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Fresh Start with Finances this New Year 2024
Are You Ready or a Fresh Start with Your Finances this New Year 2024
I love the turn of a New Year.
There are three times a year that I feel give a fresh start.
- New Year’s Day
- My Birthday
- Back-to-School after Summer Vacation
But, it’s the New Year that feels like a fresh start for my finances.
Maybe it’s my goal-setting mindset, but I love to break out a notebook and write down all my financial goals for the New Year.
Do you set goals for your finances?
“If you fail to plan, you are planning to fail!” – Benjamin Franklin
A CBNC survey showed that over 60% of American families were living paycheck to paycheck in 2023.
According to the Business Insider, the average American family is almost $60,000 in debt!
Are you included in these statistics?
Are you ready to set yourself free from this bondage?
Let’s start the New Year out with some concrete plans to give our finances a fresh start.
Assess Your Current Financial Situation
The first step to a fresh start with our finances can be a tough one.
Start by taking a good look at your financial situation.
What is your current budget?
List ALL of your debts.
Name your typical expenses.
Make a list of your needs.
What is your savings goal?
This can be overwhelming and downright discouraging, but it is necessary to know your financial status in order to start digging your way out.
It is extremely important to be honest and realistic with oneself in this assessment.
This can all be done simply by pulling out a fresh piece of paper.
You can type it up in a Google Doc.
Others may choose to use apps, like Every Dollar by Ramsey Solutions.
The way you write it out doesn’t really matter. The idea is to be honest, write it all down, then take a good look at where you stand.
Assess Your Current Financial Situation
Set Realistic and Attainable Goals
Now that you can see the true status of your finances, what do you want to do about it?
These are your personal goals.
Do you want a Debt-Free Plan?
Are you trying to reach a Savings Goal?
Maybe you have specific wants and/or needs that you want to reach this year.
Perhaps, like me, you want to pay your bills ahead in order to make the year have a little less stress.
Set Realistic and Attainable Goals
Create a Budget that Works for You
Having a determined mindset is what of the major keys to giving your finances a fresh new start this year.
Everyone has their own outlook when it comes to financial matters.
I, personally, hate debt.
Debt has a way of grabbing a person by the throat and refusing to let go.
You may be happy for the first four weeks, but after that the nonstop payments begin.
I don’t like the option of paying the bank or buying the things may need at that moment.
The bank always wins.
Others feel like debt is a good thing.
I just encourage you to take a good look at your own finances, then sit down and create a budget that works for you and your family.
The word, budget, may be a curse word to you.
Many people cringe at the very word.
I see a budget as a way of telling my money where to go.
Tell your money where to go or it will just go.
Here are a few ideas to keep in mind when creating a budget:
- Put all of your monthly bills into your budget.
- Save something. Anything!
- Make sure all needs are covered. Wants may need to be put on a back burning for a while.
Bills need to be paid. One of my goals is to pay my bills ahead each month. Many of my bills are actually paid a year ahead.
If I am unable to pay my bills ahead, then I like to pay a little extra each month.
i.e. – If your light bill runs, on average, $200.00 per month, then pay $220.00 each pay period. This will give you a free month at the end of the year!
Even paying an extra $5.00 on your trash or internet bill will add up by the end of the year.
Be realistic. Remember that budgets may change month-to-month as your financial needs change.
Don’t get discouraged if your first few budgets are followed perfectly. Keep moving forward. Don’t give up!
I have certain goals that I like to reach each year.
Some of these goals include filling my pantry, having a big garden, and buying gifts for my kids and grandchildren.
Because these things are important to me, I keep them in my monthly budget plan.
Buying a little something towards my goals each month keeps me from having to spend a lot of money at once.
The internet is filled with financial tools and apps that can help with budgeting and tracking expenses.
I, personally, just use one of the cheap single-subject notebooks I picked up during the back-to-school sales. #oldschool
Create a Budget that Works for You
Cut Back on Unnecessary Expenses
I have seen that many people have a financial goal in 2024 to cut back on unnecessary expenses.
I love this goal.
I live this way in my everyday life.
Cutting back on unnecessay expenses does not mean I deprive myself.
I like to ask myself some questions before I make unnecessary purchases.
- Do I want to give my money to a certain business, or would I rather have that money at the end of the day?
- Do I want to add more clutter to my home and life?
- If I spend my money on this specific item, will I still be able to buy the things I need and/or really want?
I have a few tactics when I suddenly think I want or need something that I haven’t considered before.
- If I find something while shopping, I put it in my cart and think about whether I really want to buy it. Most times, I put it back before heading to the checkout.
- I use this same technique when shopping online. I don’t make quick purchases. I put things into my shopping cart, then leave it there for many days and sometimes even weeks. The urgency to buy it lessens as each day passes.
Cut Back on Unnecessary Expenses
Does this mean I go without things all of the time?
Nope.
It means I still have money in my pocket that I can use on my financial goals list, which includes those things I really want.
I simply use my money strategically.
Fresh Start with Finances
Are you ready for a fresh start in your finances this year?
Don’t get overwhelmed.
Remember that small changes can make a big difference.
Little things matter!
You can do this!
Share your tips and experiences for a fresh start in finances in the comments section.
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