Did you know that getting on top of your finances is one of the most common new year’s resolutions here in Australia?
A recent study conducted by Money Smart showed that while over 72% of Australians aged between 27-34 have a financial goal for the new year, only 33% of those are not on track to meet their goal by the end of 2024.
With the current state of the housing crisis, paired with the impacts of inflation, it has never been a more important time to take control of your financial situation, and set yourself up for success.
When it comes to finances, it is important to set clear SMART goals that are specific, measurable, achievable, relevant and time-bound, so that you can set yourself up for success.
Here are our 5 top tips for taking control of your finances in 2024, so you can spend less time worrying, and more time doing what you love.
1. Review all of your bank and credit card statements
Before you begin to set any new financial goals for the new year, it is important to reflect and review your spending trends from last year, so you can understand where your money is going. By doing this step, you are allowing yourself to better understand your financial literacy, and identify any spending/saving patterns, and the areas that are needing greater improvement.
2. Free up your spending money by budgeting
Budgeting may sound restricting, but doing this now is going to help you in the long run. Create a budget that aligns with your current income and financial goals, ensuring that all bills and necessities are included. By proactively managing and reviewing your finances, and creating a well structured budget, you will allow yourself to make more informed decisions and build greater financial resilience.
3. Pay off those debts
This may seem daunting, but by breaking down exactly what you owe, and making a plan to pay it off, you can gradually work towards eliminating this mental and financial stress. By establishing a clear and detailed repayment strategy, you are not only giving yourself greater financial control, but also paving the way for financial freedom.
4. Get into a routine with your savings
By developing a saving mindset, you can get ahead of any debts, unplanned costs, and have a fund available for any emergencies. This will relieve any unnecessary stress and anxiety when it comes to finances, while also setting yourself up for financial success. An easy way to do this is by setting up an automatic recurring payment, so that money is regularly getting transferred into a savings account. Bonus points if it has high interest too!
5. Always educate yourself, and build your financial knowledge
This year, you should make a commitment to learning more about money, and the ways that you can make yours last longer. By staying educated and continually learning more, you can prepare yourself and your funds so you can be ready for anything. This can be as simple as logging into your super account every month to check your investment balance, or by subscribing to financial newsletters and podcasts that can provide you with new tips and tricks for staying financially responsible.
By adopting these habits, you are sure to be on the road to getting your finances in shape in 2024!