2024 is calling your name, we hear it! Time to set yourself up for financial success. In fact, one of the absolute best ways to achieve success is to prepare yourself now to make next year your best financial year yet. Inflation may be high and there may be a recession (never a dull moment), but that doesn’t mean you can’t get ahead. The best way to do that is to focus on things that are within your control. Here are 5x budget tips for 2024 to start your year off right.
5x budget tips for 2024
The 5 tips we are going to give you for 2024 are the following:
- Update and check your budget
- Clean up!
- Make paying off your debts a priority
- Check your buffer
- Provide multiple sources of income
1. Update and check your budget
There is no better way to start the year than by checking and updating. Nothing ever stands still in life, and that includes your finances.
Start by assessing your monthly income. Did you get a raise at work? Have you started a side hustle? Have you started earning more as a self-employed person?
Look at your expenses, too. Consider all possible changes in the past year:
- Inflation (might your budget for groceries need to change?)
- Rent payments/mortgage interest
- Gas and electricity
- Childcare/daycare
If you don’t update your monthly budget regularly, you should do so at least once a year, and the New Year is the perfect time to do so.
2. Keep what you use, get rid of things not used
A common example is streaming services. How many of us subscribe to streaming platforms such as Netflix, Videoland, Disney+, YouTube TV, HBO and many more?
If you use all these services regularly and it fits within your budget, that’s fine. But I bet most of us are subscribed to streaming services that we don’t use regularly. You can save hundreds, if not thousands, of dollars by cutting what you don’t use.
This applies not only to streaming services. Is there a gym membership you don’t use? Then start exercising or cancel your membership! What about the other subscriptions? Review your credit and debit card statements to find current subscriptions you may have forgotten about. Get rid of things you don’t use.
3. Focus on your debts
Debt is like a block. Debt can get in the way of you becoming financially independent. Because you’re spending money on interest and monthly payments, that’s less money left over for saving and investing. Once your debt is paid off, you will find that you have much more room in your budget! If paying off debt was not a priority in 2023, make it a priority in 2024!
A little note, though: you are in debt, and you are in debt. A mortgage is a debt, but so is borrowing on installment at Wehkamp. Or high credit card debt. The latter two tend to have much higher interest rates. Try to pay these off as soon as you can so you can start with a clean slate.
4. Check your buffer
It’s always a good idea to check that you have enough money set aside for lesser times. A buffer aims to cushion you financially when an unpleasant life event occurs such as divorce, loss of income, death of partner, illness, etc. A general rule of thumb for a buffer is to save three to six months of living expenses.
If you want to replenish your buffer, it is smart to use a clever trick to do so. How about these 2:
- 1% rule. In month 1, try to save 1% of your income. Will this work? Nice, in month 2 you are going to save for 2%. You increase this continuously until you can set aside a monthly amount you are satisfied with.
- 50/30/20 rule. 50% of your income is reserved for fixed expenses, such as rent or mortgage and health insurance. 30% you use for everyday expenses, such as groceries, as well as clothes and things from the drugstore. 20% of your income, once deposited, you put into your savings account.
Read this blog to learn more about saving.
5. Provide multiple sources of income
So, 5x budget tips for 2024 to start your year off right. The last financial tip we know you can apply in 2024 is to make sure you have multiple sources of income. And believe us, it doesn’t have to be as hard as it sounds. Setting a budget is very important. But you can only turn the save button to a limited extent, but earning more – through side hustles, negotiation and passive income – can give a huge boost to your financial situation!
There are so many ways to earn extra income these days, through a side hustle, for example. You might think of:
- fill out surveys online
- tutor
- sell e-books
- print on demand
- and more!
Read an article with 11 side hustle ideas you can pick up from home here!
Don’t have time to set up a side hustle, but want to focus on earning more? Negotiating your salary is always a smart idea. Read good tips for your salary negotiation here. How about investing in dividend stocks that can give you a passive income every month? Read more about dividend investing here.
