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 5 financially smart ways to start 2024

financially smart ways to start 2024

Feel inspired to prioritise your money management in the new year with the top 5 financially smart ways to start 2024

As 2023 comes to an end and we start to look ahead, it’s the perfect time to take stock of your finances and find ways that you can be smarter with your money in 2024. If you’re ready to make your money work harder for you in the new year, here are our top tips:

  1. Set clear goals

No matter whether you’re someone who likes to start the new year by making resolutions or you prefer to go with the flow, setting financial goals can help you go into 2024 on the right track.

Your goals don’t have to be big; in fact, small, clear, and achievable targets may be more effective. Aiming to become completely debt free or save a house deposit, for example, can work better as longer-term goals for the next three or five years.

Instead, consider committing to things like adding £50 a month to your savings, having a no spend day each week, or cutting your quarterly clothing budget from £200 to £100.

You might have noticed that all these example goals have specific numbers attached; making your aims quantifiable can make them easier to achieve than vague aspirations like resolving to spend less and save more. 

  1. Review your budget

A good budget should be flexible and reviewed often. One financially smart way to start 2024 would be to rework your existing budget or create a new one if you don’t have one in place already.

Make sure your essential costs are up-to-date and reflect your current circumstances; if you’ve set aside £100 a month for your electricity bill, for example, but you know your bills were closer to £150 in 2023, it’s time to recalculate.

Your budget should also reflect your personal financial goals. If paying down your debt is your priority, you may want to limit the amount you put into savings for the time being. In contrast, if building a solid retirement fund is top of your to do list, you might want to set aside a larger percentage to spend on investments or paying into a high interest savings account.

  1. Top up your emergency fund

It’s often said by financial experts that not having an emergency fund is an emergency. Your emergency fund is a pot of money that is set aside to cover unexpected costs.

Ideally, it should cover at least three months’ living costs so that you don’t have to panic if you suddenly lose your job, or your household income decreases unexpectedly. An emergency fund can also come in handy if your boiler breaks down or you’re in a crash and need to replace your car quickly.

If you’re starting 2024 without an emergency fund, this might be a good goal to implement for the year. On the other hand, if you’ve dipped into your fund during 2023, now’s the ideal time to top it back up again so you don’t get caught short if the worst happens.

  1. Tackle any debts

Tackling debts can be daunting, especially if you’ve been putting them off for a while or struggling to make payments on time. Why not make 2024 the year you seek professional debt help?

An expert debt adviser can take an impartial view of your situation and talk you through all the options available. They may even be able to liaise with your creditors on your behalf or help you make the most of government programmes like Breathing Space, which can give you time to find the right debt management solution.

Having a formal or informal debt management solution in place could help you make real progress on paying down your debt by the end of 2024 and may even improve your mental health. 

  1. Check your credit score

No matter what you have planned for your finances in 2024, knowing your credit score can help. Kick-start the habit of checking your report with each of the UK’s three credit reference agencies every month.

The good news is that it’s free; you can sign up to view your score with Experian directly, with Equifax through Clearscore, and with TransUnion through Credit Karma.

Not only can knowing your credit score help you know where you stand when applying for types of credit like a mortgage, personal loan, or credit card, but it can also help you spot mistakes and get them fixed quickly.

Ready to tackle your debt in 2024? Our team are here to help you negotiate a repayment plan. Give us a call on 0161 660 0411 or send a message here

 

 

 

 

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Credit Score Pop Up Wording : An Individual Voluntary Arrangement (IVA) is a formal agreement with creditors to repay a portion of your debts over time, but it does have an impact on your credit score and it will be difficult to obtain further credit whilst on an IVA. Once an IVA is approved, it is recorded on your credit report and will typically remain there for six years from the date it starts.
However, it’s important to note this is the case for most debt solutions and your credit score will likely already have been affected by being in debt in the first place.
Once your IVA is complete you will get a fresh start to begin rebuilding your credit rating.

Fees

IVA costs are charged for the preparation of your proposal and the administration of the arrangement for the full term (usually 5 years) these costs are charged from the monthly contributions you make into the IVA and are not in addition. Costs will only be recovered on approval of your arrangement and once you commence making payments to it. The fees for preparation of the proposal to creditors and calling the meeting for creditors to vote on its approval are called nominees fees, the fees for running the arrangement once approved are called supervisors fees. There are also some expenses incurred in the running of the arrangement such as the registration fee and the statutory insurance that needs to be taken by law, these are called disbursements. For our arrangements, the total of all of these is £3,650 although this may be adjusted by creditors when they vote on whether to accept. No matter what the end total of costs come to, you can be rest assured that these will be taken from the monthly payment we agree with you.