2024 could be your year to shine! With dedication and the right approach, you can turn this year into a milestone for managing your money better. Since prices for goods and services are on the rise, most people think about working on their financial situation. If you have the right plan in mind, then you will likely be able to improve your finances and have a great year ahead.

In the case that you are the type of person who likes New Year’s resolutions, you probably know how hard it is to stick to them. This is why you should do your best to stay dedicated to your goals.This article will give you tips on different financial resolutions that you can achieve in the next year, in hopes that your life gets less stressful.

What are Your Financial Resolutions for 2024?

As we get settled into 2024, it’s important to make financial goals that are clear and doable. Financial resolutions are not just about saving more money; they’re about smarter money management, understanding your spending, and making strategic decisions that will benefit you in the long run. It may also be wise to speak with a financial advisor, as they are the professionals who can also guide you in better managing your finances. Now, let’s look at a few resolutions to consider as you start this journey:

• Reduce Your Credit Card Debt
• Building an Emergency Safety Net
• Boost Your Savings For Retirement
• Consider Investing More
• Improve Your Credit Score
• Cut Corners In Your Lifestyle

Each of these goals focuses on a part of your finances and can help you get better with money in the new year.

Reduce Your Credit Card Debt

Studies show that 47 percent of credit card holders have debt that follows them from one month to another. So if you have credit card debt, then you might want to consider paying it off as soon as possible, as it might become a challenge to maintain. There are two ways that can help you manage your credit card debt. You can start by paying off your highest debt first and work your way down, which is referred to as the debt avalanche method. Or, you can pay off your smallest debt first and work your way up, which is the debt snowball method. 

Building an Emergency Safety Net

An emergency fund is an important tool for your finances that can help you on a rainy day. If you ever encountered an unexpected issue, then you could use your emergency funds. But, you need to have an emergency fund to use it for emergencies. The new year is a great time for you to start or grow your emergency funds. It is recommended to save three to six months’ worth of living expenses. You should evaluate your spending and find areas that you can save. Then, you can set a savings goal and set up automatic contributions. Eventually, you can increase your contributions with time.

Boost Your Savings For Retirement

You should plan for saving for retirement, since it is one of the most important parts of a good financial plan. You should use the new year to boost or maximize your savings and start setting realistic goals for retirement. Ask yourself where you want to live and how much you want to budget for traveling. There are different ways to boost your retirement savings. If your employer offers a 401(k) match, then you should make sure that you are contributing enough to get the full match. There is another option, where you look into where you are investing your money. You can invest in a diverse portfolio of assets, which can reduce financial risk for you.

Consider Investing More

Do not limit your investments to tax-advantaged retirement contributions. If you have an emergency savings account, then you should consider setting up an investment account for specific goals you have. Additionally, you will likely have better financial returns, if you save in a taxable account too.  Also, you can receive access to the money without any restrictions, sometimes immediately depending on the account type. If you do not know where to start, then you should consider looking into a robo-advisor or a professional. A robo-advisor will automatically invest for you after taking into consideration risk tolerance and ideal earnings. On the other hand, a financial advisor gives you advice that’s just for you while making investment plans that fit your own money goals and life situation.There are quite a few differences between these advisors so make sure to weigh your options.

Improve Your Credit Score

Improving your credit score will give you a better chance to access the financing that you might need. Your credit score can help determine how much interest you will be charged on a loan. As an example, some credit scores are a factor in setting auto insurance rates. You can receive a free credit report on a yearly basis from the three major credit reporting companies. There are some lenders and credit card issuers that can let you know your credit scores, free of charge. If you want to improve your credit score, then you can pay your bills on time and in full. You can also take advantage of score-boosting programs and reduce your credit utilization ratio. Finally, do not apply for new accounts too often.

Cut Corners in Your Lifestyle

To improve your financial situation, you can cut corners in your lifestyle and put money back in your wallet. One of the many things that can affect your budget is buying restaurant food. You can eat at home and cook your meals through meal subscription services. Meal subscription services allow you to pick new recipes every week and deliver your ingredients right to your home. Additionally, you can save money by cooking homemade meals. You can find recipes online and try them out. After trying it out, you can calculate your savings and set extra money aside to repay your debt or grow your emergency funds.

Conclusion

In conclusion, you are responsible for your own financial situation. With the next year coming along, you will be able to achieve your financial goals and improve your financial situation. You can cut corners in your lifestyle and gain more knowledge about personal finance. Additionally, you can diversify your investment portfolio and automate your savings. Keep in mind there are professionals who are willing to help advise you though the financial resolutions mentioned here and others that might be more tailored to your needs. This year, try to make a commitment to not only set these financial goals but to also work hard towards achieving them. With determination and the right approach, 2024 can be the year you take control of your finances and pave the way for a brighter financial future.