Kent Patrick: New year, new financial goals
Published 3:32 pm Monday, December 23, 2024
As we usher in the New Year, it’s the perfect time to reflect on the past year and set our sights on new financial goals. Whether you’re looking to pay down debt, boost your savings, or plan for retirement, the start of a new year offers a fresh opportunity to take control of your financial future. Here are some key financial tips to help you make 2024 your most successful year yet.
1. Start with a Financial Check-Up
Before diving into new goals, take some time to assess your current financial situation. Review your income, expenses, savings, and investments. Are you on track with your goals? Are there areas where you can cut back or improve? A thorough financial check-up will give you a clearer picture of where you stand and where to focus your efforts in 2024.
2. Set Clear, Achievable Goals
Setting clear financial goals is the foundation of any successful plan. Whether your objectives are short-term (like building an emergency fund) or long-term (like saving for retirement), make sure they are specific, measurable, and achievable. For example, rather than setting a vague goal of “save more money,” define a concrete goal like “save $5,000 for an emergency fund by the end of 2024.” This will give you direction and make it easier to track your progress.
3. Create or Reevaluate Your Budget
A realistic budget is a key tool in managing your finances. If you don’t have one, now is the time to create it. Start by tracking your monthly income and expenses, and make adjustments as needed. Identify areas where you can cut back, such as dining out or subscriptions you no longer use. If you already have a budget, review it to ensure it aligns with your current goals and lifestyle. Don’t forget to include savings as a “fixed expense” in your budget.
4. Pay Down Debt Strategically
If you have high-interest debt, such as credit card balances, focus on paying it down as quickly as possible. High-interest debt can prevent you from building wealth, so tackling it early in the year can have a significant impact. Consider using the debt avalanche method (paying off the highest interest debt first) or the debt snowball method (starting with the smallest debt) to stay motivated.
5. Prioritize Saving for the Future
Saving for the future is one of the most important things you can do for your financial well-being. Start by building an emergency fund with enough savings to cover three to six months of living expenses. Once that’s established, focus on contributing to retirement accounts like a 401(k) or an IRA. The earlier you start saving, the more time your money has to grow. Even small contributions can add up over time thanks to compound interest.
6. Review Your Investments
The beginning of the year is an excellent time to review your investment portfolio. Check whether your asset allocation aligns with your risk tolerance and long-term goals. If there have been changes in your life—such as a change in income, a new job, or a major life event—adjust your portfolio to reflect these shifts. If you don’t have an investment strategy in place, consider speaking with a financial advisor to help you get started.
7. Take Advantage of Tax-Advantaged Accounts
Tax season may seem far off, but the earlier you plan, the better. Contributing to tax-advantaged accounts like an IRA, 401(k), or HSA can help reduce your taxable income for the year. If you haven’t yet maxed out your contributions for 2023, consider making a contribution before the tax filing deadline in April. A good tax strategy can help you save money and grow your wealth.
8. Automate Your Savings and Payments
One of the easiest ways to stay on track with your financial goals is by automating savings and payments. Set up automatic transfers to your savings account, retirement funds, or debt repayment plan. Automating your finances ensures that you stay disciplined, even when life gets busy.
10. Seek Professional Advice
If you feel overwhelmed by the prospect of managing your finances, don’t hesitate to seek advice from a financial professional. A financial advisor can help you create a personalized plan, optimize your investments, and ensure you’re on track to meet your financial goals. Having an expert in your corner can make all the difference in achieving long-term financial success.
Conclusion
The New Year is an ideal time to reset and take charge of your financial future. With careful planning, discipline, and a focus on your goals, 2025 can be the year you make significant strides toward financial security and independence. Remember, even small steps can lead to big results, and every positive financial decision you make now will pay off in the years to come.
Wishing you a prosperous and financially successful 2025!
This information should not be construed by any client or prospective client as the rendering of personalized investment advice. For more information, please visit BushWealth.com for our full disclosures.
Kent Patrick is with Bush Wealth Management.