Benchmarking Your 2024 Financial Resolutions

As we are now approaching the mid-point of the year, it’s prime time to reevaluate our financial strategies and benchmark our financial goals and resolutions we set earlier in the year. In this blog post, we’ll break down straightforward and actionable financial resolutions you can set if you have yet to set goals, and also the importance of re-visiting the progress of your goals set at the start of the year. So, let’s dive in.

1. Audit Your Finances: Start by taking both a macro and micro level view at your current financial situation. Examine your income, cash flows, budget, expenses, debts, and savings to identify areas that need to be revisited for improvement or evaluation.
2. Build a Realistic Budget: Craft or tweak a budget that aligns with your lifestyle. Track your income and allocate funds for necessary expenses, savings, and discretionary spending. Regularly review and adjust your budget to accommodate any changes. Spring calls for a great time of year to revisit your spending in the first half of the year and can help you adjust accordingly.
3. Emergency Fund Priority: Establish or reinforce your emergency fund. Come up with a value as a goal that is comfortable for you and your family in an emergency scenario. This financial cushion will provide security in unforeseen circumstances, such as job loss or unexpected bills.
4. Tackle High-Interest Debts: If you have outstanding debts, create a practical plan to reduce and eliminate them. Prioritize high-interest debts while making consistent payments on all obligations.
5. Diversify Your Portfolio: Explore and ensure that your investment portfolio and allocation match your risk tolerance and long-term goals. Seeking advice from a financial advisor can help optimize your investment strategy and align all your goals.
6. Adjust For Retirement: Contribution limits for retirement accounts increased for 2024, so adjust your retirement contribution accordingly and ensure you are contributing regularly or are on pace to reach your retirement goal for the year. Adjust your investment allocation based on your age and risk tolerance, ensuring your portfolio is positioned for long-term growth.
7. Boost Financial Literacy: Financial literacy month just passed in April, so dedicate time to expanding your financial knowledge. Stay informed about personal finance strategies, investment trends, and economic developments.
8. Regularly Review and Adjust: Recognize that financial circumstances change. Schedule regular check-ins to assess your progress and make adjustments as needed. Flexibility and accountability ensures your financial resolutions remain practical and achievable.
9. Acknowledge Wins and Learn from Setbacks: Celebrate your financial victories, no matter how small. Treat setbacks as learning experiences. Adjust your strategy when necessary and use challenges as motivation to stay focused on your financial goals.

While these are some great resolutions to work on or towards, for those of you who’ve already set your financial goals for the year, now is a great time to assess and analyze your progress. Are you saving less monthly than you’d hope for in January 2024? If so, revisit your budget to ensure accuracy and accountability. Revisiting your financial plan and strategy frequently can help you stay on course and reach your financial goals by year end. I

In 2024, commit to practical and achievable financial goals. By implementing these straightforward resolutions and revisiting them regularly, you’ll be better positioned to strengthen your financial foundation and navigate the rest of the year with confidence. If you have any questions or are seeking a financial check-in/tune-up, schedule a complimentary intro call here or email info@shermanwealth.com.