Have you gotten to the end of the year and started jotting down your New Year resolutions for 2024? While it is customary for people to focus more on their physical and mental health in the new year, it is less common for them to focus on their financial health. With unemployment on the rise, it’s more crucial than ever to be in good financial shape. In this blog, we’ll explore several financial resolutions that can help you stay on track in 2024.
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1. Make a Budget for the Coming Year
Start by listing all the different types of expenses you have every day. Split these expenses into two groups: the ones you must have (necessities) and the ones you can choose to have (discretionary spending). By comparing what you spend to what you earn, you can determine the amount of surplus/deficit and the time of year (as well as the reason) when it is most likely to occur. This way, you may be able to advance or postpone some expenses. The main idea is to only spend the money you have left after you save.
2. Calculate Your Own Net Worth at Least Once a Year
Figuring out your net worth is simple. First, write down everything you own (your assets). Then, list everything you owe (your liabilities). To calculate your net worth, just subtract liabilities from your assets. Don’t be alarmed if your net worth drops during a market downturn. What matters is that you see a general rising tendency throughout your working years. If you’re retired, you’ll want to devise an income and distribution strategy to ensure that your net worth lasts as long as possible while also allowing you to pursue other goals.
3. Boost Your Credit Rating
If your credit score isn’t great (below 700), make it a priority to improve it this year. There are multiple ways to raise your score. Because on-time payments account for such a large percentage of your credit score, paying your bills on time and in full can make a big difference. To make it easier, you can set up automatic payments so you don’t have to remember to do it each time.
4. Make a Contingency Plan
Create an emergency plan where you save enough to cover only your essential expenses for six months. Put this money in a savings account that both your spouse and dependents can access if needed. Also, if you have a big expense coming up this year, like a major event or purchase, try to have investments set aside for it.
5. Make an Effort To Pay Off Your Debts
In these difficult times, corporations are working to reduce debt. You should also make an effort to repay loans, particularly those with high-interest rates, such as personal loans. Not only would this increase your net worth, but it would also help you increase your investment portfolio.
So, there you have it. Our five New Year’s financial resolutions. If you’re still having trouble managing your finances and credit, Credit Repair of Florida can help. We offer credit repair services for all of your financial needs. So, what are you waiting for? Get in touch with us right away!