The start of a new year is the perfect time to think about what you’d like to accomplish and set some goals to make your ambitions a reality. If finances tend to stress you out, taking small steps towards financial well-being can bring you more peace of mind in 2024. Below are some tips to help you prioritize financial goals this year.  

Create and follow a budget. Budgeting is the best way to put you in control of your money; it’ll help you plan for necessary expenses while showing what you can comfortably spend on non-necessities or save. An Excel spreadsheet is an effective tool to budget, and there is a Personal Monthly Budget template available. To get started:

1. Review 3 months of complete spending history
2. Group your expenses into categories, covering necessities and typical spending patterns (grocery, transportation, housing, restaurants, personal care, miscellaneous, etc.)
3. Compare your spending to your income; if you have extra money you can pay down debt or focus on other goals. If there is a deficit, you’ll need to determine how to reduce spending.
4. Update your budget as you spend and earn throughout each month.

Have an emergency savings.  You should have money set aside in liquid savings (i.e. a savings account) so that you can overcome an unexpected expense without turning to debt or retirement assets. Ideally, you should strive to have 3-6 months of living expenses saved.

Live below your means. Living below your means gives you breathing room. When making a larger purchase or decision, like buying a home, car, or monthly rent, keep the amount below your “max.” Then, you keep the difference between how much you could’ve spent and how much you actually spent. You can then put that money to work towards other goals.  

Keep learning! The webinar channel contains webinar playbacks on a variety of financial topics. Whether student loans or estate planning is on your mind, the webinar channel has information for everyone.