Creating a Financial Roadmap For the New Year

Your guide to making smart financial resolutions in 2024 for better financial security for years to come

Each new year is brimming with opportunities to reshape our financial destinies, and 2024 is no exception. As we step into this new chapter, envision a canvas where your financial dreams take shape and every decision steers you towards stability and abundance. 

Year after year, the top financial resolutions tend to remain the same: save more money, spend less money, and pay off debt. Let’s take a look at a few ways you can set some healthy financial resolutions for yourself in 2024!

5 Resolutions To Help Save More Money In 2024

Create a savings roadmap for 2024 to help you reach your savings goals

In a world where financial stability is synonymous with peace of mind, it’s no wonder why saving money is one of the most common financial goals in each new year. Whether it’s for that dream vacation, a safety net for unexpected curveballs, or the serenity of knowing you’re prepared for the future, the reasons to save are as diverse as our aspirations. 

Now, let’s dive into strategies that not only help us save but also empower us to turn these aspirations into reality:

1. Set realistic goals – Define what you’re saving for, be it an emergency fund, a big purchase, or a vacation, how much you need to save for it, and how much time you have to save. Whatever it is, set a goal that’s not just a mirage but an actual, achievable goal. 
2. Create a budget – You should think of your budget as a GPS. Your budget navigates you toward your savings goals and can help you recalculate the route if you get sidetracked. Look over your 2023 spending habits and consider what changes you may need to make to reach your goals. Make sure to revisit your budget and tweak it from time to time to align your budget with your day-to-day habits.
3. Make the most of your savings – Not all savings accounts are created equal. If your goal is to set money aside for your emergency fund, a high-yield savings account might be the best option for you as it will give you the best return on your investments with time and it allows you to easily access your money. Now, if your goal is to set money aside for something like a college fund, a UGMA investment account might be a better option since it has certain tax advantages that may help you out in the long run. Do some research on the best accounts and choose savings accounts tailored to your goals. 
4. Find money-saving alternatives – Here’s where creativity meets financial sense. This year, challenge yourself to find cost-effective alternatives to the products and services you use that won’t diminish quality.  Swap expensive brands for more affordable alternatives. Try finding ways to reuse or repurpose some of your items. Saving money while being eco-conscious? It’s a win-win!
5. Avoid lifestyle inflation – Your income might hit a growth spurt this year, but don’t let your lifestyle inflate with it. Commit to keeping your expenses in check and funnel that extra cash into your savings accounts. 

5 Resolutions To Help Spend Less Money In 2024

Spend less on what you don’t need and put more money back into your wallet in 2025 

The allure of spending often masks our true needs, and the art of spending less feels like a huge challenge. Imagine stepping into the new year with a newfound sense of financial liberation—one in which every purchase is intentional. This year, let’s introduce some resolutions and lifestyle changes that not only tighten our budget strings but also unlock a world of opportunities. 

1. Trim excessive spending – Take some time to sit down and audit all of your subscriptions and memberships. Bid farewell to the subscriptions that you don’t use or add little value to your day-to-day life. Rethink all of your non-essential purchases and get realistic with yourself about cutting back on what you don’t need. 
2. Spend your money mindfully – Pause, take a breath, and think before swiping that card. Ask yourself, “Is this purchase a need or a want?” It’s a small question, but it has a big impact. Make sure your expenses align with your true needs and values by spending mindfully.
3. Try cash envelopes – Having digital control over our money is sometimes too convenient and it can lead to overspending. Try a tactile approach with cash envelopes. Take out cash for the month and allocate it into different categories for discretionary spending. When the envelope is empty, that’s your signal that your budget is spent for the month. While it’s an old-school trick, spending with cash envelopes work wonders to help curb excessive spending. 
4. Hunt for discounts – When you must spend money, make sure you’re doing your due diligence to search for discounts and find the best price possible. Small savings here and there add up significantly. 
5. Negotiate your rates – You may be paying more than you need for some of your essential services, like internet or insurance. Contact your service providers and negotiate better rates for your services. A simple conversation can lead to substantial savings, or you may even find that you can get a better rate with a different company. 

5 Resolutions To Help Pay Off Debt In 2024

Make a smart debt repayment strategy for 2024 to start making strides toward a debt-free lifestyle

Stepping into 2024 with a clear roadmap towards debt-free living isn’t just a resolution—it’s a commitment to financial freedom and security. It’s time to reclaim your financial control, rid yourself of high-interest rates, and create a future unencumbered by debt. Let’s talk about a few strategies you can employ this year to help you pay off your debt:

1. Prioritize your debts – Create a comprehensive list of your debts, including the balances and interest rates. Categorize your debts based on these rates and determine which you should focus on paying off first. There are a few different debt repayment strategies you may consider, but paying your highest-interest debt first while paying the minimum on your other debts can help you save lots of money on interest. 
2. Make more than your minimum payment – Paying the minimum might keep creditors at bay, but it won’t pave the road to debt-free living swiftly. Aim to allocate more than the minimum payment on your debts when possible. Every extra dollar you throw at your debts accelerates your progress. 
3. Leverage your bonuses wisely – Instead of splurging after you get a bonus or a tax refund, channel these financial blessings directly toward your debts. As tempting as it may be to treat yourself, your extra money will go a lot longer when spent wisely. It’s not just about the money saved in interest—it’s about your peace of mind, too.
4. Set milestones for yourself – Repaying debt is a marathon, not a sprint. Set achievable milestones in your repayment journey. Each paid-off debt, regardless of its size, is a victory. Celebrate your milestones and acknowledge the progress made. Use it as fuel for your motivation to stick with your plan!
5. Avoid accruing new debt – Paying down debt is a challenge on its own, but when you add even more debt to the picture, it becomes even harder to envision a debt-free future. Transition from credit to cash or debit, leaving credit cards for emergencies as you make a shift toward tangible currencies. It’s not only about avoiding new debt; it’s about rewiring your financial habits and your lifestyle. Consider working with a financial advisor or a debt counselor if necessary. They can provide personalized strategies to expedite your debt repayment and offer ongoing support and advice. 

These resolutions—saving more, spending less, and repaying debt—aren’t just checkboxes on a to-do list; they’re lifestyle changes that can guide you to a brighter financial future. By committing to some resolutions in 2024, you will become much more disciplined and intentional with your finances. The strides we take today—whether it’s stashing away some extra money, making mindful purchases, or chipping away at debts—are the building blocks of your financial future.