Like many families, our household had its fair share of financial struggles in 2023. Between the increased cost of living, several unplanned expenses, and career setbacks, it felt like we were constantly fighting to keep our heads above water. Every month, we spent hours reviewing our finances and looking for ways to save. Although we were able to stay in the black, my husband and I have agreed that we want 2024 to be different. Therefore, we are adopting 3 New Year’s Resolutions to help us improve our finances and ease some of our financial burdens in the year ahead.
3 New Year’s Resolutions to Improve Your Finances in 2024
1. Get proactive with financial planning.
One of the greatest sources of stress for us was the feeling that we were always trying to catch up. We have been extremely fortunate in the last few years. However, several things changed in 2023. In addition to my reduced hours, we had several expensive medical emergencies and costly home repairs that needed immediate attention. Not only did it drain our emergency funds, but it also prevented us from saving.
When bills came due, we had to put our finances under a microscope. We started by retroactively reducing our spending, canceling orders, and suspending services we didn’t need. But despite these changes, things were always tight. Furthermore, it made it feel as if we were in a perpetual state of sacrifice.
So this year, we are taking a more proactive approach. Instead of cutting back, we are planning ahead. The objectives are to focus on the essentials, rebuild our savings, and become more intentional with our spending. Instead of eliminating expenses, we won’t spend it in the first place. At the end of the month, the budget surplus will go into a dedicated savings account. When we do the quarterly review of our finances, then we will decide what to do with the extra money.
We hope that by changing our starting point, we will be setting ourselves up for success. It’s much easier to work from a position of surplus than debt.
2. Fully embrace the frugal lifestyle.
In response to Resolution #1, we are also fully embracing the frugal lifestyle. Although I have always been budget-conscious, we have gotten too comfortable and complacent. So, we have decided to get back to our budgeting roots and re-adopt behaviors that helped us survive through early adulthood.
While this is one of the more common New Year’s Resolutions, it isn’t easy. For us, this means taking advantage of every opportunity to save money. Here’s how we plan to get ahead of our spending this year:
- Comparison shopping for the best deals.
- Using coupons and timing large purchases during seasonal sales.
- Buying generic brands and second-hand items whenever possible.
- Choosing to cook more at home rather than dining out.
- Finding new hobbies and entertainment options that we can enjoy at home.
Even though these may not seem like major life changes, having the self-discipline to stick to them adds up to hundreds of dollars each month.
3. Postponing expensive purchases until conditions improve.
It can be hard to accept, but income will ebb and flow throughout your adult life. During the leaner years, you have to learn how to distinguish wants from needs. In our household, this means putting off expensive and unnecessary purchases to ensure we have what we need to survive.
Even though I had finally gotten to a point where I no longer felt guilty buying new things for myself, our habits have to change if we don’t want to go into debt. Therefore, we will make short-term adjustments to ensure that we stay on track for our long-term goals.
Admitting these things can be hard. However, we also understand that this situation is temporary and we are both working hard to improve our situation. So until that time comes, we are willing to stick to these New Year’s Resolutions to ease some of our financial stress and make more room for the things that matter.
Has your family made any New Year’s Resolutions for your finances in 2024? We would love to hear from you in the comments below!
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.
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