Entering 2024, promises of healthier habits and new adventures surround us, though statistics predict their fleeting nature. Sadly, a large percentage of people will abandon their goals before the end of January.
That’s why it’s important to commit wholeheartedly to maintaining your financial resolutions for the new year.
At First Financial, we understand the fast pace of life. Regardless of your life stage, it’s easy for goals to slip, due to time constraints or fatigue. While adjusting personal goals is acceptable, some are non-negotiable and form the foundation of your future. Here are five essential financial resolutions for you to make (and keep) this year.
#1 - Create a comprehensive budget
Despite the increasing cost of living, a significant number of Australians still don’t adhere to a budget. Setting a budget goes beyond saving or cutting expenses. It’s a mindset. Categorise it realistically based on your financial priorities. Whether saving for a first home or downsizing for retirement, an organised approach fosters disciplined financial behaviour.
If you need to trim expenses, track every spending detail. Evaluate if expenses are essential or discretionary. Identify areas for potential reduction and reallocate funds to align with your priorities. Informed decision-making hinges on a comprehensive understanding of your spending habits.
Even the best budgets require a degree of flexibility due to life’s unpredictability. Circumstances change, unexpected events happen, and you must respond appropriately. Regularly review and adjust your budget to stay in tune with your evolving needs.
#2 - Implement a debt reduction strategy
Finder’s recent study revealed that the average Australian carries over $20,000 in personal debt. A noble financial goal for 2024 would be to reduce personal debt. Start by targeting high-interest debts first, employing a strategic repayment plan tailored to your financial capacity. Whether your debt is large or small, focusing on reduction will contribute to long-term financial wellbeing.
This may also be a good opportunity to consider your options to consolidate or refinance high-interest debts into lower-rate alternatives. Not only will this simplify payments, it can potentially reduce interest costs. Be careful to research terms and conditions, and if in doubt, speak with your friendly financial adviser.
After assessing your position and priorities, create a repayment plan. A clear strategy keeps you focused and motivated. Regularly review and track progress, making adjustments as necessary, much like managing your budget.
#3 - Build and diversify your investment portfolio
Whether starting or expanding, now is the best time to fine-tune your investment portfolio. With thousands of options, how do you make the right choices? First Financial offers a unique process and philosophy to ensure your investments are on the right track from the beginning.
Constructing your investment portfolio is vital for building wealth, and it’s not a matter of luck. It’s not a set-and-forget process. Consult with a financial adviser to identify growth opportunities and guarantee your investments align with your long-term objectives.
At First Financial, we implement a long-term strategy and closely monitor it. Our approach includes offering market intelligence and sound financial advice, empowering you to make informed decisions that consider your investment profile, personal ethics and goals.
#4 - Review and update your insurance coverage
Having worked hard for your financial accomplishments, protecting your wealth and loved ones with insurance is crucial. Consider reviewing your insurance coverage as part of your new year’s resolutions. Adequate insurance ensures financial stability during unexpected challenges. Whether it’s health, life, business, property or income protection insurance, the right coverage means you don’t compromise your financial security in difficult times.
Maintaining the right coverage entails regular reviews, especially during significant life changes like marriage, the birth of a child or shifts in employment. These events directly affect your insurance needs.
A critical aspect of this process involves a comprehensive understanding of your policy terms and exclusions, enabling you to make well-informed decisions about your coverage.
#5 - Make personal and professional development a priority
Prioritising personal and professional development for the new year is a worthy financial resolution. It not only enhances earning potential but also paves the way for a fulfilling professional journey, recognising that our income shapes wealth.
Commit to continuous learning and consider attending workshops, courses or certifications that increase your skills and knowledge. This may open up opportunities for career advancement or even entrepreneurial endeavours.
Evaluate your career satisfaction and set clear goals for the future. Whether it’s acquiring new skills, expanding your network, seeking mentorship or going back to studies, create a roadmap for growth that also supports your overall financial aspirations.
Talk to the experts in setting and chasing financial goals
Ready to build wealth in 2024? Have you established your new year’s financial resolutions? It’s never too late. You should have achievable goals to work towards every day, not just at this time of the year.
At First Financial, our goal is to assist every client in achieving their preferred retirement timeline. Your goals matter to us, and we’re here to help. To kickstart a financially sound 2024, talk to an experienced member of our team today.
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