With the new year upon us, thoughts naturally turn to the months ahead and what they hold. While inflation is lower than in 2023, there are still challenges ahead for 2024.
So how can you best prepare for them?
If you’re reading this, you’re already preparing for them!
But there is more we can do to help you make it through the next year.
I’m going to share 10 actionable money goal tips to help you take control of your money to give you the best 2024 possible, as far as finances go anyway!
Why set goals?
Money goals are useful because they can concentrate the mind. Rather than looking at your entire financial situation and perhaps being overwhelmed, setting specific goals can help focus your efforts.
A specific goal, say, to pay off all your credit cards, uses a single idea that shouldn’t overwhelm you or put you off taking action.
You can also set reminders, use visualisation and tell friends about a specific goal much easier than if you set several.
10 tips for setting money goals for 2024
In the spirit of keeping things simple and achievable, I’m going to share 10 simple money goal tips.
1. Assess your current financial situation:
- Income: Determine your current income sources and their stability.
- Expenses: Track your monthly expenses to understand your spending habits.
- Debts: Take stock of your debts, including loans, credit cards, and outstanding bills.
2. Define clear and specific money goals:
- Be specific: Define your goals clearly. Instead of saying, “I want to save money,” say, “I want to save £1,000 by the end of the year.”
- Short-term and long-term goals: Differentiate between short-term goals (achieve within a year) and long-term goals (achieve in 3-5 years).
3. Make your goals SMART:
- Specific: Clearly define what you want to achieve.
- Measurable: Set specific amounts and deadlines for your goals.
- Achievable: Ensure your goals are realistic considering your current financial situation.
- Relevant: Align your goals with your overall life objectives.
- Time-bound: Set a clear timeline for achieving each goal.
4. Break down big money goals into smaller milestones:
- Divide big goals into smaller, manageable tasks. For instance, if your goal is to save £1,000 in a year, break it down into monthly or weekly savings targets.
5. Create a budget:
- Income vs. expenses: Create a household budget and allocate specific amounts for necessities, savings, and discretionary spending.
- Cut unnecessary expenses: Identify areas where you can cut back, such as dining out, entertainment, or impulse purchases.
6. Build an emergency fund:
- Aim to save at least 3-6 months’ worth of living expenses. This fund acts as a safety net during unexpected financial crises.
7. Increase your income:
- Explore opportunities: Look for additional sources of income, like freelance work, part-time jobs, or online gigs.
- Invest in skills: Invest in education or skills that can enhance your earning potential.
8. Manage and reduce debt:
- Prioritise high-interest debt: Focus on paying off high-interest debts first to save money in the long run.
- Negotiate interest rates: Contact your creditors to negotiate lower interest rates or consolidate debts if feasible.
9. Regularly review and adjust:
- Monthly review: Regularly review your budget and money goals. Adjust as needed, especially if there are changes in your income or expenses.
- Celebrate achievements: Acknowledge and celebrate your financial milestones to stay motivated.
10. Seek professional advice:
- If needed, consult a financial advisor or planner. They can provide personalized guidance based on your situation.
Remember, turning your life around financially is a gradual process. Stay persistent, stay disciplined, and be adaptable in the face of unexpected challenges.
By following these steps and staying committed to your money goals, you can achieve financial stability and transform your life in 2024!
