New Year, New Financial Goals: Crafting Smart Money Resolutions for 2024

Whether you need to do a money stock take or want to draft some new financial goals, the start of the year is a great opportunity to get a list going. Consider these resolutions as a springboard.

As we approach the final stretch of 2023, it’s time to start thinking about some New Year’s money resolutions to try to get your finances into great shape for the next 12 months and beyond.

If 2023 wasn’t your best year, cash-wise, the new calendar year offers the opportunity for a fresh start. Setting some goals may help relieve the financial pressure of interest-rate rises and inflation or shore up your long-term plans. Here are a few starting resolutions to consider.

Resolution 1: Set a smart savings plan

If you’ve got a short- or long-term money goal, January 1 could be the ideal time to create a new saving habit. Consider mapping out how much you can reasonably afford to put aside across the year, then making regular contributions to a Police Bank savings account.* [JM1] With rates higher than they have been in the past few years, you may also be rewarded with some extra interest on your balance, depending on how much you save.

Resolution 2: Tackle debt

If you’ve been concerned about your debt in the face of rising interest rates, some New Year’s downtime could be the chance to work on a strategy to pay it down. There are a number of methods to reduce debt and your best individual approach depends on your preferences and circumstances.

Remember, you can always call the National Debt Helpline on 1800 007 007 if you need additional support.

Resolution 3: Revisit or set up safety nets

As the past few years have taught us all, curveballs can land at any time. To prepare for unexpected events, consider setting up or topping up an emergency fund in the new year. It’s an account reserved for surprise events, such as urgent medical expenses or car costs you weren’t anticipating.

The new year could also be an opportunity to look at your insurance and make sure it’s fit for your needs.

Resolution 4: Check in on how you’re tracking for retirement

Whether you’re in the prime of your career or approaching retirement, it’s worth checking in on how your super is tracking a few times each year. Key questions to consider asking include whether you’re contributing enough for the retirement you want. Everyone has different plans for their golden years, but the ASFA Retirement Standard offers a benchmark to think about or how much a modest or comfortable retirement may cost.

If you need some personalised advice in the new year, you could consider seeing a financial planner.

Resolution 5: Look at ways to cut back

If the past year has put a bigger hole in your budget than you’d like, it could be worth thinking about some ways to reduce costs in 2024. For example, you could plan to renegotiate your phone or energy contract, trim down your under-used memberships and subscriptions and set a more stringent weekly groceries plan.

While everyone’s resolutions will be slightly different, depending on their plans and stage of life, setting goals you can stick to could be the key to a very happy new year, financially speaking.

* Police Bank Ltd ABN 95 087 650 799; Australian credit licence and AFSL 240018. Terms, conditions, and eligibility criteria apply. Savings Account Interest rates may vary and are subject to change. Visit our website for more information.

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