Get a head start on your 2024 finances

  • Dec 4, 2023, 13:03 PM

 

 

2023 is ending, and as the new year approaches, it’s time to start your 2024 goals. New Year’s resolutions often come to mind come January with the “new year, new me” mindset, but achieving some of those resolutions often necessitates financial planning.

There are so many ways that you can set yourself up for success in 2024. What’s better than planning ahead so that when January comes around you already have a plan in place? 

Build your budget 

Knowing where your money flows month to month can allow you to grow your savings and plan for the future. Your budget is going to look different from anybody else’s budget, so it is important to think about what you often spend your money on and ways that you can maximize your savings. 

Building your budget allows you to determine what is within your means and what you can save for the future. Remember, it's important to build your budget around your current lifestyle and goals. For example, do you buy yourself a coffee every day? Make sure you note that in your budget. How much do you spend on groceries and how often do you do your grocery shopping? Be sure to include this information along with any recurring payments like utility bills. 

Here is a short list of just SOME things to consider when building your budget. This is not an exhaustive list, but will give you something to get started:

  • housing payments 

  • vehicle payments 

  • insurance premiums  

  • utility bills 

  • subscription services (this includes streaming services like Netflix and Hulu fall into this category as well as things like Spotify premium and any other services that have recurring payments like gym memberships).

  • monthly grocery spending 

  • hobby spending 

  • leisure spending 

Not sure the best way to start building your budget? Here is a free template by Notion.

Now that you have built your budget, it's time to determine your goals for 2024. 

Everybody’s goals are different based on what era of life they are currently in as well as what their current financial situation looks like. To determine your 2024 goals, it is important to first evaluate where you are currently. How much income are you bringing in monthly? What do your bills typically look like? What are your hobbies and how much do they cost? What does your investment portfolio look like as of right now? How does your debt look right now? 

Next, to determine your financial goals for 2024, it’s time to think about your 2024 life goals. Are you finally going to write that book? Are you maybe planning to get married? Expand the family? Buy a home? Start collecting something? Think as big and as small as you would like.  

Be sure to do your research as to what financial commitments your 2024 goals entail so that you can build them into your budget. Here are some examples. 

Are you thinking about getting married in 2024? Here is some information on how much an average wedding costs.

Once you’ve determined your 2024 life goals, it’s time to build them into that budget you’ve built. Evaluate how much you’ve already saved that you might be able to be set aside towards any of your 2024 life goals and how much you can save monthly moving forward. If you are living below your means, some of your income can be set aside for savings that can be used to achieve a variety of personal goals that you might have, as well as set aside in case of emergencies. 

One way to do this is by setting up a Name Your Own savings account to track your progress toward specific savings goals.

If you want to go the extra mile to ensure your financial success in 2024, be sure to schedule a financial one-on-one with one of CAFCU’s Certified Credit Union Financial Counselors for FREE!

Everybody’s goals are a little different and everybody’s paths to achieving those goals will vary. It is important to not compare yourself and your journey to others.  

Time for YOU to make 2024 YOUR year!