It’s that time of year where we gear up for the “new us.” It’s natural to consider some improvements we aspire to make – such as our health, relationships, or personal development. Among these resolutions, it should also be a priority to focus on our financial well-being, to create a sturdy foundation for the future. To set yourself up for a successful 2024, consider these steps to optimize your financial confidence.
#1 Figure Out How Much You’re Spending
You’re not bad with money; perhaps you just haven’t taken the time to take control of your personal finances. The first step toward financial empowerment is understanding your spending patterns. Set aside an hour or two to dive into the past three months of your expenses; this exercise will spotlight opportunities you might have overlooked. Awareness is a powerful tool – maybe even just as powerful as budgeting and can significantly impact your financial decisions.
#2 Automate the Surplus
Take a look at your income and subtract your expenses to determine your surplus. Identifying areas where you can cut back on spending and increase your income can open doors to new opportunities you wouldn’t have known otherwise.
Once you’ve established your surplus, the next goal is to automate those savings. This is by far one of the most effective strategies. I always say money not saved is spent and often impulsively. By automating your surplus funds into designated accounts, you create a money-making machine. Remember, money saved is money earned – and with a clear savings goal, you can reach financial freedom earlier.
#3 Invest Early and Consistently
If you understand the power of compound interest, then you understand the key to accumulating wealth. Additionally, investing early and consistently, well, you’ve just unlocked the power to have your money work for you over time.
By simply following these three steps before we head into 2024, you're not just starting a new year – you're setting yourself up for a transformative financial journey.
Five Pine Wealth Management is an Investment Adviser registered with the Securities & Exchange Commission (SEC), principally located in the state of Idaho. All views, expressions, and opinions included in this communication are subject to change. Please contact us if there is any change in your financial situation, needs, goals or objectives. The information contained in this electronic communication is intended only for the use of the recipient. For your privacy and security, do not include sensitive information using emails that are not secured. The information provided should not be relied upon as the sole factor in an investment making decision. Past performance is no guarantee of future results.