New Year’s Resolutions: Financial Goals & Tips for 2024November 21, 2023
New year resolutions seem like a great idea… until about the second week of January! Feelings of ambition and determination are often quickly replaced by lethargy and doubt, but it doesn’t have to be that way! Here are a few new year financial tips to help you stay on track with your goals in 2024.
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What is a good new year’s resolution?
For many, it’s a goal to improve health, wealth, and happiness. And goals are important. Goals keep us motivated and moving forward. If you’re still unsure about what your goals should be, here are a few ideas to inspire you with links to further reading so you can get fully informed.
Once you choose the resolution that’s right for you, we’ve also got a few tips that will help you stay on track to reach your goals in the new year!
Need a new year financial goal inspiration?
What short-term personal finance goals can you work on in 2024? Here are a few popular ideas that are more than achievable with the right tools and mindset:
1. I’m going to make more money.
If you want to become a bigger earner, the internet is the first place you should be looking. No matter what your talents are, there’s demand for it somewhere. The Art of the Side Hustle is a quick-but-comprehensive guide that sheds light on all the ways you can earn some extra cash in the new year.
2. I’m going to get out of debt.
Are ready to dig yourself out of debt? When it comes to better money management a little education goes a long way. Debt reduction requires a little planning and strategy, but we’ve got you covered. With this comprehensive guide, we’ll show you how you can cut down your debt load, choose which debt to pay off first, and maybe turn that debt boulder into a pebble.
Maybe you want to learn more about how a debt consolidation loan can relieve some of your financial worries? Or, if credit card debt is your biggest problem, a balance transfer card is another powerful solution you should consider.
Student loan debt can be like a nagging voice in your head. Just when you start to earn your own money and are tempted to splurge some cash, thoughts of your outstanding student loan balance always come along to dampen your purchasing plans. Well, it’s time to silence the nagging for good! We compiled 5 powerful strategies to help you say goodbye to student debt forever!
3. I’m going to start saving more.
If debt isn’t an issue, good for you! On the other hand, it’s just as stressful living paycheck to paycheck. Why not focus on growing your nest egg?
When it comes to saving, don’t underestimate the power of habit. In a few weeks, you can train yourself to be an exceptional saver trained in the science of frugality.
Tracking your expenses should be a big part of your saving routine where you take the time to understand exactly where your money is going. For example, you might be surprised at how much money you spend eating out every month. If that’s the case, the decision to spend more time in the kitchen is a worthy investment. Preparing your own lunches and dinners instead of frequenting restaurants and bars can save you a small fortune over the course of 12 months.
But it’s hard to stay motivated without goals; you need to know what you’re saving for. It could be:
- An emergency fund: It’s good to prepare for the worst-case scenario. It’s better to have an emergency fund and not need it than to need one and not have it!
- A down payment for a house: The motivation to get on the property ladder is all some people need.
- Retirement: It’s never too late to start saving for retirement, and it’s a highly advisable long-term savings plan. Remember, there are excellent tax breaks to take advantage of. And if you do master the art of saving, you might even be able to enjoy early retirement!
Pro Tip: When you’re building your saving skills, it’s always a good idea to have a few simple tools at your disposal—such as budget apps.
4. I’m going to travel.
The end of a year often finds us tired and weary as we look back at the last 12 months and wonder where the time went.
Don’t let another year slip by without going somewhere you’ve never been before!
Great travel deals are out there, so if you see a bargain, don’t let it slip through your fingers. We offer insights on all the ways you can save for and fund your next adventure.
5. I’m going to renovate my home.
Nothing says “new year, new me” like a premium home upgrade. You’d be surprised at how a few small jobs can help you save money AND raise your home’s value.
For example, you can lower your bills and reduce your energy footprint with better insulation. Therefore, a home renovation is an investment. If you don’t have the money to pay for a home reno at the moment, the right home renovation loan can help you make that investment sooner rather than later.
6. I’m going to raise my credit score
Your credit score impacts you in more ways than one. Better interest rates and higher chances of loan approval are just a couple of reasons why it’s wise to know your credit score and make sure it’s in good health.
If your credit is less-than-perfect, the good news is, your credit score isn’t a static number and bad credit doesn’t have to stay bad for long. With a little education and the right credit solutions, you can have a good credit score faster than you think.
If you have no credit history, it’s all about getting your foot in the door. You’ve got to establish a reputation of being trustworthy to lenders such as banks and credit card companies.
Since you are unknown to lenders, you are a risk! Don’t worry, you have options. Get the ball rolling today and start building a positive credit history with entry-level credit solutions like a secured credit card or credit-builder loan.
How to set financial goals and achieve them
Staying on track with your financial resolutions.
A. Write it down and commit
Journal your plans in detail and display them somewhere you’ll see them every day. Humans are very fickle when it comes to changing their behaviours and being consistent with their intentions. Life tends to get in the way, but don’t lose sight of your goals. There’s a better chance you’ll remember your goals when you write them down. And when your priorities are top of mind, there’s less chance of a slip up or reversion to old habits.
B. Dream big but plan every step
It’s okay to be ambitious about your resolution, but remember, a goal without a plan is just a wish. But big dreams should be broken down into actionable, bite-size steps. Think in terms of long-term, medium-term, and short-term goals. This will make the path to progress and achievement clear.
C. Do something EVERY DAY
You should work on your resolution every day, even if it’s just a few minutes. Consistency is key to progress and building good habits. With daily momentum, achieving just gets easier.
Where to Put Your Money in 2024
When it comes to saving, there are plenty of different ways to do so. The new year is the perfect time to take control of your financial well-being. One of the ways to do this is by investing in different asset classes. You can get investment advice from an advisor on different investment strategies to build your investment portfolio. Investing allows you to save money while earning money. That said, there’s always a risk so it isn’t for everyone.
If you aren’t comfortable with investing and want to save, you can start by opening a savings account. If you have a hard time saving, a good idea is to set up automatic transfers to your savings account on your pay days. This allows you to put money away without thinking about it, and reach your savings goals faster. Whether you want to save for something specific, or create an emergency fund, it’s always a good idea to have some extra money put away.
Canada’s Inflation Rate in 2024
Throughout 2023 Canada’s inflation rate has slowly started to drop. It’s predicted, by financial experts, to drop to 3.5% by mid 2024 and then reach the target 2% by 2025. This means that there should be some relief when it comes to the cost of living expenses, managing debt and where interest rates sit in Canada.
What to Financially Plan for in 2024
What your financial goals are in 2024 will depend on your current financial plans and financial stability. That said, a good place to start is by paying of your high interest debt. If you prioritize paying this first and limit non-essential spending, you can create a solid financial plan and pay off your debt effectively.
Another way to add to a solid financial plan is to create or adjust retirement accounts. Take a look at your risk tolerance and see how those affect you long term. You want to be sure that you have effective financial planning, not only for your current financial situation, but for your future financial journey and financial stability.
Reach your 2024 goals with Spring
Spring Financial serves Canadians facing all types of credit situations with practical advice and credit-building solutions. We also offer quick-and-easy secured and unsecured installment loans to help you take those first steps to a better financial future. Apply today to see how we can help!