When you browse social media, sometimes you feel that you are falling behind and not hitting your goal. Realization hits when you find out that someone your age has already managed his own business or climbed the corporate ladder. Then you check your bank account and become dumbfounded that your savings don’t even hit 5 or 6 digits. You ask yourself where you have been spending all your money. I tell you, you are not alone. We made mistakes a lot, especially in handling money. Sometimes you just need to get back on track and set things right.
The year 2023 is overwhelming because it’s the year people completely got back to the new normal, though the COVID-19 pandemic is still around. We get too excited about travels, meetups, concerts, new techs, etc. But all these entail money spending. And with the recent inflation, people’s budget has become too tight affecting the cost of living. The result– few or no savings at all.
So here are some New Year’s resolutions for you to save more money and get the most out of the year 2024!
1. Invest while young
When I was in my 20s, I splurged on things that lost value after 10 years. If I could turn back time, I would have been more careful in spending my hard-earned money and invested it in something that would gain after years.
Investing at a young age can be a great way to reap the benefits of compounding. While you don’t have to sacrifice your lifestyle when you’re young, taking a long-term approach and investing regularly over time will ensure you’ll have savings and a healthy net worth when you need it most.
You can use a Savings Calculator to find the future value of a monthly investment at different compound interest rates.
Enter the starting balance, the monthly amount you intend to deposit, the expected interest rate, the number of years you expect to continue making monthly deposits, and then click the “Calculate” button to determine the future value of a monthly investment.
2. Get Insurance
Since you’re young and probably healthier, you might not think you need life insurance, but do you know that purchasing life insurance coverage at a younger age results in lower premium costs? Yes, that’s right! The older you are, the higher the cost of insurance. And believe me, you would wish that you’d been insured when you were in your 20s.
Maintaining good health also means paying less for insurance and guarantees that you will be covered in the event of a major sickness down the road. There are some insurance companies that offer flexible packages and sometimes, you can earn too while being insured! Insurance is not just money after your death. It entails security for your loved ones and beneficiaries and life insurance can also build up cash value that can be used while you are still living.
3. Set your Financial goal
Having clear objectives about your financial status can be a breeze if your goal is simpler and feasible. For example, your goal is to reach the 1-million mark on your bank savings, but your earnings can not suffice your daily spending. You will be just upset and disappointed.
Focus on simple goals. Take it lightly and as you progress, you can take a notch higher.
Financial objectives provide your investing efforts focus and direction. They make it simpler for you to keep to a budget or make compromises since you are aware of the desired result. They support you in maintaining a long-term focus. Setting and achieving financial goals gives you drive and direction while maintaining discipline in your investing process.
Your objectives should be meaningful to you in order to motivate you to keep pursuing them.
Setting objectives down on paper and taking responsibility for your accomplishments—whether with a significant other or just yourself—helps you stay transparent about your progress. Maintaining focus on your objectives requires regular evaluation.
4. Have a budget planner
As a mom, I always track our family expenses from our food down to the utility bills. It is tough to just store it all in my mind. So to easily plan our weekly budget, I am using an Online Budget Planner like Calculator.me which allows me to distribute our family income to savings, food, transportation, clothing, medical, personal, debts, and even recreation. I just have to put my net income and it will automatically translate into budget percentages.
Using the calculator, you may make a yearly or monthly budget by only entering the value of your net income in the relevant area.
For example, your percentage of requirements will be high if your income is relatively low. If your income is high, you should have more than the required savings (rather than debt) and a lower percentage of income going toward essentials.
Based on the general percentage values linked to a feasible family budget, the calculator will provide estimations. Having this information will make it simpler to create a budget that pays for all necessities while setting aside funds for extracurricular activities and charity contributions. Families may also use the budget calculator to determine their savings-to-debt ratio and to assist them in taking proactive measures to pay off any outstanding debt.
I hope that these life lessons can help you achieve your financial goals in 2024. Just remember to be SMART, and have a Specific, Measurable, Achievable, Realistic, and Timely goal for your money. Rekindle your goal but don’t be too hard on yourself. After all, everyone hopes for a new prosperous year, so I pray that you’ll do.