5 Top financial resolutions you can’t afford to skip in 2024

Start the year with a bang by establishing your financial resolutions for 2024 right now. Take a look below to discover the top 5 financial resolutions that you absolutely cannot afford - pun intended - to overlook in 2024.

1. Set short-term and long-term financial goals.

   One financial goal you simply cannot neglect in the year 2024 is the importance of setting clear and achievable goals for yourself. It is crucial to have a vision for your financial future, both in the short-term and the long-term. By setting goals, you are taking an active role in shaping your financial well-being and ensuring a secure future.

   Setting financial goals provides you with a roadmap to follow, guiding your financial decisions and actions. It allows you to prioritize your spending, saving, and investing, ensuring that you are making the most of your hard-earned money. Without goals, you may find yourself aimlessly drifting through the year, without a clear direction or purpose for your finances.

   "Without goals, you may find yourself aimlessly drifting through the year, without a clear direction or purpose for your finances."

   What should you consider when setting financial goals?
   

   When setting financial goals, it is essential to be specific and realistic. Consider what you want to achieve in the short-term, such as paying off a certain amount of debt or saving for a particular expense. Additionally, think about your long-term aspirations, such as building a retirement fund or purchasing a home. By setting both short-term and long-term goals, you can strike a balance between immediate needs and future financial security.

   So, as you step into the new year, don't underestimate the power of setting goals – it's a financial move you simply can't afford to skip.

2. Create a budget and stick to it!

   In order to set effective goals and pave the way for financial success, it is imperative to thoroughly evaluate your current financial situation. This involves taking a comprehensive look at your income, expenses, and debts. By doing so, you will gain a clear understanding of your financial standing and be better equipped to make informed decisions.

   Start by examining your income sources, including your salary, investments, and any additional sources of income. Calculate the total amount you receive each month and identify any potential fluctuations. This will enable you to create a realistic budget that aligns with your income.

   Next, closely analyze your expenses. Consider both fixed expenses, such as rent or bond payments, utilities, and insurance, as well as variable expenses like groceries, dining out, and entertainment. Take note of any unnecessary or excessive spending habits that can be trimmed down to free up additional funds for savings or debt repayment.

   

   Once you have a clear understanding of your financial situation, it's time to create a budget that reflects your goals and priorities. Start by allocating a portion of your income towards essential expenses, such as housing, utilities, and transportation. Then, allocate funds for debt repayment, savings, and investments. Be sure to set aside some money for discretionary spending as well, to maintain a healthy balance between financial responsibility and enjoying life.

   Sticking to your budget is key to gaining control over your finances. It requires discipline and commitment, but the rewards are worth it. Regularly track your expenses against the budget, making adjustments as necessary. Use tools like budgeting apps or spreadsheets to monitor your progress and stay on track.

   Download your FREE, customisable budget template here.

3. Pay off or reduce your debt. 

   Debt assessment is a critical step in evaluating your financial situation and when preparing your budget. It allows you to gain a comprehensive understanding of your outstanding debts, which includes credit card balances, loans, and any other financial obligations you may have. By making a thorough list, you can have a clear picture of the amount you owe, the interest rates, minimum monthly payments, and outstanding balances for each debt.

   Once you have this information, you can prioritize your debts based on their urgency and financial impact. You may choose to pay off high-interest debts first, as they can accumulate quickly and become a significant burden. Alternatively, you may opt to focus on debts with smaller balances to eliminate them quickly and gain a sense of accomplishment. The key is to develop a strategy for repayment that aligns with your financial goals and capabilities.

   Creating a debt repayment plan can help you stay organized and motivated. You can start by setting a realistic timeline for paying off each debt, taking into consideration your income and other financial obligations. It may be helpful to break down your larger debts into smaller, manageable chunks, making it easier to tackle them one by one. 

   As you work towards paying off your debts, it is essential to reevaluate your spending habits and make necessary adjustments. This may involve cutting back on discretionary expenses, finding ways to increase your income, or seeking professional advice on debt management. By being proactive and committed to reducing your debt, you are taking a significant step towards achieving financial freedom and creating a solid foundation for your future financial well-being.

   If you find yourself overwhelmed by the burden of paying off your debts and unsure about how to manage, it may be wise to seriously consider seeking debt counselling or debt review services from Meerkat. Debt counselling is an effective solution that can reduce your monthly debt repayments by up to 50% and lower the interest rates on your loans, potentially saving you a significant amount of money on your overall debt. Don't hesitate to explore this option and take control of your financial future.
   
