Nine financial resolutions for a more prosperous 2024
As 2023 comes to an end, it's time to begin considering your financial resolutions for 2024. It's a fantastic way to take charge of your financial future and work towards accomplishing your goals. If you're unsure how to get started, don't worry, it's pretty straightforward. Follow the tips outlined below, and you'll be on your way in no time!
1. Create a budget
Budgeting is a crucial aspect of financial planning. At Safe Financial, we understand the importance of creating a monthly budget to keep track of your income and expenses. By doing so, you'll be able to better understand where your money is going and subsequently make plans for the future. Remember, failing to plan is planning to fail.
2. Focus on paying off your debts
If you have debts with high-interest rates, such as credit cards, you must prioritise paying them off as soon as possible. Delaying these payments will only lead to accumulating interest, which will increase your financial burden. By paying them off in full as soon as possible, you will have more money on the plus side of your ledger rather than the negative side.
3. Get some financial education
Becoming well-informed is essential for effective money management. It empowers you to make better financial decisions, including investment choices. Fortunately, there are lots of free online resources available that can help you learn and adopt the five fundamental principles of financial literacy, which are:
- Earning
- Saving and investing
- Protecting
- Spending
- Borrowing
4. Set savings goals
Setting savings goals for specific things you want to achieve in the short, mid and long term is a great idea. It's recommended to create separate accounts for each of your goals. For instance, you can set a short-term savings goal to pay your children's school fees, a mid-term goal to save money for a holiday, and a longer-term goal to save for a deposit on your first home. Setting clear savings goals can motivate and focus your financial efforts. Therefore, it's important to create a plan and stick to it.
5. Increase your income
We've published numerous blog posts offering practical tips on how to increase your income, and you might be surprised at how simple it can be. Whether it involves taking up a part-time job, starting a side hustle, or selling items you no longer need, there are countless ways to earn extra money. Generating more income can help you pay off your debts more quickly while boosting your savings and investments.
6. Top up your Super
Putting a little extra into your super account each payday is a smart decision that can yield significant returns in the future. While retirement may seem a long way off for some, contributing a small portion of your gross pay into your superannuation account can easily go unnoticed. For example, if you were to salary sacrifice $25 every week from the age of 20, Canstar reports that you could potentially increase your retirement balance by $81,466 by the time you reach age 67. This is definitely a move worth considering!
7. Cut back on your expenses
If you regularly track your expenses, you may discover some areas where you can reduce your spending. For instance, those $6 cups of coffee you purchase every morning on your way to work could be replaced by homemade coffee, and the $30 you save every week could be directed towards your savings or superannuation fund. By cutting down on unnecessary expenses, you can increase your potential for savings and achieve your financial goals more quickly.
8. Spend mindfully
Adopting mindful spending habits can be very helpful when it comes to reducing your expenses. This involves being aware of your spending patterns and making intentional purchases rather than impulsive ones. Mindful spending promotes thoughtful financial decisions, which can help you to save money in the long run.
9. Check in regularly
It's important to schedule regular check-ins, at least once every quarter, to review your financial progress. This will help you stay on track and make any necessary adjustments. Take a close look at where you are compared to where you planned to be, and don't forget to reward yourself when you reach some of your mini-goals.
Keep It SMART
The key to successful financial resolutions is to set specific, measurable, achievable, relevant, and time-bound (SMART) goals. It's equally important to monitor your progress regularly and be prepared to make adjustments to your plan as your circumstances and objectives change.
And, if your financial situation takes an unexpected nose-dive and you need a little cash boost to see you through, we're here to help. Check out our cash loans of up to $5,000 to find out how quick and easy it is to get the extra funds you need. Once a loan is approved, you can usually expect the cash to be deposited into your bank account within a few hours - allowing you to overcome any obstacles and get back on track.