The Best Financial Start to 2024

8 steps to have the best financial year of your life

The new year means you can create a new you – or keep building on the foundation you already have. To help you on your way, here are eight steps to make this year the best financial year of your life.

1. Get Inspired

”A goal without a plan is only a dream” – Brian Tracy

Without inspiration none of the steps below will work. You need great goals – dreams with a deadline – to spur you (and perhaps your family too) on towards success. Depending on your personality and situation, you might be inspired by:

• Opportunities.
• Security and safety.
• Meaningful experiences such as travel or early retirement.
• Dreams of achievement.
• Giving.
• Other people, such as family members.
• …rather than dreams of possession and consumption. Too many goals of this nature will often fall by the wayside.

As no two people are the same, you should seek and find inspiration in a way that suits you. Once you’ve got it, be sure to write your goals down.

2. Review Your Finances

Once you’re backed by inspiration and know where you want to be, the next step is to do a run-through of your finances and get an idea of where you’re currently at.

A few essential questions to ask yourself:

1. If you changed nothing, would you be on track to meet your financial goals in 12 months’ time?
2. Were there any personal changes over the last year, such as your family, personal circumstances, location, living arrangements and goals?
3. Were there any financial changes over the last year, such as your income, bills, expenses, insurance, investments, debt and savings?
4. What areas need more focus and improvement?

Learn more: your six-step end of year financial checklist

3. Earn More

Who wouldn’t want to earn more this year? By simply earning more money, it can allow you to achieve so many other goals. There are many ways to earn more money:

• Focus on advancement at your current full-time employer. Especially with the pace of technological change, some of you may need to consider a change in employment or even a change in industry.
• Grab a part-time gig to make the most of your free time.
• Start a “side-hustle”. There is no shortage of ideas to choose from, for example: freelance writing, driving for Uber, listing a spare room in your house online, start a blog, dog-walking, etc
• Sell spare household and pastime items.

If you’re retired already, then earning more may mean investing rather than having funds sit idle in bank savings accounts and term deposits.

4. Spend Less

This is a no-brainer, but we thought we’d mention it anyway! For some tips on what to save, look at the 25 worst ways people waste money.

Cutting expenses can only go so far, but still can be a great way to accelerate progress towards the things in life that really matter.

5. Invest in Yourself

Investing in yourself is essential to growing and almost always pays off. There are many ways to invest in yourself. Some include:

• Attending a conference.
• Obtaining a certificate or other qualification.
• Take a course online.
• Getting a mentor.
• Join a mastermind group.

6. Remember to Give

While your budget may be stretched at this time of year, giving to worthwhile causes should always be kept in mind. This offers many benefits, including:

• Makes a positive impact in the world.
• Makes you feel good.
• Can strengthen your personal values.
• Can help your family members, including children, practice gratitude and see the benefits of generosity.
• To grow your income, as studies have shown that giving money does actually influence your income.

7. Protect Your Family and Yourself

How you protect yourself will vary on your circumstances, for example:

• Everybody needs an emergency fund that can be accessed at short notice without disturbing long-term investments. The usual guideline for this is to ensure the contingency fund equals three to six months’ worth of household expenses.
• If you have reason to preserve wealth, family trusts are still the best way to protect assets, though they don’t work in all instances and do have drawbacks.
• If you have anyone who depends on your income you probably need insurance policies such as life and income protection.
• If you’re self-employed or running a small business, you probably need a range of risk management measures.

8. Act Immediately

Reviewing all the points above means nothing if it is not backed with action. To get things underway you need to act right now.

Just remember that you don’t need to be too strict on yourself, either — it will only create unnecessary stress and disappointment. Instead, start with some little steps now and start making better daily choices which will snowball over time.

The Bottom Line: Your Best Financial Year Yet

Let’s recap the eight steps to ensure you have the best possible start to the new year:

1. Get inspired!
2. Review where you are now
3. Earn more
4. Spend less
5. Invest in yourself
6. Remember to give
7. Protect your family, and yourself
8. Act immediately