Embarking on a journey of self-reflection in 2024 might just be the catalyst for a financial resolution that transforms your life. Instead of the usual promises to wake up at the crack of dawn for a workout, what if you set a financial goal that genuinely alters your trajectory? According to financial experts, the key to success lies in understanding your “why.”
Long lasting change is not only achievable but sustainable if you anchor your new year resolutions in personal meaning – rather than a general commitment to something, why not envision how that change could redefine your life – early retirement, extensive travel, more time with family, or a worry-free day to day.
Move away from the rigid mindset of reaching a specific financial milestone for happiness and instead identify what truly motivates you. Ask yourself, “What is a financial goal that aligns with my life plan?”
- Spending Awareness: Instead of the usual focus on spending less or saving more, work on having a more heightened awareness of where your money goes. Understanding your expenses, from rent and subscriptions to savings, is the crucial starting point for a financial turnaround.
- Planning: Working with your financial adviser on savings goals and what you want to build towards will allow you to invest in your future, fostering financial stability. This could include building an emergency fund, discussing the best insurance for you and working on building your Super.
- Resolve to Care for Your Future Self: Plan for your future by maximizing workplace retirement benefits. A start could be setting up your account to automate payments into savings and retirement accounts, ensuring consistent contributions toward your financial goals.
- Plan for Retirement: Regularly contribute to your retirement accounts. Take advantage of employer-sponsored plans, and if possible, consider contributing more than the minimum required for any employer matching.
- Stay Mindful of Lifestyle Inflation: Be cautious of lifestyle inflation that often accompanies salary increases. Instead of immediately increasing expenses, consider allocating additional income toward savings or investments.
- Regularly Review and Adjust: Periodically review your financial plan and make adjustments as needed. Life circumstances change, and your financial plan should adapt accordingly.
- Be Accountable: Ensure you set up accountability measures to keep you accountable. It benefits to work with a Financial Advisor who can help keep you on track to your budgets and goals.
Remember to come in and have a chat with your financial adviser to look at your life plan and the goals you want to reach and lets work together on a plan of how to get there, ultimately paving the way for more freedom and less stress.