As you set goals for yourself for 2024, prioritize financial planning and goal setting. Starting your year out with a solid financial picture for yourself will set you up for success. Here we will discuss a few key considerations for your financial planning. SHENIX® has the tools, knowledge, and resources to help as you plan for 2024!
This is standard financial advice, and that’s because it’s good advice. Find an app, notebook, spreadsheet, or some kind of system to track your budget. Look at your monthly earnings, spending, and savings for the last few months of 2023. See where you can cut expenses and save more money. Get into the habit of being conscious of your budget when you make purchases and budgeting will become second nature in no time. Be realistic, too. Don’t cut out every bit of enjoyment from your budget, and try not to guilt yourself about the occasional splurge. When you’re budgeting and planning diligently, those occasional splurges shouldn’t become a problem.
2. Know Your Net Worth
Your net worth is the difference between your assets (what you own) and your liabilities (what you owe). This is an important indicator of your overall financial health. To calculate your net worth, make a list of all your assets, including savings accounts, investments, and property. Then, make a list of all your liabilities, including credit card debt, student loans, car loans, and mortgages. Subtract your liabilities from your assets to determine your net worth. Tracking your net worth over time can help you see how your financial situation is improving, and can help you budget accurately each month.
When you’re creating your monthly budget, be sure to set aside money for savings. It’s fun and rewarding to save for vacations or a down payment, but don’t forget to have an emergency savings fund either. One emergency can set you back financially if you are not prepared. Start by setting a savings goal and creating a plan to achieve it. Consider setting up automatic transfers to a savings account each month. When you budget, look for ways to cut back on expenses to free up more money for saving.
It’s important to begin saving for retirement as soon as possible. Even small deposits make a big difference over a long time. Build retirement savings into your monthly budget, and don’t let yourself put it off any longer. You may have an employer who offers 401K matching, or you can set up IRA or Roth IRA accounts and take advantage of tax benefits.
When it comes to making financial decisions, it can feel overwhelming. Don’t let that feeling stop you from planning for your financial well-being. SHENIX® is honored to assist you as you plan for 2024.