Happy New Year! By now, lots of people have made resolutions for 2024 - but have you considered your financial health? January is the perfect time to cast a discerning eye over your finances and take back control. A thorough evaluation of your current position also helps set financial goals for the year ahead. With our checklist, you can put positive habits in place that will carry you through the New Year and beyond. Let’s dive in!
Take stock of your current spending and try to eliminate bad habits
When conducting your review, it’s important to begin by taking a closer look at your current spending patterns. Grouping your outgoing expenses into 'needs' (essential expenditure) and 'wants’ (discretionary “treat” spending) is a simple but effective tool. Use bank statements and a highlighter if you’re having a digital detox or financial apps if you’re tech-savvy. Hold yourself to account for recurring ‘wants’ – as the adage goes, look after the pennies and the pounds look after themselves!
Go with the (cash) flow
Steady cash flow is fundamental to your financial health. In an ideal world, you will have an amount left over at the end of the month after your essential expenses that you can syphon off for your tax return (if you’re self-employed), use to cultivate a rainy-day fund or even as a reserve to cover emergency expenses. Life is unpredictable and having a financial safety net can alleviate stress during unexpected situations. Aim to have three to six months' worth of living expenses set aside in a liquid and easily accessible account. Accidents do of course happen to the best of us, and if your rainy-day fund falls short, you could always consider taking out a personal loan to cover the deficit. This could provide the boost you need in the short-term; and manageable repayments will keep you on track in the long term as well.
Optimise essential expenses
With a keen eye on your spending habits, it's time to optimize essential expenses. Review service providers for utilities, insurance, and other necessary services. Are you getting the best value for your money? Take advantage of January deals with mobile or broadband providers but do be sure to make a note in your diary of when the introductory offers expire. If you think that you are paying over the odds on your insurance, talk to us! Our expert team at Cherry Godfrey is dedicated to helping you find cost-effective solutions without compromising on quality. It's the perfect time to ensure you're making informed choices on essential expenditures.
Strategically manage debt
As part of your financial review, develop a strategic plan to manage/eliminate debt and rid yourself of debt-related anxiety. It’s all too easy to accrue pockets of debt, be they via credit cards, store cards, overdrafts, or other liabilities. If this is you, we understand it can leave you feeling overwhelmed. At some point, we've all experienced the stress of money matters, and burying your head in the sand won't make it better- it’s always best to take control of your finances. Debt consolidation is a powerful tool to simplify repayments, reduce interest rates, and streamline your financial obligations. Cherry Godfrey has the tool to help guide you through the process, potentially saving you money and enhancing your financial health.
Plan for the future
Thinking ahead ensures that your financial strategy aligns with your broader life goals. Why not take this opportunity to consider long-term financial planning aspects, such as estate planning (you could also review your Will and update it if necessary)? Life insurance options could provide financial security for your loved ones as well as much needed peace of mind for you – so, whatever stage of life you’re at, it’s worth taking the time to do a bit of forward planning.
Please submit a callback request today, give us a call or feel free to pop in for a chat to discuss your financial planning for 2024 and beyond.
