9 Ways to Improve Your Finances in 2024 | Family Finances

Is improving your financial health on your list of New Year’s resolutions? Financial security is a goal for many people, but achieving it takes planning and effort. If you want to end 2024 in better financial shape than when you started, setting goals now can help you reach them.

These short- and long-term strategies from experts can help you improve your finances this year.

If you want to improve your finances, whether it’s to smooth your income, increase your net worth, or reach other specific goals, the most important step is to start. However, there are certain financial goals you can set that will lead to better financial health.

These include both short-term goals that can be achieved throughout 2024 and long-term goals that may take several years to achieve.

Orhan Kaikuchan, a certified financial planner and founder of Orhan the Money Doctor, says financial literacy is an important first step. Knowing how money works for you and what you need to do to achieve your goals can actually help you achieve them.

“Spend time reading books and blogs, listening to podcasts, and watching YouTube videos to build your financial competency. Available online, whether it’s on social platforms or the internet in general. “There is a plethora of financial information available, so it’s worth noting that you do your homework and get your information from reliable sources,” Keikchan said in an email.

Short-term goals can help you improve your financial situation this year, and achieving them can give you a sense of accomplishment. According to Kayikchyan, these goals he can achieve within a year and include saving up for small purchases (like a new cell phone or laptop).

Future plans can also be established in a short period of time, even if it takes time to actually achieve the goals you are planning.

Assessing your financial situation at the beginning of the year will help you set any other goals you may need to set, and is an important task to complete on a regular basis.

“In January, you can ensure your financial foundation is secure by reflecting on the past year, taking inventory of your current net worth, and using the insights gained to plan for 2024 and set and execute your next goals. “This is the perfect time to do a financial check-up to make sure you are. Amplify your wealth,” Alyssa Krasner Mayes, founder and financial advisor at Amplify My Wealth, said in an email.

One step you can take, Mays says, is to check your credit score and get a free credit report. That way, you can make sure your information is accurate and know whether you’ll be able to borrow money or reach other goals next year.

“How long it takes to achieve a goal is often determined by how much you need to save for it and how long you have until you achieve it. Timeline for Every Goal ” is essential to achieving a balance between competing goals that may overlap with each other, says Mays.

Perhaps you want to build an emergency fund with six months worth of expenses, take a vacation abroad in the fall, and pay off your credit card debt. Depending on your expendable income, you will likely need to prioritize these and save more aggressively towards his one goal first.

A strong budget is the key to financial health. The new year is a good time to review your spending and make sure your budget is working properly by adjusting it according to your goals.

“Reviewing your spending in 2023 will help you plan your spending for 2024. Create a ‘checklist’ of what’s most important to you, along with your bank account and credit card statements from the past three months. , and ask yourself if what you’re spending your money on is aligned with what’s most meaningful to you,” Mays said.

Once you have your spending in front of you, you can identify areas to cut back on spending to put more cash toward your highest goals.

“It’s important to review your investment asset allocation at least once a year to ensure it’s consistent with your goals, risk tolerance, and time horizon,” Kaikuchan said.

As part of your financial assessment, you should review your retirement plans and other investments.

Adjusting your budget or getting your credit report can be done on a short schedule, but achieving other financial goals will take longer. By taking action now toward these goals, you can improve your financial situation along the way.

An emergency fund is an important tool for financial security, and most experts recommend saving three to six months’ worth of expenses for the unexpected. It may take some time to reach the full amount, but having some money to fall back on is better than having nothing at all.

Start automating the amount you can save each month and transferring it to this account, Mays says.

“The new year is also a good time to increase or adjust your monthly savings for retirement, such as monthly contributions to an IRA or workplace retirement plan,” Keikchan said.

Achieving your retirement goals won’t happen overnight, but increasing your savings can help you reach them faster and ensure you take advantage of compound growth on your investments. Set a goal for how much you want to save each month based on your age, risk tolerance, and desired retirement income.

Carrying debt, especially credit card debt, can cost you a lot of money. If you want to improve your finances and increase your credit score, paying off your debts should always be your top priority. Depending on the amount of debt, it may take him more than a year to get the balance to zero, but regular repayments will reduce it gradually and save you money on interest.

“Financial goals that are often overlooked include leveling up your earning potential,” Mays says.

This may include looking for new job opportunities or ways to bring in extra income. Finding a job may take some time, and some side hustles may take you a little further than breaking even, but starting now can set you up for future success.

“Whether you’re an entrepreneur or a W-2 employee, create or overhaul your LinkedIn, post on LinkedIn for references, network on and off LinkedIn, update your resume, and learn more skills. Please consider acquiring ,” Mays said.

No matter your priorities, larger savings goals will take time to achieve, so starting to put away even a few dollars toward these goals in 2024 can help you get on the right track toward achieving them. Masu.

Improving your financial situation is important, but you don’t have to spend all your time on it.

“I recommend leveraging technology, establishing systems, and automating as many financial tasks as humanly possible, so you can spend your time doing the activities you enjoy most,” Keikchan says. said.

Budgeting apps, automated savings, and working with a financial advisor are all great supplementary tools that can help you improve your finances this year without investing time and effort.