insurance, which pays out a death benefit if you die while employed. Similar to disability insurance, though, this group life insurance is contingent on your working at that company. That's why I highly recommend considering an individual life insurance policy.

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It's easy to see pet insurance as optional for most pets, but the cost of pet care can be high. Most pet insurance plans cover the big costsMany people also believe that pet insurance doesn't cover that much. There are two types of pet insurance — illness and accident insurance and accident-only insurance. Make sure the math works in your favorLike with human health insurance, pet insurance has a monthly premium you'll need to pay to maintain coverage. Looking to the futureWhile it's not always pleasant, thinking through all the scenarios can help you pick the best pet insurance policy for you.

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But some smaller, more specialized tax credits and deductions could score you hundreds (or even thousands) of extra dollars back as well. Here's an overview of some overlooked federal and state tax credits that filers often miss. At first glance, this might seem counterintuitive — why wouldn't you deduct state income tax, which is usually a larger sum? AdvertisementEven if your state has an income tax, you may still come ahead by itemizing sales tax instead, depending on your tax profile. The IRS provides tables and tools to calculate if claiming sales tax delivers more savings than claiming income tax.

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Filing your taxes early means you have more time to make last-minute retirement account contributions. Finishing your taxes early also gives you time to plan ahead for next year. But as a financial planner, I always recommend getting them done as early as possible. Even if you're not a freelancer, filing early can ensure you get your return early or have more time to pay your bill. Plus, evaluating my latest tax return early gives me a game plan for next year's liability.

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However, as a financial planner, I always recommend being deliberate when it comes to your annual bonus. AdvertisementHere are four things you should avoid buying with your hard-earned bonus money — and some advice on what you should do with it instead. These costs can add up and crunch your budget long after the bonus money is spent. But technology changes and upgrades so rapidly that pouring bonus money into flashy new gadgets often means buyer's remorse sets in fast. But make sure you're using it wisely so that short-term excitement doesn't result in long-term financial regret.

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Watching your investments slide into the red can be a stressful experience for anyone, especially for the money you're setting aside for long-term goals like retirement. As a financial planner, I encourage a proactive approach to recession-proofing your retirement, including switching the bulk of your portfolio to safer investments with consistent rates of return. Instead, their interest rates are tied to the overall stock market, like the S&P 500. These annuities often pay more interest over time, as the stock market historically rises over time. They'll be much less likely to lose value if the stock market keeps dropping.

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I've tried to use budgeting apps, but I found they didn't categorize my expenses correctly. There's no shortage of budgeting apps and tools out there, with plenty of bells and whistles to help you make the most of your money. The best budgeting apps can help you get your finances in order and track your monthly spending. While there's no right way to create a budget, there is one right way to use it — consistently and accurately. While I'm happy with my old-school way of budgeting, it doesn't mean it's the right move for you.

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The stock market had quite the November — the best month of 2023. The stock market is inherently unpredictable, and past performance does not always indicate future results. Consider rebalancingAs the stock market surges, some of your investments have grown significantly, potentially skewing your portfolio's balance. The stock market's upward trajectory can create a false sense of security, as profits seem endless. Keep a cash cushionWhile investing in the stock market is a great way to build wealth, it's equally important to maintain an emergency fund.

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The better your credit score, the better your interest rate on a car loan is likely to be. You should look at the monthly cost of the loan, but also the total cost long-term. Before applying for a car loan, it's crucial to check your credit score and take steps to improve it if necessary. It's important to leave room in your budget for unexpected expenses and to avoid becoming financially strained due to excessive car loan payments. A substantial down payment can work wonders in reducing the total cost of your car loan.

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Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Federal student loans come with a variety of benefits that you'll lose out on if you refinance. Federal student loans come with a range of benefits and protections that are not available with private loans. These programs, such as Public Service Loan Forgiveness, provide loan forgiveness after meeting specific criteria. When it comes to refinancing student loans, it's important to be cautious about converting federal loans into private ones.

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I get asked all the time about the possibility of a recession, and I'm telling everyone to prepare. To start, pay off high-interest debt, bulk up your rainy-day reserves, and don't sell your investments. As a financial planner, I often get asked when the next recession is coming. Pay off high-interest debt ASAPThe last thing you want to deal with during a recession is high-interest debt weighing you down. If you really want to take action before any future recession, I would recommend simply revisiting and rebalancing some of your investments.

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A 401(k) is an excellent retirement savings account, but it shouldn't be the only one you choose. Tax diversification in retirement will protect you from changes in tax law and keep money flowing. The benefits of tax diversification in retirementInvesting in both pre- and post-tax retirement accounts gives you the best of both worlds. If you have extra funds available, consider investing next in an after-tax account like a Roth IRA or Roth 401(k). In other words — like the benefits of portfolio diversification, tax diversification reduces your overall risk from tax law changes or other policy changes.

