The year is winding down, and that means it’s time to think about resolutions for 2024. With interest rates and inflation on the rise, many of us may have financial goals on our minds.
If you’re looking to change your financial circumstances, or hope to meet some money milestones in 2024, making New Year's resolutions can be a powerful first step. Here are 10 financial resolutions—along with tips on how to stick to them—that you should consider for a prosperous 2024. Choose just one or two to work on, and you’ll be surprised at the difference in your life!
1. Create a spending plan or budget
If you struggle sticking to a budget, a spending plan might be a better strategy for you. Spending plans are designed to give you more flexibility and allow you to choose what you spend your money on, instead of restricting what you can’t spend. Either way, when you consistently stick to a plan, it will help you make informed decisions and avoid unnecessary debt.
2. Find ways to save more
One of the easiest ways to build savings is by setting up automated transfers to your savings or investment accounts. This ensures that you consistently contribute to your financial goals without needing to think about it each month. You can also look for ways to dedicate a larger percentage of your budget toward savings, and make sure you’re getting the best interest rates possible.
3. Start an emergency fund
Prioritize building or replenishing your emergency fund. Most experts recommend saving at least $1,000 or three to six months' worth of living expenses in a readily accessible account. This fund acts as a financial safety net in case of unexpected events, providing peace of mind and stability during uncertain times.
4. Pay down debt
Make a commitment to reduce your debt in 2024. Identify high-interest debts and focus on paying them off systematically. Consider creating a debt repayment plan and explore strategies such as debt consolidation or refinancing to streamline your payments and reduce overall interest costs.
5. Learn wise investing habits
If you haven't started investing, now is the time. Investing can help you boost your financial well-being, as it can be a way to outpace inflation and increase your purchasing power. Consult with a financial advisor to determine the best investment strategy based on your financial goals and risk tolerance.
6. Improve your credit score
A healthy credit score is a cornerstone of financial well-being. Commit to improving your credit score in 2024 by taking proactive steps. Obtain a free copy of your credit report from each of the major credit bureaus and review it for inaccuracies. Dispute any errors you find, and pay attention to factors like credit utilization and payment history. Consistently paying bills on time and reducing outstanding debt can contribute significantly to a higher credit score.
7. Update your beneficiaries
Adding a beneficiary to your accounts is critical to ensure your assets go to the person you want to have them. So be sure any accounts or policies, such as bank accounts, life insurance policies, brokerage accounts and retirement accounts reflect your current intentions.
8. Explore ways to earn more
Boosting your income can accelerate your progress towards financial goals. Look for opportunities to earn extra money, whether through a side hustle, freelancing, or leveraging your skills and expertise. Consider your passions and talents—there may be untapped opportunities to turn them into additional income streams.
9. Open a retirement account
Whether it's a 401(k), an Individual Retirement Account (IRA), or a similar retirement savings vehicle, take the steps to start contributing regularly. If your employer offers a matching contribution to your 401(k), strive to contribute enough to maximize this benefit. Remember, the earlier you begin contributing to a retirement account, the more time your investments have to grow.
10. Work with a financial advisor
If you find yourself wanting more guidance or have specific questions about your financial situation, consider making an appointment with one of our experts. Our team of specialists is here to help you navigate your financial journey, and provide tailored advice to meet your unique needs and goals.
CLICK HERE to schedule a complimentary appointment with a Tranont Wealth Specialist today!
Embracing these financial New Year's resolutions can set the stage for a financially successful 2024. Whether you're looking to build wealth, reduce debt, or simply gain better control over your finances, the key is to stay committed and make gradual progress throughout the year.
Here's to a prosperous and financially fulfilling New Year!