5 Smart Financial Habits to Start This 2024

As we step into the new year, it's the perfect time to reevaluate our financial habits and set ourselves up for success. Adopting smart financial habits can make a significant difference in achieving long-term financial goals and securing a stable future! But don’t forget, just try to pick one of these - single-tasking (choosing one goal at a time), will make it easier to stick to the plan.

1. Review Your Expenses on the Regular

One of the fundamental pillars of financial stability is cash plan (AKA a budget). Knowing how much money is going in and coming out can help you build a cash plan. You can then allocate funds to different aspects of your life, such as necessities, savings, and discretionary spending. In 2024, make it a habit to start regularly reviewing expenses and in order to set yourself up to create a realistic cash-plan that aligns with your financial goals. Regularly review and adjust your cash-plan as your income or expenses change. Sticking to a cash-plan provides a sense of control over your finances and prevents unnecessary debt.

2. Set a Goal

It's crucial to periodically reassess our savings goals and contributions. Begin by revisiting your short-term and long-term savings goals, or, if you don’t have one - set one! The goal should be realistic and measurable - don’t go overboard. Better to exceed low expectations than to miss high ones.

Evaluate whether these goals are still relevant and adjust them as needed. If you've experienced positive changes in your financial situation, consider boosting your contributions to savings accounts, investment portfolios, or retirement funds. This proactive approach not only keeps you on track but also maximizes the growth potential of your financial assets.

3.  Set Aside 5%-10% of Your Paycheck to a Savings Account

Life is unpredictable, and unexpected expenses can arise at any time. Aim to have at least three to six months' worth of living expenses saved in an easily accessible account. An emergency fund acts as a financial safety net, providing peace of mind and preventing the need to dip into long-term investments or incur high-interest debt when unexpected financial challenges arise. Learn How to: Automate Your Emergency Fund Using High Yield Savings and How to Put the Fun in Emergency Fund

4. Automate Savings and Investments

Once you’ve got figured out what your savings and investment plan is, consider automating your savings and investments. Set up automatic transfers to your savings or investment accounts, ensuring that a portion of your income is allocated towards your financial goals every month. This habit not only helps you build an emergency fund but also contributes to long-term wealth accumulation through investments.

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5. Educate Yourself and Upgrade Your Money Mindset

Financial literacy is key to making informed decisions about your money. Take the time to educate yourself on your money mindset, investment options, retirement plans, and tax strategies. Don’t know where to start? Download Debbie and complete weekly modules to help you upgrade your money mindset!

The Bottom Line

Incorporating these five smart financial habits into your routine in 2024 can pave the way for a more secure and prosperous future. Remember, financial success is a journey, not a destination. By taking intentional steps towards building good financial habits, you empower yourself to navigate the challenges and opportunities that may come your way. Start the new year with a commitment to your financial well-being and watch as these habits positively impact your life.

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