Boost Your Finances: Strategies to Help You Reach Your Money Goals in 2024
It was a year of ups and downs in the financial world in 2023, with high inflation and record highs on credit card interest rates matched with dwindling wallets and waning savings accounts. If taking control of your finances is one of your goals for 2024, there’s no time like the present to get started. Here are some strategies to help you reach your money goals.
1. Make a Money-Savvy Resolution You Can Stick To
Not surprisingly, 48% of Americans have money-saving New Year’s resolutions, as reported in an Allianz survey. Brian Eder, founder and partner at Voyage Wealth Architects, encourages people to “not judge what may have happened or didn’t and think proactively about what you might be able to learn and apply to the future.” Whether your goal is to reduce spending, save more money or get a better handle on your finances, figure out a resolution you’re serious about and start taking steps to make it happen.
2. Use Cash Whenever Possible
Eder also recommends the all-cash strategy: “You literally take out a pile of cash for the month and you go through it. When you have to hand that cash over at the checkout, you think very differently about those purchases. Every time we do this, it results in probably a third to 40% less spending in a month.”
Jordan Cully from South Minneapolis has adopted this idea to great effect. “I’m trying to save. Budgeting is horrible for me. That’s the thing…Inflation is really bad but part of it is taking accountability.” Cully uses what’s known as the 100-day envelope challenge to get better at budgeting – “every time I get cash, say I have $50, I’ll put $5 in the $5 envelope and then $10 in the $10 envelope and kind of save up.”
3. Take the Time to Track Your Transactions and Budget
Eder emphasizes the need to “download the transactions and go through them one by one and make them into categories.” This can enable you to identify where your money is going and make the necessary changes to stay on track. Though it can seem tedious, it’s a necessary step to strengthen your finances.
4. Review Your Insurance Policies
Another key step is to review your insurance policies. Eder suggests, “What are my deductibles? What are my limitations? If you’re not sure, it’s OK to reach out to your agent and request a review meeting or go find an agent that can help you.”
5. Live Within Your Means
Finally, Eder has one surefire strategy for handling your finances in 2024: “learn to live within your means. It’s by far the best piece of advice I think anyone can ever give.”
Eder also outlines some common mistakes to avoid when trying to improve your personal finances – setting unrealistic goals, forgetting about them, and not taking advantage of IRS limits for 401Ks and profit-sharing plans.
Laying the groundwork now can help start you off on the right foot for the new year. Follow these strategies to help maximize your money and reach your financial goals in 2024.