Introduction
LINCOLN, Neb. (KOLN) – As the new year begins, it’s a perfect time to reflect on your financial habits and identify areas for improvement. Tim Kulhanek, an advisor at Stonebridge Insurance and Wealth Management, shares essential tips to help you get your finances in order for 2024.
Develop a Savings Plan
Set specific savings goals, such as building an emergency fund, saving for retirement, creating a college fund for your children, or preparing for significant purchases like a car or home. To stay committed, open separate accounts for each goal and set up automatic contributions. Begin modestly by contributing at least 5% of your paycheck to your retirement plan and increase this to 10-15% when you receive a raise.
Minimize New Debt
With borrowing costs expected to rise in 2024, prioritize paying off your credit card debt. Using cash instead of credit can help you avoid overspending and manage your budget more effectively. Consider the avalanche method (paying off high-interest debt first) or the snowball method (paying off the smallest balances first) to tackle your existing debt.
Enhance Financial Knowledge
Improving your financial literacy can start with small, achievable steps like reading one article per week or listening to a financial podcast. Resources such as Investopedia offer valuable information on a wide range of financial topics. Kulhanek emphasizes, “Investopedia is a great place to learn about various financial subjects, from managing cash to understanding savings and checking accounts.”
Maintain Accountability and Flexibility
Writing down your financial goals can help keep you on track by providing a visual reminder of your progress. Enlist a family member or friend as an accountability partner to keep you motivated. Remember, it’s important to balance financial goals with enjoying life, so adjust your savings targets as needed while still making progress.
Kulhanek advises, “It’s important to create lasting memories and experiences with your loved ones. We need to follow a general plan to achieve our goals.” Adjust your savings plan if necessary to cover essential expenses, and consider increasing your savings if you receive a raise.
Additional Beneficial Information
Practical Budgeting Tips
Creating a realistic budget is essential for managing your finances effectively. Tracking your spending and setting clear financial goals will help you make informed decisions and stay within your budget. Budgeting apps can assist in monitoring your finances and ensuring you are on track to meet your objectives.
Leveraging Technology for Financial Management
Technology provides numerous tools for managing your finances, including online banking, budgeting apps, and financial planning software. These tools help you stay organized, monitor your finances, and plan for future financial needs more efficiently. Utilizing these resources can lead to improved financial stability and success.