From fitness goals to work milestones, a brand-new year brings the opportunity to develop new habits. But as you make your resolutions, don’t forget to factor in your finances. Making changes to your spending, saving and money strategies can not only help eliminate day-to-day stresses, but can also put you in a positive financial position for years to come.
Don’t know where to start? Don’t worry! The Pangea Pros are ready to help you out.
Create a new budget.
As you turn the page of a new calendar year, consider turning the page of a new budget as well. If you’ve never done one before, now is the time to get on track with your spending, and if you do follow a household budget, it could be time to revisit it, as a few things have likely changed since your last version. Perhaps you’ve added a new subscription service, upped your income or cut down on your monthly bills. Regardless, getting on track with your current budget — and making changes where possible — can make a big difference in your financial outlook for 2024.
Pro-tip: Don’t ignore small recurring expenses like a morning coffee from Starbucks or an app subscription. They can add up fast and trimming them out is an easy way to save hundreds a year.
Review your expenses — and adjust accordingly.
As you look to create a budget, start by mapping out all of your monthly expenses. From utilities to subscription services to gas and everything in between, catalog your expenses and determine if there’s any way to edit them down. For example, if your heating bill is high, a few household hacks can help bring it down. If there’s a streaming service you don’t use, think about ditching it. When it comes to groceries, gas, insurance and other essentials, do a little digging to see if you can find cheaper prices or lower rates out there. A deep dive into your monthly budget can often reveal a little extra money with just a few quick tweaks.
Increase Your Savings.
It’s definitely not easy. But making 2024 the year of saving — no matter how much — could give you a leg up on your finances and start developing positive and consistent saving habits. Make it a goal to set aside a little bit of money each month. After your emergency fund is set (more on that below!), put your new nest egg into a high-yield savings account or invest it, then watch your money grow.
Establish an emergency fund.
Life is full of unexpected twists, and unfortunately, many of them have financial consequences. With this in mind, make 2024 the year of the emergency fund. This on-hand cash reserve — which experts recommend should cover at least three to six months of expenses — is designed to cover your budget in the event of an unforeseen job loss, medical issue or other surprise costs. Having an emergency fund accessible ensures that you can move through any crisis moments without too much additional stress.
Improve your credit score.
A good credit score will make all the difference when it comes to securing a mortgage, a car payment, new credit cards or other personal loans. Not only will it be easier to qualify, but you’ll get lower interest rates on loans and possibly score a higher credit limit. Look up your FICO score. If it’s lower than 670, work to raise it by making on-time payments, catching up on past-due balances and ensuring your credit utilization is under 30 percent. Additionally, look through your credit report to make sure there are no errors — and if there are, reach out to have them removed. While it’s not an overnight process, committing to positive credit habits will help improve your financial health down the line. And for a little more info on how to strengthen your score, check out our guide here.
Choose one thing to pay off entirely.
Whether it’s a credit card, a personal loan or other short-term debt, make it a goal to pay at least one of your debts completely off this year. Start with the bill that comes with the highest interest rate, then work to apply more than the minimum payment every month. Once this bill is completely settled, you’ll be able to apply more money to the next loan — and so on, until everything is paid off and you are completely and gloriously debt-free.
Start your retirement savings.
Sure, it’s not fun to set money aside that you won’t be able to spend for decades. But what you’re able to set aside now will likely be essential down the line. Saving for retirement now allows your savings to make as much money as possible as you wait to use it, putting you in a great position when it’s time to wind down your work life and ride off into the sunset.
Boost Your Income.
Getting a side hustle to bring in extra income has never been easier. Thanks to technology, there are plenty of ways to bring in additional funds that allow for flexible scheduling, tap different talents and or allow you to make some money by getting rid of what you don’t even want (we’ve got a whole guide to side hustles here). Or maybe you’re looking for a career boost. Tools like Monster, Glassdoor, and LinkedIn can help you browse the job market so you can see where you are at and plan your next move. For more advice on finding a high paying job, check out our quick guide.
Learn about investing — and start doing it.
You don’t have to be a millionaire to invest. Whether it’s a large, one-time sum; having small amounts pulled out of each paycheck; or even microinvesting — investing tiny amounts similar to spare change — anyone can earn extra money through investments. This year, look into programs, apps and other resources that can make the process simple enough for rookie investors. It’s a simple way to start to earn extra money with the click of a few buttons.
Stick to it!
Now that you’ve set the goals — it’s time to stick to them. While there will most certainly be a financial curveball or two, by taking a few bold steps and developing strong habits, you’re not only putting yourself in a good position to handle them, but ensuring your financial future looks bright well beyond 2024.
