6 Financial Tips to Kickoff 2024

The new year is the perfect time to set goals, review progress, and plan for any major changes in the coming year. It’s valuable to do a financial review at least once a year, and there is no better time than the beginning of a new year!

Whether you already have some of the basics down when it comes to your finances or if you are putting a plan together for the first time this year, it’s a good idea to consider some key areas in your finances. To get started, here are a few basic areas you’ll want to be regularly tracking and making adjustments to:

 

• Budget – Your budget is a way to track your income, savings/investments, and expenses. It’s wise to be adjusting your planned amount based on a monthly average. (i.e. If you are consistently estimating too little for your electric bill, you may need to adjust your usage or plan to set aside more money each month.)
• Extra Funds – This is what you have “leftover” after you pay all your expenses and monthly debt payments. Money set aside for savings should be part of your budget each month, but if you spent less than you planned for in a specific month, you can use this to save extra for retirement, pay off debt early, or even treat yourself to something fun.
• Retirement – Depending on your age, goals, and potential health risks, how you save for retirement may look a bit different. However, your vision for your retirement should be a core consideration in your investment strategy. Need help coming up with a plan? That’s what we’re here for!

 

Outside of these key areas, here are 6 tips to consider as you kick off 2024:

1. Check Your Progress on Old Goals

Were you working on paying off your car in 2023? Or paying extra on your mortgage or student loan debt? Now is the time to check your progress and celebrate how far you’ve come or where you need to make adjustments. Reaching your financial goals can sometimes feel like a marathon; that’s why it’s important to pause and check the progress on the goals you’ve set.

2. Start Gathering Documents for Tax Season

Now is the time to start gathering your tax documents so you aren’t scrambling when the tax deadline approaches. In fact, did you know many employers often have your W2 ready shortly after the beginning of the year? If you are expecting a return or just want to beat the rush, you may be able to file your taxes well before the April 15th deadline. If you do get a return, don’t forget to plan out how you are going to utilize those extra funds.

Additional Resources:

Do You Have a Strategy for Tax Season?

Preparing for Tax Season

3. Plan for Upcoming Life Changes

Are you looking to change jobs in 2024? Do you have a baby on the way? Life changes like moving to a new city, buying a home, starting to care for elderly parents, and even home improvement plans can impact your finances. It’s important to keep them in mind when reviewing your finances for the new year.

Additional Resources:

Preparing Your Finances for Uncertain Times

4. Have a Plan for Student Loan Debt

As of September 2023, the U.S. Department of Education’s COVID-19 relief which offered 0% interest on student loans has ended. (source) This means if you have outstanding student loan debt, it is likely now accruing interest again. As you head into 2024, be sure to have a plan to tackle your student loan debt.

You may also want to uncover if your state offers any sort of student loan forgiveness and if you qualify. The process may be tedious, but it could be worth it if you discover you no longer have to pay back a large portion of your student loan debt.

5. Set New Goals

Setting a yearly goal for your finances helps put them into obtainable and bite-sized pieces. This helps your goals become more actionable and you’ll be able to track your process throughout the year.

There are many different goals you may have, which is why we recommend checking out the additional resources below on how to set goals for your finances. Remember, it’s never too early to start saving for the future. If you are in your 20s, time is on your side and even small investments have the potential to grow exponentially over your lifetime!

Additional Resources:

How to Set Goals for Your Finances

What to do with Your Money in Each Decade of Your Life

6. Meet with a Financial Advisor to Check Your Progress

Finances can be difficult, especially if a financial plan is newer to you or you are unsure how to best plan for the future. If you need help putting together a financial plan, or if you would like someone to review the plan you have, don’t be afraid to get a second or even third opinion from a financial advisor. They are able to help let you know if you are on the right path and if your plan is in align with your needs now and in the future.

If you are feeling overwhelmed or lost at how to plan for 2024 and beyond, you are not alone! It can be difficult to know how much money you will need and where to invest it to fund your retirement and reach your financial goals.

If you want to know for certain where your dollars should be going, if you are investing in the right places, or if you want a second opinion on how your financial plan is going, be sure to schedule a complimentary meeting with our team here at 210 Financial or give us a call at 309.263.1333!

 

210 Financial is more than just numbers. The “210” in our name stands for a childhood home that represented safety, love, and family. That is what we want to provide for everyone that we care for. Welcome home. Welcome to 210.

Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Investing involves risk, including the potential loss of principal. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions. This material is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. 2272474-2/24

 

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