Five Financial New Year's Resolutions for The Modern Women To Take In 2024
Updated: Jul 2
The New Year is finally here, and with it comes new year’s resolutions and a focus to do better and achieve more than the previous year.
So, what do you want to achieve? Are you focused on financial solutions that will help you achieve your financial goals?
In this article, I will discuss FIVE Financial New Year’s resolutions to achieve financial freedom in 2024.
Let’s become a Mujer Investor and check out these five financial New Year's resolutions that modern women might consider to achieve financial freedom in 2024:
First, let’s begin with the understanding that “Financial freedom” means totally different things to people. Still, it generally refers to the ability to have control over your financial resources and the freedom to use them in a way that aligns with your values and goals.
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Taking financial resolutions and action to achieve them can be helpful steps toward financial freedom.
Among other things, making financial resolutions helps achieve the following:
To improve financial stability: Taking control of your finances can help you feel more secure and stable now and in the future. It can also prepare you for a future of financial control and planning.
To reach financial goals: Financial resolutions can help you work towards specific goals, such as saving for a major purchase, a down payment on a home, or paying off debt.
To reduce financial stress: Managing your finances effectively can help reduce stress and improve your overall well-being. This can lead to a financial sense of security and less worry.
To prepare for the future: Financial resolutions can help you plan for the future, whether saving for retirement, preparing for your children’s college, or creating a budget to achieve your long-term goals.
To achieve financial independence: By taking control of your finances, you can work towards financial independence and make your own decisions about managing your money.
Overall, financial New Year's resolutions can be a helpful way for women to take control of their finances and work on the financial stability and security they desire.
Here are five Financial New Year's resolutions that modern women might consider to achieve financial freedom in 2023:
1. Build an emergency fund:
Protecting your financial well-being by building an emergency fund is very important. This will give you financial ease, and you will have funds to fall back on in case of unexpected expenses or income disruptions.
One essential step toward financial freedom is building an emergency fund. It can help you cover unexpected expenses that may cause financial stress if you are unprepared to cover them. Expenses like car repairs or emergency medical bills can be costly and incur debt. The emergency fund can also provide a financial cushion if you experience a sudden job loss or a temporary reduction in hours.
Your savings in an emergency fund should be significant enough to cover at least three to six months of living expenses. This will give you time to find a new source of income or make other financial adjustments if necessary. It's a good idea to keep your emergency fund in a separate, easily accessible account, such as a high-yield savings or money market account. This way, you'll easily access the funds when needed and earn interest on your savings.
Provided below are some steps that you can take to build an emergency fund:
Determine how much you need to save: Consider your monthly expenses and determine how much you need to save to cover at least six months of living expenses.
Set a savings goal: Set a goal for how much you want to save and by when. This can help motivate you and give you something to work towards.
Create a budget: Create a budget to help you allocate your resources effectively and make room for saving. You can download the MUJER INVESTOR BUDGET FOR FREE.
Cut expenses: Find ways to cut expenses and free up more money for your emergency fund. Always consider a want vs. a need and make an effort to commit to cutting unnecessary expenses.
Automate your savings: Begin by setting up an automatic transfer from your checking account or your employer's direct deposit to your savings account so that you can save consistently without forgetting to do it manually. Additionally, set up an automatic transfer to your emergency fund and vacation accounts. If you lack the discipline to save, automate your savings and do not get debit cards or checks for your savings accounts.
Consider earning additional income: Consider taking on a side job or asking for a raise to help increase your income and accelerate your savings.
Choose a savings vehicle: Consider opening a high-yield savings account or a money market fund to earn interest on your savings and help them grow.
Plan for big purchases: Consider planning for big purchases, such as a new television, laptop, or furniture. Allocate and save every month until you can pay for the item in cash.
2. Create and stick to a budget:
A budget can help you better understand your financial situation and make informed decisions about allocating your resources. Be sure to review your budget regularly and make adjustments as needed.
Creating a budget is an essential step in achieving financial freedom. A budget is a detailed account of where you are allocating your income and expenses over a given period, usually a month. It can help you better understand your financial situation, identify areas where you may be able to cut costs, and make informed decisions about allocating your resources.
You must gather information about your income and expenses to create a budget. Start by listing all of your sources of income, such as your salary, second income, and any other sources of income you may have. Then, list all your expenses, including fixed expenses (such as rent or mortgage payments) and variable expenses (such as groceries and entertainment).
Once you have a complete list of your income and expenses, subtract your expenses from your income to determine your net income. If your expenses exceed your income, you must find ways to reduce or increase your income to balance your budget.
It's important to review your budget regularly and make adjustments as needed. This will ensure that you're making progress toward your financial goals and help you stay on track.
Here are some steps you can take:
Determine your income: Start by writing down your monthly income from all sources, including your salary, other sources of income, and investments.
Identify your expenses: Make a list of your monthly expenses, including fixed expenses (e.g., rent, car payment) and variable expenses (e.g., groceries, entertainment). Remember always to PAY YOURSELF FIRST and, as a rule, add your savings and investments as an expense to your budget.
Track spending: Use a budgeting app or tracking tool to record your spending for a few weeks to understand better where your money is going.