   "Debt counselling is an effective solution that can reduce your monthly debt repayments by up to 50%."
   
   
   Read: Debt Counselling | Everything you need to know
   
   

4. Save towards an emergency fund. 

   Saving towards an emergency fund is an essential financial goal to have in 2024. By not saving towards an emergency fund, you leave yourself vulnerable to debt you cannot afford. An emergency fund serves as a financial safety net, providing you with peace of mind and protection against unexpected expenses or financial setbacks.

   Life is full of uncertainties, and no one can predict when an emergency will arise. Whether it's an unexpected medical expense, car repair, or home maintenance issue, having an emergency fund allows you to handle these situations without relying on credit cards or loans. This not only helps you avoid accumulating unnecessary debt but also prevents you from falling into a cycle of financial stress and anxiety.

   When setting a goal for your emergency fund, it is important to consider your individual circumstances and financial responsibilities. Aim to save at least three to six months' worth of living expenses, depending on your income stability and family situation. This amount will provide you with a buffer to cover essential expenses, such as rent or mortgage payments, utilities, groceries, and any other necessary costs, in case of a job loss or unforeseen circumstances.

    

    

   "Aim to save at least three to six months' worth of living expenses."
   
   

   
   To start saving for your emergency fund, create a separate savings account specifically designated for this purpose. This will help you distinguish it from your regular savings and make it less tempting to dip into for non-emergency expenses. 

   Prioritising the establishment of an emergency fund in 2024 is a crucial step towards securing your financial well-being. By saving for unexpected expenses, you can protect yourself from falling into debt and maintain control over your financial future. Start today and make saving for an emergency fund one of your top financial goals in the coming year.

   Start saving with Meerkat's Savings Solution for as little as R25 per month and enjoy hassle-free access to your funds whenever you need them! No red tape, just easy and convenient savings at your fingertips-perfect for an emergency fund!
   
   Learn more about Meerkat's Savings Solution here. 

5. Consolidate your existing funeral cover or take out a funeral policy for yourself and family members. 

   As we enter the year 2024, it is crucial to be mindful of the increasing financial challenges that may come our way. The previous year saw interest rate hikes, rising food prices, and an overall increase in the cost of living. In light of these circumstances, it is more important than ever to carefully evaluate our expenses and make necessary adjustments to ensure financial stability.

   One area where we often overlook unnecessary expenses is funeral cover. Many individuals have multiple funeral plans from various companies, which can result in unnecessary costs. However, it is important to remember that you only need one comprehensive funeral policy that provides adequate coverage for yourself and your family.

   At Meerkat, we understand the importance of protecting your loved ones during times of loss and providing them with the financial support they need. Our funeral policies are designed to offer comprehensive coverage at affordable rates, ensuring that you and your family are protected without breaking the bank.

   By consolidating your existing funeral cover or taking out a funeral policy with Meerkat, you can potentially save money and simplify your financial commitments. Our policies are tailored to meet your specific needs, providing you with peace of mind knowing that your loved ones will be taken care of in the event of your passing.

   In addition to the financial benefits, consolidating your funeral cover with Meerkat also offers convenience and ease. With just one policy to manage, you can streamline your financial responsibilities and focus on other important aspects of your life.

   "With just one policy to manage, you can streamline your financial responsibilities and focus on other important aspects of your life."

    

   As you reassess your financial situation and prioritize your goals for the year ahead, consider the potential savings and benefits of consolidating your funeral cover with Meerkat. By making this smart financial decision, you can ensure that you are protecting your family's future while also saving money in the process.

   Remember, every Rand saved can make a significant difference in your overall financial well-being. Take control of your expenses, review your funeral cover options, and make the necessary changes to secure a brighter and more financially stable future for yourself and your loved ones. Trust Meerkat to provide you with the reliable and affordable funeral cover you deserve.
   
   Get your FREE, non-committal quote online from Meerkat now. 

Who is Meerkat?

Meerkat is a financial wellness company that wants to help South African consumers do MORE with their money. We can help with debt repayment negotiations, provide affordable insurance and help you kickstart an emergency fund

Fill in the contact form on our website to receive a free callback from the Meerkat team today.