Nine Ways to Get Your Finances Going in the Right Direction in 2024
Forget the former things;
do not dwell on the past.
See, I am doing a new thing!
Now it springs up; do you not perceive it?
I am making a way in the wilderness
and streams in the wasteland.
The beginning of a new calendar year commonly conjures up thoughts of new beginnings and fresh starts. That’s why many people make New Year’s resolutions—those lofty goals that often fall by the wayside by Valentine’s Day. A Forbes survey found that improved finances is one of the top five New Year’s Resolutions that people make, with a third of people ages 26 to 57 naming it.
Unfortunately, 44% of people can’t keep their New Year’s resolutions for more than 3 months. Why? Often they are too ambitious or too vague. Lasting change is most attainable when approached through small, incremental adjustments. In light of this, I would like to offer nine small things you can do to start 2024 off on the right foot, financially speaking. You don’t have to do all nine, even just one will likely put you in a better place than you were in 2023.
Track Your Expenses
Are you aware of where your money is going? If not, you’re not alone. Many people only pay attention to the direction their overall checking account balance is moving and don’t actually know where it all goes.
The first step of biblical financial stewardship is knowing what you have and where it is going. If you aren’t already, I would encourage you to start tracking your expenses in 2024. You don’t have to try to make any changes, just be aware of what is going on. Often, awareness leads to change, but that is not the goal here. This is especially important for those nearing and in retirement because spending more than you think can lead you to run out of money much faster than expected.
Start Investing
This one is more valuable the younger you are, thanks to the power of compounding interest. Investing is a biblical concept and can make a big difference in the life you are able to live—and the impact you are able to have—later on.
If you aren’t currently investing for the future (or living off of your investments), start investing even if it’s only $10 a month. If your employer offers a 401(k) or 403(b), that is a great place to start. You will want to make an effort to contribute at least enough to earn the full match if your employer offers matching contributions. If you have earned income and your employer doesn’t offer a retirement plan, then you can invest up to $7,000 ($8,000 if you are over 50) in a traditional or Roth IRA.
Review Your Insurance
Insurance is one of those things that most people only think about when they purchase something that needs to be insured or they need to make a claim. However, it is a good practice to shop around every three to five years to make sure you are still paying competitive rates.
It’s also important to review your insurance coverage regularly. Do you still need life insurance? Maybe not. Has one of your children finally left the nest? Getting them off of your car insurance could save you a lot in premiums. Did your house value shoot up during the pandemic? You probably want to make sure that your homeowners coverage is sufficient to cover the replacement cost of your now-more-valuable home. It would be an unpleasant surprise for something to happen and the insurance company only covers half the cost.
Identify Your Values
This one may surprise you, but identifying your core values can be a really smart financial move. We even had all of our clients do this last fall so that both we and they would have more clarity on their priorities as they make financial decisions.
If you’ve never written out your core values, find a free values exercise online, such as this one, and do it. Once you’ve identified your values, ask yourself how they align with your current lifestyle. If someone looked at your budget, would they recognize your values? If not, you may be happier and more fulfilled if you make some changes to match your spending to your values.
Increase Your Savings
Boosting your savings is another smart move for 2024. If your company provides salary increases at the beginning of the year, it’s a great time to increase your savings without affecting your current spending.
Some companies also have the option to automatically increase retirement savings in an incremental manner. Make use of that feature until you’ve reached your goal. Even if you don’t have any automatic options, increasing your savings by 1% of your income each year can make a big difference over the long term.
Start Your Taxes Early
This isn’t a big one, but it could be great for your mental health. Start preparing your taxes early this year. You should have all of the documents that you need by the end of January, so there’s really no reason to wait until April. You will experience less stress and anxiety if you don’t wait until the deadline and your tax preparer is probably a much more relaxed and enjoyable person to work with in February than in April, too!
Increase Your Giving
We talk about giving a lot here at the Christian Financial Advisors Network because it is such a critical part of the Christian walk. Sacrificial generosity is the foundation of Christianity. As a response to God’s gift to us, we give.
Many clients come to us with a goal of increasing their charitable giving. There isn’t a “right amount” for Christians to give, but if you have a desire to increase your giving in 2024, I would encourage you to make it a priority. And if you need to give your heart a little push in the right direction, read this article.
Get An Estate Plan
Getting an estate plan in place is one of those things that sits on most people’s to-do lists longer than they’re willing to admit. There’s no immediate reward or excitement, so it’s really easy to put off. However, as anyone who has been through the probate process will tell you, it is really important.
If you have minor children, the most important part of your estate plan is naming a guardian. Without your wishes known, if something happens to you a judge on a bench somewhere will be the one to decide who raises your children and shapes their young souls.
Perhaps even more dangerous to your children of any age is not having thought through wealth transfer and not having your affairs in order. A sudden inheritance could be either a blessing or curse, depending on how the heir has been prepared to receive it.
Find Help
I’ve provided you with a number of ideas here to start moving in the right direction with your finances in 2024. Any of them can be done on your own, but I understand that not everyone is a do-it-yourselfer. That’s okay, you don’t have to be! We are here to help.
The Christian Financial Advisors Network consists of fee-only, fiduciary financial advisors who have earned the highest designation in financial planning, Certified Financial Planner, and have also done advanced studies in integrating the Christian faith through their financial advice through the Certified Kingdom Advisor designation. If you don’t want to go on this financial stewardship journey alone, reach out to one of us and we would be happy to come alongside you.
