This January 1st, will you be making any New Year goals?
New Year’s is the perfect time to take stock of the last year, what works and what doesn’t. Perhaps you haven’t met your savings goal yet. Or maybe you are still trying to pay off a debt. No matter your objectives, use the annual motivation to supercharge your personal finances in 2024.
Today, we are looking at popular finance-related New Year’s resolutions to help you plan for the future. We’ve done the research, so you don’t have to. Let’s jump right in.
Set Pocket Money For Each Month
Our first tip might seem counterintuitive to the usual personal finance narrative, but hear us out.
Rather than setting strict no-buy boundaries, set yourself a “pocket money” budget for each month. Take 5 or 10% of your paycheck and allow yourself to spend it freely. This controls your spending and removes the guilt of indulging in non-necessity purchases.
After all, 2024 finance tips don’t have to be restrictive!
Finally Tackle Those Debts
If you have been making the minimum payments on your debts for a while now, this is your sign to tackle them as part of your New Year’s personal finance resolutions. We have lots of guides on being debt-free and living on tight budgets. Use these to start paying off your credit card or loan debts, and you will likely be in a completely new financial space next New Year’s.
Start Your Emergency Fund
Like debts, emergency funds are one of the most talked about topics — for a good reason! These savings accounts help you achieve financial stability by covering last-minute and surprise expenses.
If you are new to personal finance in the UK, an emergency fund should be one of your top priorities. Experts recommend having at least three to six months of living expenses saved up.
So, take your rent, food and utility bill prices and determine how much you would need for six months. It will take a while to save this amount, but the best time to start is the present!
Continue Learning
Though it is not one of the most common New Year’s resolutions, consider adding learning to your list.
Now, we are not talking about studying any old subject. Start learning more about personal finance and how you can build a better financial future. You don’t have to return to school to do this, though. Top options include reading personal finance books and even following experts on social media.
Review Your Current Budgets
Instead of researching new 2024 budget ideas, take a look at how your current budgets are working out. They could be helping you save, but if you are barely sticking to them, it might be a sign to change things up.
The New Year is a great time to pause and reflect on what is working well within your finances and to look at 2024 finance trends. So, set aside a couple of hours, boil a pot of tea and see how your budgets are faring.
The Bottom Line
When deciding on resolutions for the New Year, it is easy to fixate on fitness goals or “Veganuary”. But this year, challenge yourself to put your personal finances first. Bookmark this page so you can come back and check on your goals in the future!
Or start learning more now. View the Cash ASAP blog here.