2024 has just started and it is a good time to do something about your personal finance. Let’s see what you can do in this 2024 financial to-do.
Review 2023
It is good to start with a review of the past year. If you have a financial plan, you should measure the progress of your goals set in 2023. Celebrate the achievements and review the unattained goals. Take note of what led to success and what went wrong.
If you do not have a financial plan, you could review your income and expenditure of 2023. You could also review your investment portfolio at the same time. Without setting goals in the first place, you have no yardstick to measure your progress. Nevertheless, this exercise will give you a baseline of your financial situation.
2024 financial to-do
1. Set your financial goals
Set clear and achievable financial goals for the new year, whether it is saving for a specific milestone, paying off debt, or investing in a particular venture. You can set more than one goal and even separate them into short-term, medium-term, and long-term. Make sure the goals are SMART – specific, measurable, attainable, realistic, and time-based.
These goals are not just some numbers plucked out of thin air. The goals should reflect your values and linked to your personal life. Financial success should coexist with life’s true joys – nourishing relationships, enriching experiences, and personal growth. Thus, try setting financial goals that will make a difference in your life.
2. Budgeting
Create a budget for 2024. You may project your income and spending based on data from 2023. Aim to reduce unnecessary expenses and allocate funds for different purposes. Try to stick to the budget as much as possible.
3. Investment strategy
At the start of the year, it is also a good time to take a look at your investment strategy. See if you need to amend your strategy or still stick to the current one. If your asset allocation is out of your desired proportion, you may set out to rebalance your portfolio.
4. Put everything in writing
After completing the tasks above, write down everything in a financial plan. This document will serve as your roadmap during the year and as your measurement yardstick at year end.
5. Monitor and adjust
It is not the end yet with the financial plan. You still need to perform periodic reviews to your plan throughout the year. Make adjustments as life circumstances or financial goals change.
Conclusion
It is good to deal with our finances at the beginning of the year. We have one whole year to achieve our goals. It is better to have a financial plan than going through the year aimlessly. If you are not confident to deal with this, you may seek the help of a financial planner. No matter what you choose, it is important to take charge of your personal finances, and now is a good time to do so.
How can a financial planner help you?
I will work with you to develop a financial plan based on your financial goals and objectives. I will review your past cash flows and develop a budget with your input. I will also help you in other aspects if you opt to, such as retirement planning, estate planning, and risk management.
Do note that you are the ultimate decision maker. Even if the plan is perfect, it would not work if you do not implement it. So you should communicate your preferences and select a plan that you would implement wholeheartedly.
If you really cannot follow the plan, do not worry and let me know as soon as possible. I will come up with alternatives. Nonetheless, if you always fail to adhere to the plan, perhaps the plan needs to be overhauled. I will help you with this.
If you are interested in working with me to improve your finances, just leave your details here. I will reach out to you and see if we would be a good fit for each other.
Disclaimer: This post is for informational purpose only. You should use judgment and conduct due diligence before taking any action or implementing any plan suggested or recommended in this article.
