Setting the "Reset" Button on Your Finances in 2024
Sometimes, the best way to handle a situation is to wipe the slate clean.
Think of it like shaking an Etch-A-Sketch. After you finish creating a picture, it’s not permanent. Instead, you shake the toy and the image disappears, wiping the screen clean for a new image to be created.
Sometimes, that “Etch-A-Sketch” is your finances. If you have an urge to get organized in 2024, it may be time to wipe that picture clean, start over, and find a smoother and smarter pathway to financial planning.
Let’s review some tips to get you on your way to meeting your 2024 financial goals!
Create a Budget
Before you embark on big trip, you map out your route, right? Or at the very least, type an address into your phone map for directions…
Setting a route for your finances is equally important. Before you can be confident about the destination, you have to outline a way to get there. Setting a budget is a step every individual or family should take. It is one of the most basic, yet crucial, financial steps! Read this blog for an easy step-by-step.
Make a Plan to Payoff Debt
A very common New Year’s resolution is to eliminate (or reduce) household debt. I love this goal, because paying down your debts can open the door to better financial opportunities for just about every family, such as putting more money into retirement savings.
There are a lot of resources out there to help you pay off debt, and I’ve written about this topic a few times in the past. Check out this blog to learn the differences between “good debt” and “bad debt” and then read this article to learn about some practical debt-payoff strategies.
Set Deadlines
So, do you have a plan in place? That’s great. Now, you must hold yourself to it!
Deadlines help to keep you on track. Dates can also provide a way to break down major goals into smaller, mini-goals or milestones that you will aim to meet each week, month, quarter, or year.
You can also start small and work your way up when it comes to savings. Most people cannot change overnight. Going “cold turkey” is hard when breaking any habit, but especially when it comes to spending habits. You want to follow your own set rules, but also be realistic about how long these changes may take.
Setting yourself deadlines will help to keep you on track, see successes even early on, and encourage you to stay the course as you see small changes adding up to big wings.
Include the Whole Family
No single person can get an entire family on a path to financial balance (and stick to it) alone. Families earn together, and families spend together. If one person in charge of the budget has a plan, but every family member is not on board, it will be tough to see much traction.
Instead, this is a great time to coordinate the plan with all members of the household. If you are married or in a relationship, know that it is crucial for couples to create, stick to, and agree upon goals together. Getting on the same page is key to deciding on the goals and how you’ll go about sticking to them.
But it doesn’t end with the adults! Creating financial goals is a great learning tool for those of all ages in the family. Even the youngest children can understand some basics of things like an allowance, or cutting back on one “want,” to allocate money for a “need.” Explaining these building blocks of finances now will not only help the whole family work together but also will provide your kids with a great foundation for creating healthy financial planning practices from the get-go.
Check out this article for more helpful tips about how to teach your kids about money management.
Get Professional Guidance
At Gretchen Rehm Financial, we work with local families to help them create budgets, plan out their retirements, and answer their financial questions. Schedule a first-time (or check-in) appointment, today, so we can help to guide you to meet the goals that are important to you! Click here to learn more.