Set budgeting goals: Determine your financial goals (e.g., saving for a down payment on a home or paying off debt) and determine how much you need to save monthly.
Create a budget: Based on your income and expenses, create a budget that allocates your resources in a way that helps you achieve your financial goals.
Review and adjust your budget: Regularly review your budget to ensure you are on track and make adjustments as needed.
Find ways to save: Look for ways to cut expenses and save money, such as by negotiating bills, cutting unnecessary expenses, or shopping around for the best deals.
Be flexible: Be prepared to adjust your budget as your income or expenses change. But, most importantly, ALWAYS PAY YOURSELF FIRST! If you get a raise or have additional income in your household, make sure you save a percentage of that income. For example, if you get a $100 raise, save $50.00 or any amount that benefits your situation. Just make a point to get into the habit of saving!
3. Save for retirement:
It’s never too early to start saving. Consider opening a 401(k) or IRA and setting aside a monthly contribution.
A 401(k) is a retirement savings plan many employers offer. It allows employees to save and invest for their retirement on a tax-deferred basis. This means that you can contribute a portion of your income to your 401(k) account before taxes are taken out, and your investments within the account can grow tax-free until you withdraw them in retirement. In addition, many employers offer matching contributions to their employees’ 401(k) accounts as an incentive to save for retirement. Ask your employer if they offer a 401(k) and enroll in their program. Begin taking action today!
An IRA, or Individual Retirement Account, is a type of personal retirement savings account. There are several different types of IRAs, including traditional IRAs, Roth IRAs, and SEP IRAs. Each type of IRA has its own set of rules and tax advantages.
A traditional IRA is a tax-deferred retirement savings account. This means you can contribute to the account on a tax-deductible basis, and your investments within the account can grow tax-free until you withdraw them in retirement.
A Roth IRA is a retirement savings account funded with after-tax dollars. This means that you do not receive a tax deduction for your contribution. Still, your investments within the account can grow tax-free, and you can withdraw your contributions and earnings tax-free in retirement if specific requirements are met.
A SEP IRA is a retirement savings account that small business owners and self-employed individuals commonly use. It allows you to make tax-deductible contributions to a retirement account for yourself and your employees.
Importantly, Saving for retirement is a financial goal you should start working on as soon as possible. The sooner you begin saving, the more time your savings have to grow and the more prepared you'll be for retirement.
You can choose from several retirement savings accounts, including 401(k) plans, traditional IRAs, and Roth IRAs. Each type of account has its own set of rules and tax advantages, so it's essential to do your research and choose the account that's right for you.
For more financial tips, check out these articles:
The Top 5 Strategies Women can Implement to Prepare for Retirementhttps://www.mujerinvestor.com/post/the-top-5-strategies-women-can-implement-to-prepare-for-retirement
One of the most important things you can do to save for retirement is to set aside a portion of your monthly income. You can do this by setting up automatic contributions from your paycheck or making regular deposits into your retirement account. Even small contributions can add up over time, so feel free to start small and gradually increase your contributions as you can.
In addition to saving for retirement, it's also a good idea to create a retirement plan that outlines your goals, such as when you'd like to retire and how much income you'll need in retirement. This will help you stay on track and progress toward your retirement goals.
4. Invest in your education:
Continuing your education can help you improve your job prospects and earning potential.
Look for opportunities to learn new skills or pursue additional certifications. Investing in your education is a great way to improve your job prospects and earn potential. Continuing your education can help you stay current, learn new skills in demand, and qualify for higher-paying jobs.
There are many ways to continue your education, depending on your interests and goals. For example, consider taking individual courses or earning a certification in a specific area. You could also pursue a degree program, such as a bachelor's or master's degree, to further your education and advance your career.
It's essential to carefully consider your options and choose the education path that makes the most sense. Before deciding, research your options and weigh each option's costs and benefits.
Remember that investing in your education can be a significant financial investment. However, the long-term benefits of increased earning potential and career advancement may make it well worth the cost.
5. Seek professional advice: It can be challenging to navigate financial decisions independently:
Consider working with a financial planner or advisor to help you make informed decisions about your financial future. Seeking professional advice can be a helpful way to navigate financial decisions and make informed choices about your financial future. A financial planner or advisor can provide expert guidance and support as you work towards your financial goals.
There are many different types of financial professionals you can work with, including financial planners, investment advisors, and insurance agents. Each type of professional can offer different services, so it's essential to research and choose the right professional.
Bottom Line:
When seeking professional advice, it's important to do your due diligence and choose a qualified and reputable professional. Look for certified professionals with a track record of helping clients achieve their financial goals. Be sure to ask questions and understand the services and fees being charged.
Working with a financial professional can be valuable as you navigate financial decisions and plan for your future. However, it's important to remember that it's ultimately your responsibility to make your own financial decisions and to take an active role in managing your financial affairs.
It's essential to create a financial plan that includes setting specific and achievable goals, tracking your spending and saving, creating a budget, and seeking professional advice to take control of your financial future in 2023.
By Edith Lagunas, Mujer Investor
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Disclosure: I may receive affiliate compensation for some of the links below at no cost if you decide to purchase a paid plan. This is for entertainment only and is not intending to provide financial advice.
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