5 refreshing financial new year resolutions to set for 2024

2024 is already underway – but that doesn’t mean it is too late to instil new year resolutions into your routine.

If you are searching for ways to revamp, revitalise, or rejig your finances this year, keep reading to learn our top five financial new year resolutions, and how to apply them in ways that actually stick.

1. Allow time for new habits to set in

The first and perhaps most important financial new year resolution you could set is to allow time for new habits and practices to set in.

Some experts say a new habit can take up to 66 days to form – so if your new financial behaviours or strategies don’t seem to sink in at first, you are not alone.

Keep plugging away at your goal, and allow at least three months for these resolutions to become second nature, rather than giving up at the first sign of difficulty.

2. Apply a calmer mindset to your money

The 2020s have been rather turbulent for everyone around the world.

The Covid-19 pandemic arrived unexpectedly, causing millions of people to lose or change their jobs, and placing financial strain on many families. Then came the cost of living crisis, which saw inflation reach double figures and put further pressure on the nation’s wealth.

Fortunately, it’s not all doom and gloom. Inflation slowed to just 4% in the year to December 2023, the Office for National Statistics (ONS) reports, signalling a drop in prices in many sectors and perhaps indicating that calmer times are ahead.

While the world of finance is not always tranquil, turning your attention inward and focusing on your own money mindset may be constructive. Although the cost of living crisis appears to be easing, that does not mean your future will be free of financial stressors – so adopting healthy coping mechanisms may be a helpful resolution for 2024.

Some ways you could adopt a calmer money mindset this year include:

• Focus on what you can control. Tuning out the things you can’t control might help you approach your personal finances with better focus and reduce your stress.
• Accept that short-term turbulence is bound to happen. Expecting everything to run smoothly all the time might lead to disappointment. Whereas, accepting that financial volatility is a part of life might remove some of the immediate worry you feel.
• Create a strategy for when things don’t go to plan. If you know you experience financial stress very easily, creating a “panic strategy” may help you cope better. This could include calling a trusted confidant to talk through your worries.

Cultivating a calmer money mindset in 2024 may help you avoid rash decision-making, and could help you sit back and enjoy life a little more easily too.

3. Take practical steps to protect your wealth

If you often spend time thinking about the “what if?” questions in life, a helpful new year resolution could be to take action against these anxious thoughts.

For instance, if you worry about what might happen to your family’s finances if you were to become seriously ill or pass away, putting together a package of protection could help. Instead of passively worrying about these potential eventualities, taking practical steps is likely to be far more constructive.

Protection options you could consider taking out or updating in 2024 include:

• Life insurance
• Critical illness cover
• Income protection insurance
• Private health insurance
• A Lasting Power of Attorney (LPA) document.

Ensuring your package of protection is up to date and sufficient for your family’s needs may be the perfect way to begin the year.

4. Talk to trusted people about your finances

Keeping your goals (as well as your biggest concerns) to yourself can lead to isolation and stress. Just like many things in life, sharing the load can help you thrive.

So, this new year, why not focus on opening up to the people in your life about your finances?

This does not mean telling everyone the ins and outs of your financial plan, or giving private information to others. Instead, it means creating a network of trusted people who all support your goals and can help you along the journey.

This might look like:

• Talking to your children about your succession plans, including the inheritance you plan to leave and any money you may wish to give them before you pass away
• Discussing investments you wish to make, retirement planning, and protection with a professional (more on this in the next resolution).

Opening up to these people could produce the following results:

• You bear less of a financial burden, as you’re rarely making big decisions on your own.
• Your confidence and knowledge might improve.
• Your financial stress levels may decrease.
• Everyone who needs to know how your finances are looking is kept in the loop, which could be extremely important in the event of an emergency.

Although it can be hard to open up about your finances, this new year resolution could reframe your attitude to your wealth in a positive way.

5. Consult a professional before making big financial decisions

Alongside sharing the financial load with those close to you, consulting a Financial Planner in 2024 could be revolutionary for your wealth.

Whether you are approaching retirement, wish to expand your investment portfolio, or simply want someone to perform an “MOT” of your finances this year, a Financial Planner is equipped to provide all this and more.

As far as new year resolutions go, forming a relationship with a Financial Planner is one that is likely to last. Financial planning is a long-term endeavour, so you may remain in this partnership for many years, rather than giving up on your resolution within just a few weeks!

If you have financial new year resolutions that could use a professional eye, we can help – in both 2024 and throughout the years to come.

Email us at enquiries@pen-life.co.uk, or call 01904 661140 to talk to a Financial Planner.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions.