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As we approach the new year, setting goals to make 2024 your most successful financial year yet is super important.
Get a head start on improving your finances by checking out this list of 10 New Year’s resolutions.
By setting and sticking to these resolutions, you’ll take significant steps toward achieving financial freedom.
Not only will you be able to develop mindful spending and saving habits, but you’ll also gain a deeper understanding of your financial situation and be better equipped to make informed decisions.
With dedication and consistency, you can build a solid foundation for long-term financial success!
#1. Make A Budget
Creating a budget is a super important resolution for achieving financial freedom.
When you clearly understand where your money goes, improving your financial situation becomes much easier.
One popular budgeting strategy that many people find helpful is the 50-30-20 rule.
According to this rule, you allocate 50% of your income towards covering your basic necessities, like rent, utilities, and groceries.
The next 30% can be for things you want, like dining out, entertainment, or shopping.
You dedicate the remaining 20% to savings, including building an emergency fund and setting money aside for future goals, like buying a house or planning retirement.
By following this budgeting strategy, you can ensure you meet your immediate needs and wants and secure your financial future.
#2. Challenge Yourself
This resolution can feel like a game, so give one of these money saving challenges a try to improve your finances.
The 52-Week Money Challenge is a great way to start.
It involves setting aside an increasing amount of money each week over a year, starting from $1 and gradually increasing until you save $52 in the final week.
Other challenges include the No Spend Month Challenge, where you cut back on nonessential monthly spending, or even the 365-Day Savings Plan, where you save a certain amount every day for a year.
These challenges can help you develop healthy financial habits and get your finances on track for long-term success.
#3. Keep Track Of Your Finances
Creating a budget is much easier with one of the free budget templates you can find online.
You can customize the template according to your personal needs and goals.
There are many options, such as Nerd Wallet’s Monthly Budget Worksheet, The Penny Hoarder, and Mint.
With a budget template, you can set short-term and long-term goals, track your monthly spending, and identify areas where you could save money.
Many of these templates also offer helpful tips on creating a financial plan that works for you.
By creating a budget and consistently monitoring it, you’ll be well on your way to achieving long-term financial success.
#4. Pay Off Debt
Paying off any outstanding debt is a resolution that can boost your financial well-being this year.
It might seem intimidating, but effective strategies and tools are out there to make it more manageable.
Think about negotiating with creditors, setting up automated payment plans, or transferring balances from high-interest accounts to lower ones.
Plus, plenty of personal finance apps like Acorns, Dave Ramsey’s Every Dollar, and Digit can help you track expenses and crush your debt goals effortlessly.
With determination and these innovative resources, you’ll take control of your finances in no time.
#5. Improve Your Credit Score
Remember the importance of boosting your credit score as you make your resolutions.
Your credit score plays a significant role in how lenders see you and the interest rates they offer when you borrow money.
A higher credit score means more financial freedom and better loan options.
It’s worth taking care of your credit score by practicing good financial habits like paying off balances in full and avoiding unnecessary credit inquiries.
Remember to check your credit report regularly to catch and fix any errors that could be dragging your score down.
#6. Automate Savings
Take advantage of this crucial resolution to improve your financial situation in the upcoming year.
One effective strategy to boost your financial security is to automate your savings.
Take advantage of the automated transfer options many banks offer to effortlessly set aside a portion of your monthly income into your savings account.
Doing this allows you to establish a consistent savings habit without constantly monitoring or making decisions.
This simple yet powerful approach can greatly impact your long-term financial well-being.
#7. Set Goals
A simple but essential resolution is to write down your financial goals.
When you visualize your aspirations, you create a clear roadmap.
This clarity helps you stay focused on the positive steps you need to take to turn your dreams into reality.
With a well-defined plan and unwavering dedication, you have the power to take control of your financial future.
Create a comprehensive financial plan tailored to your needs and aspirations, and set yourself up for long-term success and security.
Remember, every small action you take today paves the way for a brighter and more prosperous tomorrow.
#8. Make Investments
Investing is a resolution worth making. It’s easy to put it off, but the sooner you begin, the more you’ll benefit from the power of compound returns.
If you’re new to investing, consider automating investments in low-cost ETFs and index funds.
This approach ensures your money works for you and diversifies your portfolio.
By investing now, you’re setting yourself up for future financial success!
Investing in your future is one of the most crucial financial decisions.
With a well-crafted financial plan and regular investments, you can take control of your financial destiny and establish lasting security.
Start as soon as possible – even small steps towards investing today will yield significant rewards in the future.
#9. Small Changes
Making small changes in your life may not seem like a big deal at first, but trust me; it can be one of the most powerful resolutions to set yourself up for success.
How about increasing your monthly savings rate by 1% or skipping those pricey coffee and lunch outings?
These little adjustments add up and speed up your progress toward your goals.
Try carpooling or taking the bus instead of driving everywhere, and cancel any subscriptions you don’t even use anymore to save even more.
By adopting these small habits, you’ll see a significant improvement in your financial situation over time.
So go ahead, plan wisely, and put in the effort, and you’ll secure a prosperous future with lasting wealth and peace of mind.
#10. Make More Money
To achieve financial success, it’s crucial to resolve to increase your income.
Whether through a side hustle or negotiating for a raise, boosting your earnings is a super effective way to improve your financial situation.
Take some time to research your profession’s current market value and ensure you’re getting paid what you deserve.
Also, consider exploring the possibilities of starting an online business or finding ways to make money from your passions and hobbies.
With dedication and smart planning, reaching higher income levels can be a goal you can achieve.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
Visit my About Me page to learn more about me and why I am your trusted personal finance expert.