Now that we’re gearing up for 2024, it’s a good chance to start reflecting and resetting after a busy year.
So what should we be doing with our finances over the next year?
With the cost of living challenging us all this year (or at least 92% of us, says research from Aware Super), there’s been no better time to focus on our finances and set ourselves up for success in the new year.
In this episode, Kate Campbell and Owen Rask share four things you can do to put yourself in a better position heading into 2024.
Automate the good things (like saving & investing)
How can we use technology to reduce decision fatigue in a world where we make up to 35,000 decisions daily? Automating my finances has been a game changer. I don’t have to make additional decisions every month when I’ve got a lot on my plate.
Here are some of the things you could consider automating:
- Money into your savings account after you get paid
- Money into your investment account (or into your portfolio if your broker offers automated investing)
- Money into your super fund
- Your credit card to be paid off in full each month
- Your mortgage or rent payments
- Your bills like electricity, gas, water, health insurance & NBN
- Regular calendar reminders to review your budget and financial goals
Review ALL of your regular payments
On the flip side, companies can use automation against you. You know those free 7-day trials that require your credit card or those sneaky subscription renewals that happen with no warning?
Set aside an hour to go through all your regular expenses and identify what can be cancelled, downgraded, renegotiated or switched to a better deal. Remember, in the world of money, loyalty doesn’t pay, so be savvy!
Create a cash buffer to get through unexpected expenses
If you’ve got your emergency fund sorted (3-6 months of essential living expenses), it’s worth building up a separate cash buffer (e.g. $1,000).
I can’t tell you the number of times a ‘surprise expense’ has popped up that, while not an emergency, doesn’t fit into your budget.
Having a cash buffer makes it easier to budget and prepare for the chaos of life.
Set yourself a north star to work towards
Look, I get it. We’re not all goal-setting diehards. For some people, making progress is enough, and that’s awesome! But I think it’s really important to work out what your north star is, the thing you’re doing it all for.
Maybe it’s for financial freedom or a backpacking trip around Europe when you finish uni.
Over to you! What actions are you taking to set yourself up for success next year? Let us know on Spotify or via Instagram.
