Personal Finance Resolutions - 2024
Below are some money resolutions for the new year. If you have any questions on how to get started, find a time to talk here.
Build an emergency fund: Create a savings cushion to cover living expenses for 6-9 months. Aim to save enough to cover essentials like housing, food, insurance, and transportation.
Pay down debt: Make a monthly plan to pay down your debt as quickly as possible, starting with the highest interest rate debt first.
Create a budget: Track your expenses so that you can make sure you’re not spending more money than you earn. Identify areas where you can cut back, freeing up more money to save and invest.
Diversify your investments: Diversify across different asset classes, such as stocks, bonds, real estate, and cash. This will help to reduce your risk if one asset class underperforms. Rebalancing should be done at least once a year.
Invest for the long term: Don’t panic sell your investments if the stock market takes a downturn. Instead, focus on investing for the long term and stick to your plan.
Keep your credit score high: A good credit score can help you qualify for lower interest rates on loans and credit cards. It can also make it easier to get approved for apartments and other rentals.
Review your insurance coverage: Make sure you have adequate insurance coverage for your home, car, health, and disability.
Max out your tax-advantaged accounts: 401k's, 529 college savings, and Health-Savings Accounts all have incredible tax savings. Be sure to maximize their impact by contributing as much as you can in 2024.