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If you're spending your extra cash right now, it's a good idea to spend it on personal improvement. But deciding what to do with extra cash shouldn't just be about immediate fun if you can help it. And second, if you put the money in a high-yield savings account, it can earn interest. Let the money earn interestIt might take you some time to decide what to do with extra cash. Certified financial planner Jim Eutsler shared that you can park the cash in a high interest rate environment, such as a high-yield savings account or a CD.

Bankruptcies were up 19% year-over-year in January as consumer debt reaches an all-time high. If your problem is poor financial habits, bankruptcy won't automatically fix those for you. Consumer debt — especially credit card debt — is at an all-time high as rising interest rates and high inflation continue to place financial pressure on Americans' budgets. The most common types of bankruptcy for individualsThere are several different types of bankruptcy, but most individuals will file for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy involves selling your assets to get rid of your unsecured debt, like credit card bills.

I'm able to start investing the money for my future, and I cut my tax bill by around $3,500. This included a federal tax bill of around $9,700 and a New York state tax bill of around $3,300. Freelance income often fluctuates year to year, so this type of retirement account is great for meeting that need. All in all, my new tax bill was around $9,400 — with a $7,200 federal bill and a $2,200 New York state bill. If you're a freelancer looking for last-minute ways to reduce your taxes, consider opening up a SEP IRA account before the deadline.

The way you're saving and investing money should change as you get close to retirement. Here's what I think you should be doing with your money right now if retirement is on your horizon. Even if you're getting close to retirement, don't panic — it's never too late to make a plan. Increase your savingsIf you're nearing retirement and haven't been able to save enough already, it's a smart move to start increasing your retirement savings contributions now. But there's no one-size-fits-all retirement savings strategy.

Tax-loss harvesting can save you a significant amount on your taxes, but it requires careful planning. I decided to take action to make the best of a bad situation by pursuing tax-loss harvesting. My taxable income in 2022 was much higher than in years' past, and I was definitely looking for ways to reduce my overall tax burden. I found tax-loss harvesting to be a great strategy for offsetting my capital gains taxes. With careful planning and research, I made the most of my investments and reduced my overall tax burden.

See Insider's picks for the best tax software »Changing tax needs meant a new approach to filingLast year, I filed myself using tax prep software. Though I am a financial planner, I'm not an accountant, and my knowledge of the tax code is much lower than someone who lives and breathes taxes. My accountant was able to find deductions that I never knew existed, meaning I paid far less in taxes than expected. However, depending on the complexity of their finances and their understanding of the process, it may be advantageous to hire an accountant. To me, an accountant was the best money I've ever spent — and I plan to never file my taxes myself again.

When the Federal Reserve cut interest rates, I moved my savings into CDs and corporate bonds. At the time, I kept my emergency savings in a high-yield savings account, with some additional savings in a regular savings account. Pretty soon, my high-yield account stopped seeming so "high-yield," with interest rates dropping from 2.50% to 0.50% over the course of the year. I employed a laddering strategy, spreading my money over a number of CDs with different interest rates and terms. Because of this, I decided to move all of my emergency savings back into my high-yield savings account, so it's all in one place and is more easily accessible.

With inflation high and interest rates on the rise, parking your money in CDs is a big risk. Generally speaking, the longer you leave your money in the bank, the higher interest rate you will receive. Other options — like utilizing mutual funds or even common stocks — can provide higher returns than a certificate of deposit. Better alternatives existAs a financial planner, I always recommend exploring all available options before investing your money. Instead of locking up your money in a CD, consider other methods that produce higher returns and carry less risk.

When it comes to choosing a savings strategy, there is no one-size-fits-all solution. I often revisit and readjust my savings strategy in response to larger economic factors, and I did that a lot during the COVID-19 pandemic. At the time, I kept my emergency savings in a high-yield savings account, with some additional savings in a regular savings account. When reevaluating your own savings strategy, it's important to consider your risk appetite and time horizon. Reevaluating your savings strategy regularly is an important part of maintaining your financial health over time.

Plenty of people experience financial anxiety — me included, and I'm a financial planner. Luckily, years of financial planning have helped me deal with financial anxiety and not let it derail my day (or week). Stay in touch with your moneyThe less you know about or understand your financial situation, the easier it is for financial anxiety to creep in. Creating a financial plan is the key to building confidence in yourself and vanquishing financial anxiety. Some of my worst times of financial stress yielded some of my smartest money decisions, simply because my financial anxiety forced me to review my financial plan again and take action.

A financial planner suggests getting more intentional about purchases and resist the impulse buy. Ask yourself questions like whether you actually need or want it, if you have it already, and if you can afford it. Do I actually need this or want this? If I feel like I need an item, I'll typically write it down. Plus, the time you spend hunting for a better deal may help you discover if you actually need the item or not.

Buy now, pay later programs are ubiquitous, but they make it too easy to spend more than you have. Enter buy now, pay later, a popular financing option that lets you make a small payment up front and walk away with your entire cart. BNPL programs are basically loansThough it goes by another name, buy now, pay later is essentially a type of installment loan. With most BNPL programs, you'd only undergo a soft credit check, and they tend to be more lenient with their approvals. Avoid buy now, pay later.

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