It’s time to embrace 2024 with a fresh financial perspective. It’s no secret that managing money can feel like a difficult task, but a few simple changes can yield significant financial returns with minimal effort. Intrigued? So let’s dive into the ins and outs of your finances this year and discover how to make your money work for you!
The Modern Twist on the Jam Jar Budgeting Method
Even the affluent need to budget. The jam jar method of separating money into different pots is as old as the hills, but it’s effective. It has also been given a digital update with the ability to create separate “pots”, “jars” or “spaces” within your online bank account, and automatically allocate separate sums into these on payday.
Setting up a separate bills account can be transformational for your finances. After totting up your regular monthly payments, set up a direct debit to transfer your share to the bills account. Keep your fixed costs separate and it’s obvious how much you have left to spend, save or invest.
The Three Jars Approach
Think of your savings as sitting in three separate jars. You have your emergency fund in an easy access savings account; a separate account for things you want to do within a year or two like holidays or a big life event, and then anything over and above that can be invested in the stock market for the long term.
Setting up “sinking funds” for putting aside money monthly for annual expenses, such as renewing insurance policies, tax bills or even next Christmas — payouts that might otherwise be big pinch points.
Mortgage Matters
If your mortgage fix comes to an end in 2024, start looking for a new deal up to nine months beforehand. Use an online mortgage calculator to get a sense of how your monthly payments could increase, and speak to a mortgage broker early in the process.
Financial markets expect interest rates to fall in 2024, providing respite for borrowers — but grab the best deals on savings accounts while you can.
Invest in Yourself
Think beyond the stock market — your most important investment in the year ahead could be yourself. Investing in yourself could be completing a course, gaining a qualification, trying public speaking, learning to code or even learning a language. You could be one skill away from doubling your income.
Once you’ve increased your capacity to earn, which then stays with you for the rest of your life, you can then invest more of that money into financial assets, your pension and so on.
Be Politically Engaged
This year promises a huge political moment on both sides of the Atlantic, but what could it mean for your money? Manifesto promises are likely to favour older voters, but experts urge the under-30s to become politically engaged and campaign for change.
While investors could see a change of government, they should stay focused on the long term. A good investment strategy should never change, no matter which way the wind is blowing.
Set Financial Boundaries
With so much pressure on budgets in this year, setting financial boundaries for yourself is vital. For this and other dilemmas, protecting your budget may well involve having to say no.
Use the “sandwich theory” to deliver bad news. Start off by saying a positive thing, then insert the no, then round off with a positive thing. This is a far more palatable way to receive a no.
Stay Informed
Subscribe to financial podcasts and newsletters to stay updated with the latest financial news and tips. This will help you make informed decisions and keep your financial life sorted.
Transform Your Wealth in 2024
This has been your comprehensive guide to mastering your money in 2024. Remember, the key to financial freedom lies in making informed decisions, setting clear financial boundaries, and investing in yourself. So, let’s embrace this new year with a new money regime and make 2024 our most financially successful year yet!