5 Essential Financial Resolutions for 2024: A Guide by TheSmartAsset
As the new year unfolds, embracing financial resolutions is a powerful way to motivate yourself toward achieving your aspirations. The journey isn’t always straightforward, but with attainable goals, you can stay driven throughout 2024. TheSmartAsset, your partner in free financial education and connecting you with vetted fiduciary financial advisors, offers these resolutions:
- Embrace Budgeting: Your Financial Roadmap
- How to Succeed: Create a budget by listing your income and expenses, allocating funds for necessities and savings. Regularly track and adjust your budget, utilizing budgeting apps for ease. Celebrate your progress.
- Reduce Spending by 20%
- How to Succeed: Analyze your bank and credit statements to identify non-essential expenses. Distinguish between needs and wants, seek discounts, and adopt a value-focused spending approach.
- Aim to Repay 20% of Your Debt
- How to Succeed: List your debts, focusing on those with high interest. Allocate a part of your income to debt repayment. Consider the snowball method, starting with smaller debts.
- Build a $1,000 Emergency Fund
- How to Succeed: Automate savings to a separate account. Redirect non-essential spending and unexpected income to your emergency fund. Consistency is key.
- Maintain Your Credit Report
- How to Succeed: Annually obtain free credit reports from major bureaus. Review for inaccuracies and dispute any errors. A clean credit report is vital for your financial health.
- Enhance Your Retirement Savings
- How to Succeed: Utilize employer-sponsored plans like 401(k)s, aiming for full employer match. Automate contributions and consult with a financial advisor for optimal investment strategies.
Disclaimer: Investing involves risk, including potential loss of principal. The strategies mentioned may not be suitable for all individuals. TheSmartAsset and its partners provide information for educational purposes only and do not offer investment, financial, legal, or tax advice. Always consult with a qualified financial advisor before making any financial decisions.
