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As the year wraps up, it’s time to reflect on the financial trends and insights that defined 2024. Some were predictable—like high inflation continuing to pinch wallets—but others were genuinely surprising. Let’s dive into some of the unexpected money facts and trends from 2024 and what they mean for your financial future.

High-Yield Savings Accounts Are Back in Fashion

With interest rates climbing, high-yield savings accounts became a household name again, offering APYs of 5% or more. This marked a return to old-fashioned savings strategies as people sought secure ways to grow their money.

What this means for you: If you’re not earning at least 4-5% on your savings, it’s time to switch banks or explore fintech options offering competitive rates.

The Rise of Solo 401ks for Side Hustlers

The freelance and gig economy continued to thrive, and with it came a surge in interest in Solo 401ks. These accounts can allow entrepreneurs to contribute up to $69,000 annually, offering unparalleled tax advantages should they meet the qualifications.

What this means for you: If you’ve got a side hustle, setting up a Solo 401k could help you lower your tax bill while supercharging your retirement savings.

Gen Z’s Surprising Spending Habits

Contrary to the stereotype of frivolous spending, Gen Z made waves this year by prioritizing savings and investments. Many are starting retirement accounts like Roth IRAs in their early 20s and embracing financial literacy through social media and apps.

What this means for you: If you’re young consider taking advantage of your biggest financial asset—time. Small, consistent investments now have potential to grow significantly thanks to compound interest.

AI Revolutionized Financial Planning

This year saw a boom in AI-powered financial tools, helping people budget smarter and automate savings. Platforms like Copilot and ChatGPT showed how AI could simplify complex money decisions.

What this means for you: These tools are a great way to manage the basics of personal finance. AI tools won’t replace a human advisor for complex needs, but they’re excellent for automating the basics of financial management like optimizing your budget or investments.

Inflation’s Unexpected Winners

Inflation didn’t just hit grocery bills and housing costs—it also shaped spending trends. But surprisingly, luxury goods and experiences thrived. People continued to invest in memorable experiences like travel, despite higher costs, and the resale market for luxury items remained strong.

What this means for you: Prioritize your spending on experiences or investments that align with your values. You don’t need to cut back on everything—just focus on what matters most to you.

What’s Happening at Carry?

Here’s what you can expect in the coming weeks

See the full list of events here. ⏰

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If you want more resourceson building wealth as a solopreneur/entrepreneur, check these out:

• The Solo 401k handbook

• The Roth IRA handbook

• The Self-Directed IRA handbook

• The Guide to Paying Less in Taxes

• What is a Solo 401k?

• How to Open a Solo 401k