8 steps to financial fitness in 2024!

New Year always brings with it a sense of renewal and opportunity. It’s the perfect time to reflect on the past and set plans in place for what you can do differently or more proactively in the future.  What better goal to prioritise than taking control of your financial future in 2024?

In this blog, we’ll outline 8 practical steps you can consider taking to help you on your journey towards financial fitness in the coming year.

1. Reflect

The first step to taking control of your finances is to understand where you currently stand.  Take stock of your income, outgoings, your debts and your savings.  Review your spending habits from the previous year, identify areas where you can but back and try to allocate more of your budget towards your long-term financial goals.

1. Set clear goals

Without a plan, it’s easy to lose your way.  Define what your short and long-terms financial goals are.  Whether it’s saving for a home or planning for your retirement, having a clear plan will help keep your financial decisions on track.

1. Budget

Outline your monthly income and allocate specific amounts to essential expenses, savings and discretionary spending.  Be realistic about your goals and track your expenses regularly to ensure you stay on course – budgeting apps are really good at helping you with this.

1. Emergency fund

Life can be unpredictable.  Start the year by trying to build up your ‘rainy day fund’ – aim to have 3-6 months’ worth of living expenses in a separate account as a financial safety net.

1. Pay off your debts

If you have outstanding debts, develop a plan to get then paid off.  Prioritise high interest debts first and then consider debt consolidation to help streamline your payments.

1. Invest wisely

Make your money work harder for you by looking at different investment opportunities.  Money in your current account is not always the most effective place for it to be.  Look at possible returns and interest rates based on your own risk tolerance and financial goals.  Consider consulting a financial adviser to help you with developing your investment strategy.

1. Educate yourself

Financial literacy is not something everyone has. Stay informed about investment options available to you and the associated tax implications.  Brush up on your knowledge by attending webinars, reading books or following the money pages in the press to enhance your general understanding to help you make informed decisions. 

1. Review regularly and adjust

Financial planning is not a one off – it’s an ongoing process.  You need to review your budgets, plans and goals regularly to make sure you’re on track. As life is never plain sailing - if your circumstances change, your financial plan should also be altered to accommodate for these blips – it’s an evolving plan that needs to alter with you.

Remember, the journey to financial fitness is a marathon, not a sprint. But with dedication and discipline, you can make this the year you take charge of your financial future. Here’s to a prosperous and financially empowered 2024!

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