Five Strategies to Boost Your Financial Health in 2024

Your personal finances might require some adjustments to improve your financial future when it comes to saving money in 2024. Financial planners may offer several money management solutions that you can handle on your own before paying them. Achieving your goals in the future is more likely if you make changes now, and your financial security is of utmost importance.

5 Financial Decisions That Can Help You Become More Financially Well

It’s not necessary to tackle all of your financial decisions and transactions in one go. Your financial situation can be divided into smaller, more doable steps that you must take to get back on track. Here are five investment and savings tips to help your financial wellness program succeed in 2024.

Monitor your expenditures.
Boost the value of your money
Put your money to use.
Rethink the way you settle your debt.
Treat yourself like a worker by paying yourself.

1. Monitor Your Expenses

Assessing your spending and savings honestly is the first step towards improving your financial well-being. Modern automatic payment options are convenient, but you might be paying more in monthly expenses than you need to when the money is hidden from view.

Keeping track of your expenses can be as simple as making a spreadsheet to identify areas where you can potentially reduce credit card interest rates or cancel subscription fees. It’s half the fight to know where you stand, but if you want to be more detailed, these budgeting apps for 2024 come highly recommended:

• EveryDollar
• YNAB
• Monarch
• Mint
• Honeydue
• Goodbudget
• Fudget
• PocketGuard
• Rocket Money

2. Encourage Your Funds to Grow

Where you save your money matters, but how you save it matters even more. You are losing money if you do not take advantage of savings products with higher yields. Make sure to keep your money in a money market account, CD, or high-yield savings account, even if it’s just your emergency fund.

You can make more money with your investments thanks to higher interest rates or compound interest, and there’s no reason why you can’t take advantage of these simple profit opportunities. These accounts are low-risk and guarantee your earnings, even though they may not pay as much as stocks and bonds.

3. Invest Your Savings

While high-yield savings products are excellent, there may be other ways for you to invest your money that will allow you to increase your wealth faster. Investing in stocks, bonds, real estate, and inexpensive index funds can significantly enhance your financial well-being. Although there are no guarantees, taking greater risks can result in greater rewards.

Investing the money you save for your retirement account more prudently may also be an area for improvement. Ensure that the employer match on your 401(k) accounts is fully utilized. By acting now, you can improve your retirement’s financial stability.

4. Review Your Debt Paying Strategy

You have to pay off your credit card debt and school loans before you can start building. You might be able to bargain for a lower cost on your bills. To get late payment penalties waived or even a lower APR, for instance, you could speak with a representative from your credit card issuer. Don’t rely solely on automatic bill payment; your bills might not be as definite as you believe.

To determine where you can make monthly spending reductions, it is crucial to reevaluate your debt. To kick off your reevaluation, consider the following advice:

• Set aside a certain amount of money each pay period automatically in a different account specifically for paying off debt.
• Reduce your discretionary spending and get rid of any costs that are not absolutely necessary.
• Create a budget that is both practical for your current circumstances and your financial objectives.
• Determine the total principal amount owed on all of your debts, then begin paying off the loans with the highest interest rates first.
• If consolidating your credit card debt will result in a lower monthly interest payment, do so.

5. Treat Yourself As An Employee Would.

One of the best mental habits you can have to improve your financial wellness is paying yourself first. This entails creating a reverse budget so that your savings objectives take precedence over your spending. In essence, you should consider the money you save as a personal check that you must write.

When making a reverse budget such as this, it is beneficial to practice the following financial habits:

Using a budgeting technique like the 50/30/20 rule, set aside a certain portion of your monthly income for savings. Accordingly, you will set aside 20% for savings, 30% for wants, and 50% for necessities from your paycheck. It is important to consider the 20% as your initial payment to yourself.
Save money on autopilot and have it transferred automatically into a different account that you rarely access unless there’s an emergency.
Your payments can be made into an IRA, retirement plan, investment account, or estate plan.
In addition to any yearly pay increase you receive, you should also increase what you pay yourself.

Lastly, To Go: Wellness and Money Guidance

There’s more to improving your financial situation than just raising your credit score. Instead, it’s the culmination of all your tiny decisions that will shape a better financial future. This is not to argue that you shouldn’t consult a financial planner or advisor, but in the end, you are the one who will most likely be able to help you establish and meet your financial objectives.