12 Tips to Get Your 2024 Financial House in Order!

My favorite Albert Einstein quote is, “The definition of insanity is doing the same thing over and over again and expecting different results!”  This holds true for many aspects of life, including one’s finances.

I like to compare finances to team sports.  Most team sports (other than baseball) have some type of halftime break.  Coaches and managers utilize this time to analyze what happened in the first half and make adjustments to get an edge and increase the potential for second-half success.

There is no time like January of 2024 to make your adjustments, if needed to help ensure your financial success this year. 

Consider the following tips if applicable:

1. Consolidate Financial accounts: Consider closing 1 or 2 small financial accounts that you are not tracking or that don’t have significant monies.  This will save brain space, reduce statement clutter, and avoid the payment of unnecessary fees.
2. Increase your 401k/employer retirement contributions: If you are not currently enrolled, sign up for your company 401k and start by putting 1% in this year.  If enrolled, raise your contributions 1% per year.  You won’t feel the difference; however, over time, it can make a major impact when entering retirement.
3. Develop a budget and/or expense statement: Review credit cards and bank and checkbook statements to get a handle on your inflow and outflow of money.  Consider starting to use a program like QuickBooks, or if old school, draft a budget manually and hang it up where you can see it.
4. Set up a system to systematically save money:  If you are not saving, consider something informal such as putting $20 a week in a jar.  Consider formal ideas like buying a cash value life insurance policy, setting up an EFT (electronic funds transfer) through your bank account or systematic contribution to mutual funds. 
5. Protecting Your Health Saves Your Wealth: We all know about the escalating cost of health insurance and health care in general.  Renew that yoga studio or gym membership, and dust off that Peloton in the garage or basement. 
6. Bring balance to your life: Take that vacation you have been putting off.  Rest and rejuvenation can impact your health.  Statistics show that those who work 46 weeks per year will outproduce a 52-week per year worker. It will give you something to look forward to and forces one to be very productive before leaving and when returning home.  Use frequent flyer miles if possible.
7. Organize your paperwork: It’s hard to feel in control when you can’t find anything.  Gather all papers, shred duplicates, old statements, and place them all in a box or accordion file.
8. Go Paperless:  I know habits are hard to break.  Wherever possible create electronic files.  See if you can receive e-bills instead of paper.  Use a flash or thumb drive as a backup and keep duplicates off-premises.
9. Protect against identity theft: You can request a free copy of your credit report once per year from all 3 credit bureaus.  Go to www.AnnualCreditReport.com
10. Put your finances on autopilot: Use EFT direct deposit for all checks, pension, and social security funds received.  Set up automatic payments for recurring bills.  It’s easy and will save time going forward.
11. Create your 2024 tax file: Most people have to scramble to pull together all tax forms etc.  Start now by setting up a 2024 file and stashing forms and receipts etc. as needed.
12. Review your insurance coverage:  Protect your nest egg and your family by regularly reviewing your life, health disability, and long-term care insurance.  If this is confusing to you, contact us for assistance.

One’s financial house needs regular upkeep.  Putting in a little time and organization will decrease clutter and help you focus on achieving your goals and objectives!