Reconsider Your Resolutions

by Kimberley Roberson

January brings with it the tradition of setting resolutions.  Our resolutions often focus on health or career goals. However, what if you set your goals on an often-neglected aspect: financial health. In 2024, let’s pivot our resolutions towards a mantra of ‘live better financially.’ In doing so, we set the stage for lasting financial stability.

So, how does one live out this mantra of ‘live better financially?’ Where to start?

Begin by asking: What is Your Financial Situation?
Assess your financial health. This is an important first step.  Understand your income, expenses, debts, and savings. Small, unnoticed expenditures and ignored debts can impede our financial wellness.  Forgotten subscriptions, food delivery costs and hidden fees can often be overlooked making a big impact on your finances.  Utilize budgeting apps or simple spreadsheets to track spending patterns and pinpoint areas for improvement.

Set Realistic Goals
Setting achievable, realistic goals will increase your success rate. Whether it’s reducing debt, increasing savings, or managing expenses better, the goal should steer you towards a future where you live better financially. Place reminders all over your home, in your car, at your work- Keeping your financial goal ever-present will help with decision fatigue.

Once you have assessed your finances and set specific goals, there are a few tools to get you started:

Budgeting: The Underrated Tool
At the heart of  financial wellness is a well-planned budget. A budget that is not so restrictive it becomes undoable, but one that makes conscious choices.  Allocate funds sensibly, covering necessities, savings, and play. As life changes, adjust your budget. When changes are necessary, keep the mantra: ‘live better financially,’ in focus.

Emergency Funds: The Safety Tool
Once the budget is in place and consistent the second phase of ‘live better financially’ is the Emergency Fund. We all know an emergency fund is vital for unforeseen moments in life. Aim to save enough to cover several months of living expenses, ensuring this safety net is in place. This could even be part of your budget process. A small amount of money allotted to the emergency fund overtime makes a big difference.

Investing: The Power Tool
Investing is a powerful tool to grow your wealth and live better. It’s not exclusive to the affluent; everyone can start small. Understanding various investment avenues can significantly aid in securing your future.

Debt Management: The Supervision Tool
Managing debts is critical to live better financially. Focus on high-interest debts first and explore options like debt consolidation. Practicing debt management diligently is essential to live better without the burden of financial strain.

Continuous Learning: The Literacy Tool
The financial world is dynamic, and staying informed is key. Engage in continual learning through reading, podcasts, courses, or blogs. Adapting to changes and updating your financial strategies are vital steps to living out the ‘live better financially’ mantra.

Celebrate: The Joyous Tool
Acknowledge and celebrate every financial milestone, no matter how small. These celebrations reinforce your motivation to keep going on your financial journey. Pace yourself and remember it is a journey; a lifestyle of living better financially.

Ultimately, reshaping your resolutions to focus on financial health is a step towards a more secure, stress-free life. It’s about making informed decisions, setting realistic goals, and embracing a lifestyle where every financial choice is geared towards helping you live better.

Happy New Year!