The start of a new year is often a time for reflection and planning.
It’s an opportunity to reassess our goals and make some changes in our lives. One area where this is especially relevant is finances.
It’s no secret that 2023 was an incredibly difficult year financially, especially due to inflation. But 2024 can be different!
- Top 10 Financial New Year's Resolutions for 2024
- New Year, New Financial Goals to Make in 2024
Setting financial goals and making a plan to achieve them can help you get your money on track and enable you to reach your long-term goals.
Top 10 Financial New Year’s Resolutions for 2024
Every year, millions of people set New Year’s resolutions. Most are short-lived, and few are ever kept. This year, why not make a resolution that will stick?
Here are the top 10 financial New Year’s resolutions that can help you start the new year off on the right foot.
1. Create a Financial Plan
A financial plan can help you identify your financial goals, assess your current financial situation, and create a roadmap for achieving your goals.
● Take Stock of Your Finances
The first step in setting effective financial goals is taking stock of where you are now.
Go over your recent bank statements and look at how much money you are bringing in each month and where it is going out to. This will give you an idea of how much money you have available for savings, investments, and debt repayment.
Writing down all of this information in one place will also help you create a budget that reflects your current financial situation more accurately.
● Set SMART Goals
Once you have a good understanding of your finances, it’s time to set some SMART goals for yourself. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
Goals like “save more money” or “pay off debt” may be well-intentioned, but they lack the structure necessary to be effective.
Instead, try making specific goals with measurable parameters so that you know exactly what success looks like and when it should occur by.
For example: “I will put $100/month into my retirement account,” or “I will pay off my credit card balance by April.”
2. Create a Budget and Stick to It
Starting off the year with a budget can help you get a handle on your financial goals and spending habits.
A budget can help you track your income and expenses and ensure that you’re saving enough money to meet your financial goals.
Consider using a budgeting app or spreadsheet to track your income, expenses, and savings.
Learn More >> Budgeting Tips
3. Start a New Financial Habit
Whether it’s saving a certain percentage of your income, paying your bills on time, or investing in your retirement, starting a new financial habit can help you build a solid foundation for your financial future.
4. Pay Off Debt
Whether it’s credit card debt, student loans, or a mortgage, paying off debt can help you improve your financial situation and reduce your financial stress.
Try your best to get out of credit card debt. Credit card debt can be expensive and stressful, so paying it off can be a top financial priority. Consider using a debt repayment plan or seeking the help of a financial professional.
5. Save More Money
Whether it’s for an emergency fund, a down payment on a house, or retirement, saving more money can help you achieve your financial goals and build financial security.
Build an emergency fund: An emergency fund can help you weather financial storms and prevent you from having to borrow money or charge expenses to a credit card. Aim to save at least three to seven months’ worth of living expenses.
6. Invest in Your Retirement
Whether it’s through a Group RRSP or an Individual RRSP, investing in your retirement can help you build a secure financial future.
RELATED >> 401K VS RRSP
7. Save for Your Children’s Education
If you have children, saving for their education can help you ensure that they have the financial resources they need to succeed.
8. Improve Your Credit Score
A good credit score can help you get approved for loans, credit cards, and mortgages at better rates.
Take steps to improve your credit score by paying your bills on time and reducing your debt.
? Check your credit score for free with Borrowell.
9. Review and Update Your Financial Documents
The start of the new year is a good time to review and update important financial documents, such as your:
- Will and Power of Attorney,
- Insurance policies, and
- Investment portfolio.
10. Learn About Personal Finance
If you’re feeling overwhelmed by your finances or unsure of where to start, consider seeking out financial resources such as a financial planner, a personal finance book, a personal finance blog, or a financial literacy course.
Learning about personal finance can help you make informed financial decisions and reach your goals.
New Year, New Financial Goals to Make in 2024
Charity (Charee) Oisamoje is the founder of TheFinanceKey - TFK. She leads the editorial team, which is comprised of subject-matter experts.
Her professional competencies and expertise make her qualified on this topic. She is an expert at collecting details, verifying facts, and making complex subjects easy to understand.
Backed by Solid Credentials: MBA in Finance Canadian Investment Funds (IFIC) Graduate Masters Degree in International Business Chartered Professional Accountant (CPA) Candidate ✔️Chartered Insurance Professional (CIP) ✔️BSc Accounting
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