Financial resolutions for New Year's
Financial resolutions for New Year's
Did you make any New Year's resolutions regarding your finances? How did you fare in that case? Did you meet your objectives or fall short? While the days leading up to New Year's Eve are frequently spent thinking about the previous year, the days after should focus on the New Year, analyze your financial scorecard in the prior year, and then look for ways to improve.
The excellent news about New Year's resolutions is that you can start over every year. Here are some financial decisions you should make in the coming year.
Taking precautions now will assist in securing our financial well-being in the future, whether it's the prolonged impact of the epidemic, changes in labor markets, or unforeseen calamities. This post will look at five powerful financial resolutions that will help you stay financially secure in 2024.
Stay Informed of Financial Trends
The world is moving swiftly, and it isn't going to slow down anytime soon. As the new year approaches, so do new and rising financial trends. While not all financial trends will be relevant to you, it is a good idea to be aware of what financial trends can be predicted.
Many new financial apps, updates, and economic changes may impact your financial objectives. Stay current on global financial events using reputable resources such as Forbes Money and NerdWallet.
Calculate Your Net Worth
If you haven't already, the start of the new year is an excellent opportunity to assess your financial worth. Calculating your net worth is essential in evaluating your financial health and achieving your objectives.
After this calculation, the resolutions you need to make will become more apparent. Examining your assets and liabilities in detail helps getting a better picture of where you are prioritizing your current spending and saving habits and where you may need to make changes.
Update beneficiary information.
This is a simple personal finance resolution. Update your beneficiary information by reviewing your credit union, bank accounts, retirement funds, and insurance policies. The people mentioned may have stayed the same, but their contact information may have double-checked everything. This process is also helpful for checking how much money you have in each account and updating the internet passwords for those accounts.
Reset Your Retirement Accounts
If you can save for retirement through your employer's 401(k), 403(b), or 457 plan, consider budgeting a certain monthly amount for your account. Think also about contributing to an individual retirement account (IRA) if you can afford it.
While saving money is crucial, investing can help you build wealth over time. Consider diversifying your investments by looking at stocks, bonds, real estate, and even cryptocurrencies. However, keep in mind that investing has risks, so get advice from a financial professional and make informed decisions to ensure your investments correspond with your long-term financial objectives.
Rebalance Your Portfolio
The stock market is known to it's ups and downs. Some industries outperform, while others underperform. The sectors that performed best last year are unlikely to replicate this year, and the outlook for most of them in 2022 is bleak. Rebalancing your portfolio to its original or updated asset allocation allows you to lock in gains from the sectors with the highest returns while also investing in sectors that trailed last year's winners.
As we stand on the threshold of a new year, embracing financial resolutions can lay the groundwork for a more secure and empowered future. Remember, the key to success lies not only in setting these resolutions but also in taking consistent steps to achieve them.
Let's embark on this journey together, supporting each other in making 2024 a year of significant financial growth and achievement. Here's to a prosperous and financially empowered year ahead!