As we embark on a new year, let’s talk about something important – your money. Think of the “2024 Financial To-Do List” as a roadmap, laying out straightforward steps to make your financial journey smoother.
As we step into 2024, it’s crucial to take a moment and reflect on the financial journey of the past year.
Check out what worked and what didn’t, identify patterns that shaped your financial landscape. Don’t go easy on yourself, now is the time to reflect honestly.
Use what you find out to dodge the money hiccups and turn the wins into a game plan for the year ahead.
Making a budget is like building a roadmap for your money. List what you earn, the bills you can’t avoid, and what you spend on extras.
If you’re not sure where your money goes, reaching your goals will be tough. A solid budget helps you handle your money wisely, keeping things stable and helping you reach your goals.
There are a ton of decent budget templates available online such as Verdant Wealth’s free budget planner available here.
Creating a budget is step one, but sticking to it is a whole different game. It’s all about discipline.
Track your spending regularly and make adjustments as needed. Staying committed to your budget not only encourages financial responsibility but also helps cut down on needless expenses, paving the way for healthier money habits.
Plus, there are loads of banking and finance apps out there to make tracking your spending a breeze.
With interest rates rising and rising, explore the option of refinancing your mortgage.
Lower interest rates can lead to significant savings over time. Refinancing could also help reduce monthly payments.
Consult with a lender to determine what options are available to you.
5. Shop around to save:
Whether it’s insurance, utilities, or everyday purchases, shop around for the best deals.
Loyalty can be costly, and a little effort in comparing prices can result in substantial savings. Take extra notice on your fixed bills like water, electricity, gas, internet, and insurance providers – you can compare many of these through a comparison site.
Don’t hesitate to switch providers; it could save you thousands.
To kick a habit, like overspending, switch things up around you. An effective way to do this is through automation.
Make your money move away from your spending accounts by setting up automatic transfers to your savings and investment accounts.
This way, you steadily make progress toward your financial goals without even thinking about it.
Don’t breeze past your superannuation – it’s a big deal! Superannuation stands out as one of the most effective tools for Australians saving for retirement, thanks to its favourable tax rates. Take a moment to assess your contributions and its performance. If it’s not aligning with your financial goals, consider making adjustments.
If superannuation seems confusing or overwhelming, consider seeking guidance from a financial adviser. Ensuring you’re on the right track is fundamental for your financial success.
Take a close look at how your investments are doing. Evaluate the performance and ask yourself if they’re delivering what you expected. Consider diversifying your portfolio to manage risks effectively. Diversifying helps you handle risks better and keeps your financial eggs in more than one basket. Seek professional advice to make informed decisions based on your risk tolerance and financial objectives.
Take a moment to reassess if your emergency fund is adequate. Most households aim for having enough money to cover living expenses for three to six months and keeping the emergency fund in an easy-to-reach account. This helps you stay ready for any surprise’s life might throw your way.
Define clear and achievable financial goals for the coming year. Whether it’s saving for a home, investing in education, or planning a holiday, setting objectives provides direction and motivation for your financial journey in 2024.
Alright, let’s summarise this in simple terms. First, take a look at what happened with your money last year. Then, make a budget. Stick to it, be disciplined, and avoid unnecessary spending. Check if refinancing your mortgage or hunting for deals could save you some bucks.
Don’t forget your superannuation and investments – they’re your money builders, so keep an eye on them. Automate your savings and double-check your emergency funds.
Lastly, set some clear goals for the year ahead. Let’s make your money work for you in 2024!
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Information contained on this website is of a general nature only. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances.We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document.Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.
