Improving your finances involves a combination of budgeting, saving, investing, and managing debt.
It is important to remember that financial improvement is a gradual process. Take small, consistent steps, and celebrate your achievements along the way.
In this article we have provided you with a checklist to help you get started on improving your finances in 2024:
✔ Set financial goals
- Write down short-term and long-term financial goals e.g. holiday, emergency fund, buying a home, retirement.
- Prioritise your goals based on urgency, importance and why you want them (this gives you an emotional connection, making success more likely).
✔ Review or create a budget
Income
- Update your expected income.
- Explore additional sources of income and research salary trends in your industry.
Expenses
- Review your expenses to understand your spending patterns.
- Categorise expenses (e.g. housing, utilities, groceries, entertainment etc.) to identify areas for potential savings.
- Cut any unnecessary expenses.
- Negotiate bills and seek discounts to save money.
- Allocate a portion of your income to savings and investments.
Tracking
- Using a spreadsheet or app will help you keep your finances organised.
- Be cautious about increasing your spending as your income rises. Save or invest the additional income rather than increasing your lifestyle expenses.
✔ Build your savings
- Aim to have at least 3-6 months’ worth of living expenses in an emergency fund.
- Set up automatic transfers to gradually build your savings.
- Establish a retirement savings plan.
- Contribute regularly to your investment accounts.
- Consider diversified investment options based on your risk tolerance.
✔ Tackle your debt
- List all outstanding debts (credit cards, loans, etc.).
- Develop a plan to pay off high-interest debts first.
- Consider debt consolidation if it makes financial sense.
✔ Credit Score check
- Obtain a copy of your credit report and check your credit score.
- Address any inaccuracies on your credit report.
- Pay bills on time to improve or maintain your credit score.
✔ Review and adjust all your policies
- Evaluate your insurance policies (health, life, car, home) to ensure they meet your current needs.
- Don’t get hit with a “lazy tax” and shop around for better rates if necessary.
✔ Educate yourself
- Stay informed about personal finance topics.
- Read books, attend workshops, or follow reputable financial websites to enhance your financial literacy.
✔ Tax planning
- Stay informed and take advantage of available tax deductions.
- Consider consulting with a tax professional for personalised advice.
✔ Plan for retirement
- Regularly assess your retirement savings goals and adjust contributions as needed.
- Explore retirement planning options and different superannuation strategies.
✔ Estate planning
- Review and update your Will and other estate planning documents.
- Ensure beneficiaries on your superannuation and insurance policies are up to date.
✔ Review and adjust regularly
- Periodically review your budget and financial goals.
- Adjust your plan as circumstances change.
✔ Seek professional advice
- Consider consulting with a financial advisor for personalised guidance based on your specific situation.
More information
If you would like to discuss financial planning, feel free to get in touch with us on 03 9886 0800 or drop us an email. We’re here to help you make the most of your financial future.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2024. Please do not reproduce without the expressed written consent of the author.