Smith 
Not feeling the traditional New Year’s resolutions like losing weight or eating healthier? You’re not alone. Many Americans are ditching the old goals and focusing on more practical ones in today’s unpredictable world. According to a survey by Affirm, in 2024, 62% of Americans plan to save money for the future, 54% aim to budget better, and 49% want to pay off debt. What financial goals do you want to set this year? Here are some top goals to prioritize for a better financial future.
- Cut Expenses
A McKinsey and Company survey shows that four out of ten Americans don’t expect their finances to fully recover from COVID-19’s impact until late 2022 or 2023. More people are figuring out how to get by with less and where to cut costs. Reducing your expenses can free up money for bigger financial goals. Regularly reviewing and cutting expenses can help keep you on track.
Cutting expenses can be tough. Peer pressure, treating yourself, and emergencies can derail you. Here’s how to stay focused:
- Cut Subscriptions: Be picky with subscriptions like streaming services. Limit them to one or two options per service type.
- Set a Reminder: Mark a date on your calendar each month to review spending, including subscriptions, groceries, and auto-refill orders.
- Get an App: Use budgeting tools like Mint or You Need a Budget to organize and track expenses, send alerts for excessive spending, and monitor subscription costs.
- Negotiate Bills: Check bills like car insurance or cell phone service for possible discounts. Shop around if your providers can’t offer better rates.
- Start a Side Hustle
According to a survey by Upwork and Freelancer’s Union, around 57 million Americans freelance. Side hustles are becoming the norm, whether it’s joining the gig economy or starting a small business. A side hustle can bring in extra cash, helping you reach financial goals like saving more, making big purchases, investing, or paying off debt.
To stay motivated:
- Find a Support Network: Connect with peers and mentors who have done similar side hustles. They can provide accountability and brainstorm solutions to challenges.
- Have a Monetary Goal in Mind: Know how much you want to earn and what you’ll do with it. This can keep you going when you’re tired.
- Schedule Time in Advance: Set aside regular time for your side hustle, like before your 9-to-5 job or in the evening.
- Save for Retirement
Half of American families have little or no retirement savings, a problem worsened by the Great Recession. Because retirement savings benefit from compound interest, it’s wise to start early. It can also offer tax benefits.
To boost your retirement savings:
- Take Advantage of Any Employer Match: Max out any matching contributions from your employer.
- Make Catch-Up Contributions: If you’re 50 or older and haven’t consistently contributed to your IRA or 401(k), you might be eligible for additional contributions.
- Set Automatic Contributions: Automate your retirement savings to make it a priority without relying on willpower.
- Rebalance Your Portfolio Regularly
The stock market is unpredictable, as shown by the Dow Jones’ 26% plunge in March 2020. Whether you’re timing the market or taking a buy-and-hold approach, regularly assess your portfolio to adapt to changes. Diversifying your investments is key to weathering market swings.
To stay consistent:
- Hire an Advisor: If you’re not confident in your knowledge, consider an investment advisor. Online or robo-advisors like Wealthsimple or Robinhood are good starting points.
- Stay Informed: Keep up with market trends. Add a stock ticker to your phone’s lock screen and subscribe to investment newsletters and stock alerts.
- Refinance Debt
With interest rates at near-record lows, many people aim to refinance their debt. Refinancing at a lower rate than your original loans can save you money on interest, letting you pay off debt faster. You can refinance most types of debt, including mortgages and student loans.
To get started:
- Shop Around: Compare rates and terms from various lenders.
- Consider Fees: Watch out for prepayment penalties on your old debt. Factor them into your refinancing decision.
- Repay Your Old Debt: Ensure your old debt is completely paid off and close those accounts to avoid more debt.
- Prepare for Emergencies
Emergencies happen, and many American households don’t have enough savings to cover even one month of lost income. Prioritizing emergency planning is a smart goal for this year.
To prepare:
- Emergency Savings: Aim to save enough to cover about three months of expenses. Keep this money in an easily accessible account.
- Insurance: Ensure you have coverage for health, home, auto, and life insurance. Look for discounts for multiple policies.
- Create a Will: Having a will and personal directive is essential, even if you don’t have many assets. It helps settle your estate and can make decisions for you if you become unable to.
Final Thoughts on 6 Financial Goals for the New Year
Many Americans are shifting away from traditional New Year’s resolutions towards practical financial goals for 2024. These goals focus on securing financial futures, improving budgeting skills, and reducing debt. By cutting expenses, starting side hustles, saving for retirement, rebalancing portfolios, refinancing debt, and preparing for emergencies, individuals can navigate the financial landscape with greater resilience and stability.
