7 Financial New Year’s Resolutions for 2024
The new year brings opportunities for financial growth and stability. Consider these seven resolutions to strengthen your financial foundation in 2024.
1. Get a High-Interest Savings Account
Take advantage of high-interest rates on savings accounts, particularly on high-yield online savings accounts. Some accounts offer over 5% annual percentage yield, surpassing the national average by tenfold. To make the most of this opportunity:
- Open a new account with a high-interest rate or upgrade your current one.
- Avoid fees and select a bank or credit union accessible through remote customer service or in-person services.
2. Focus on Student Loan Repayment
With student loan payments resuming in 2023, address your loan situation proactively:
- Assess your total loan amount and explore options to reduce payments.
- Update your income in the student loan portal to potentially adjust income-driven repayment amounts.
- Consider contributing to a pre-tax retirement account to lower taxable income and reduce income-driven repayment percentages.
3. Build Financial Knowledge and Set Goals
Invest time in improving your financial literacy and establishing clear goals:
- Explore reputable online sources, library finance books, or consult certified financial planners for education.
- Identify personal financial goals, such as early retirement, homeownership, or building an emergency fund.
- Set measurable targets and create a timeline for achieving financial goals.
4. Utilize AI for Financial Management
Incorporate artificial intelligence (AI) into your financial planning for efficiency:
- Experiment with AI chatbots like ChatGPT and Bard for research, advice, and calculations.
- Instruct chatbots to provide insights on budgeting, savings, and expense reduction.
- Verify information received from AI by double-checking calculations or consulting experts.
5. Set Up Recurring Donations to a Nonprofit
Contribute to the community and streamline your charitable giving:
- Explore recurring donation options through your employer’s matching programs or directly through a nonprofit’s website.
- Simplify donations by wiring funds from your bank account or using services like Zelle.
- Confirm the nonprofit’s 501(c)(3) status for tax-exempt donations, enabling tax deductions during the filing season.
6. Establish an Emergency Fund
Prepare for unexpected expenses by creating an emergency fund:
- Determine a realistic savings goal, typically three to six months’ worth of living expenses.
- Set up a separate savings account and contribute regularly to build your emergency fund.
- Use the fund only for genuine emergencies, ensuring financial security in times of need.
7. Diversify Your Investments
Enhance your investment portfolio by diversifying across different asset classes:
- Assess your current investment holdings and identify areas for diversification.
- Explore options such as stocks, bonds, real estate, and mutual funds to spread risk.
- Consult with a financial advisor to develop a diversified investment strategy aligned with your risk tolerance and financial goals.
Embark on 2024 with a strategic financial plan, incorporating these resolutions to achieve greater financial well-being.
