It’s never too late to turn over a new financial leaf – whether it’s the new year or not.
Reflecting on our financial goals and the habits we need to put in place to reach them should be a regular date in our yearly diary.
Strengthening your financial health takes a little time and effort but the rewards could be there for you in 2024.
Here’s our comprehensive guide to some of the key resolutions you might like to consider.
CONSOLIDATE & PAY OFF YOUR DEBT
The is an important first step, and it’s essential you tackle it before making any other changes, as the interest you’re paying on debt will likely be substantially more than interest you receive on any money you are saving.
BUDGET FOR SUCCESS
Utilise the spreadsheet or get into online tools or apps to track your ongoing spending and set yourself some realistic goals for the year. It’s also a good idea to allocate money every month into an emergency fund in case of unexpected expenses.
PRIORITISE SAVINGS
Be bold and set ambitious savings goals for the year, whether it’s for a major purchase, emergency fund, or future investments. You could establish a dedicated savings account or investment app and set up contributions to ensure consistency. Or you could ‘round up’ every week or even every day, transferring small change into savings to keep your current account in neat numbers ending in 0.
Consider opening a tax-efficient Individual Savings Account (ISA) to maximise returns and take advantage of tax-free savings. Interest rates are still good at the moment – if you’ve used up your £20,000 ISA allowance for the year you could also lock in to a higher interest rate on a regular savings account.
BOOST YOUR RETIREMENT SAVINGS
If you have access to a workplace pension scheme, ensure you are maximising its benefits. Employer contributions will rise in line with yours, up to a certain level – usually between 6 and 10%. This means effectively free money on top of your salary and can be a significant boost your retirement savings.
Review your pension contributions and consider increasing them to align with your long-term retirement goals. Regularly monitoring of your pension performance is a good yearly goal to put in place, then you can make any adjustments needed at an early stage.
REVIEW YOUR SAVINGS & RETIREMENT
You should evaluate the performance of your existing savings and investments at least once a year – and make a note when fixed term accounts are ending so they don’t automatically move into lower rate accounts without you noticing.
Assess the risk and return profile of your investment portfolio and make adjustments based on your financial goals and risk tolerance – this is best done with the help of a financial advisor.
UPSKILL YOUR FINANCIAL KNOWLEDGE
Commit to expanding your financial knowledge in 2024. Although it might seem complicated or even boring from the outside, there are plenty of well-informed, interesting podcasts, websites and social media accounts that make it straightforward.
You might also consider attending seminars, webinars, or workshops to boost your understanding of various investment options. A well-informed investor is better equipped to make sound financial decisions.
UPDATE THE BENEFICIARIES IN YOUR PENSION
Life circumstances change, and it’s essential to ensure that your pension beneficiaries are up-to-date. Private pension providers will ensure the money, or a percentage of it, will go to your loved one in the event of your death.
Review and update beneficiary designations whenever there are changes to your personal life, including marriage, divorce, bereavement or the birth of children. This ensures that your pension benefits are distributed according to your wishes.
REVIEW YOUR WILL
A Will is a crucial component of estate planning. A regular review should take in to account changes in your family structure, assets, or wishes. Ensure that your loved ones are adequately provided for and that your estate is distributed according to your preferences.
SET SMART GOALS FOR THE YEAR
SEE YOUR FINANCIAL ADVISER
Even the best-informed investor won’t have the same inside and over-view of the markets and how to increase your wealth as a financial adviser. Tell them your goals and predicted life milestones, and they’ll give you a realistic picture of how things might look, and how to make changes.
The start of a new year provides a perfect opportunity to take control of your financial future – and even if we’ve left January 1 behind us, it’s never too late. It takes a little thought, work and time, but you can pave the way for a financially secure and prosperous 2024. Remember, each financial decision you make today contributes to a more resilient and prosperous tomorrow.
