As the new year approaches, there is no better way to lay the groundwork for financial success. Whether you want to save for a major purchase, invest in the mortgage, or renovate your home, careful financial decision and financial planning is critical.  Indeed, finances do not stay constant throughout the year. 

It may shift due to any economic challenge, financial drawback or fall in salaries. Thus, given the fact that financial situations may impact your budget’s bottom line, one must review it often.  As one proceeds an inch closer to the New Year, it’s high time to think about financial goals for 2024 and what it will take you to achieve the goals.

If you want to get a better hold over your finances but cannot determine the starting point, the blog may help.

How to make critical financial goals that help stabilise wealth?

The financial goals may differ according to the person’s finances, income, liabilities and life goals. Whatever your income or goal is, these basic strategies to multiply and stabilise wealth may certainly help you.  Here is how to make financial goals that are easy to work upon and achieve:

1)      Identify the credit card debt payment plan

Something that an individual struggles with the most is- timely credit card payments. Around 78% of individuals cannot pay the payment on the due date and it enter the debt. Furthermore, penalties and additional costs make the repayment worse. Ultimately, one receives a CCJ or debt clearance notice from the card provider and this impacts the credit score.

Optimise Goal 1: Research the best options regarding credit cards. Choose only one that aligns well with your finances. You can also pick one according to your goals. For example, for a big-ticket purchase, an introductory credit card is the best option.

It eliminates interest costs. Similarly, if you stick by the utility and the goal, you will have only the credit card. It would reduce the investment towards credit cards. Moreover, setting a budget or direct debit helps one pay the bill timely.

Alternatively, avoid using one in emergencies or short-term requirements. Instead, check affordable options like short-term loans in Ireland’s marketplace hassle-free. These are easy to budget and clear.

 

2)      Invest more towards an emergency fund

An emergency fund is the best way to finance critical life requirements when finances fall below the normal range. For example, it helps in situations like- unemployment, a business shutdown or a property loss.

Optimise Goal 2:If you encounter several finance slowdowns this year and find finances insufficient to tackle the phase, invest more towards the emergency fund. It would help you avoid financial uncertainty and secure a sufficient amount. Sometimes, you never know the amount you may need. Thus, individuals with sound income can benefit from a flexible amount of emergency funds.

You must save a higher amount than the previous one this time. It would help you with a more financial cushion in 2024.

3)      Pay off pending debts this year

If you are habitual to delaying the debts until infinity- restrict that habit now. It affects the pace of achieving other goals and raises financial anxiety. Individuals with too many pending debts on the credit report often delay due to low self-esteem or finances. It is true saving amid inflation is quite challenging. However, you must not be hopeless. Figure out the best ways to clear debt

Optimise Goal 3:If you struggled to pay debts in full in the last year, identify the loopholes. Was it the low salary or expensive home renovation that you went for that disturbed the finances? Knowing the root cause of protruding debt may help you decide right.

For example, if it is because of insufficient income, seek ways to gain a promotion or switch jobs. Begin with the small debts first. Going bit by bit will help you pay the debts gradually. Moreover, identify the penalty and interest costs. It would help you decide the best one to pay first.

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4)      Set automatic transfers to your Retirement Fund

Retirement fund is the best way to create and build wealth for the after-job lifestyle. It makes your future secure in the good old days. However, if you do not have one until now, make it a point to invest in one this year.

You can check an individual retirement fund and analyse the money you can dedicate per month to it. It would help you safeguard your future and prevent you from any financial panic moments later in life.

Optimise Goal 4:  Well, you may find it hard to determine the contribution you must make to the retirement fund. If you cannot find the amount you can afford per month, set up an approx. The amount depends on previous years’ monthly savings. Starting low may help you be regular with the monthly investments.  For example, if you are 30, and want to max out your IRA in 2024, you must contribute around €541/month. It would be more if the contribution limit rises. 

The most common reason behind missing the goals is unexpected expenses. To counter this, you can rely on loan agencies in Ireland for help. Instead, of using savings, the loans may help you counter emergencies and medium-term needs with financial assistance from expert providers.Furthermore, it would help you save the required amount for retirement funds.

Bottom line

Identifying scalable and achievable financial goals for 2024 may help you embark on the new journey hassle-free. It would help you avoid financial glitches. Moreover, having clarity over financial goals will help you manage and re-adjust cash in the most investment-friendly way. It is one of the best ways to build wealth.