There are a lot of people who try to make financial resolutions for themselves but fail to achieve them. There are times in life when things don't go as planned, or you simply forget. One way to ensure success with your resolutions is to make them more specific and turn them into an action plan. You can check off these six financial resolutions this year. While these six steps may seem intimidating at first, as long as you take them one at a time, you will be able to feel better about your finances than you have ever felt in the past.

6 Resolutions to Follow in 2024 to Get Your Finances on Track

As you incorporate these resolutions into your financial plan, you set the stage for a more prosperous and secure new year. It is important to remember that over time, consistent small steps can result in significant financial gains.

Start Saving a Small Amount

It would be impossible for you to wake up one morning and be capable of running a marathon. The first step would be to walk or jog for a few minutes. Eventually, you would start by running a mile, then two miles, and gradually youll be able to run 26 miles, the actual marathon distance.

The same applies to financial resolutions. Do not make a resolution to save $1 million for retirement. It is far too easy to become discouraged and give up. You should begin by contributing 1% of your paycheck to your employer's 401(k).

Let us suppose that you earn $60,000 per year. That would be $50 per month. The $50 that is deducted from your paycheck each month will barely be noticed by you.

After a couple of months, increase that to 2%, or an additional $25 per paycheck, and then to 3%. Each time you receive a raise or bonus, you should increase it again. Once you begin saving 10% (or more) of your salary for your retirement, you will not notice the additional 1% deduction. Within a short period, you will be surprised at the amount you will have accumulated.

Organize Your Finances

Organizing your finances has many benefits: it can create peace of mind, save you time, lead to better decisions, and allow you to adapt more effectively to life's changes.

The act is actually quite simple. With three easy steps, you can not only gain a detailed understanding of your finances, insurance, taxes, and other aspects of your financial life but also confidently plan for the future.

The steps are as follows:

• Take note of the advice in the article
• Consider future milestones
• Concentrate on a single task at a time

When you follow these tips, you will feel more in control of your finances than ever before.

Try Intentional Spending

Having your finances aligned with your most important priorities is the key to financial happiness. However, that does not mean you should ignore the fun. By saying yes to your priorities, you will be able to achieve your goals. Peace of mind is a must. Embrace the future you desire. This requires you to take time to consider your spending and to understand where your money is being spent.

The first step is to keep track of your expenditures, whether you do so with pencil and paper or with a financial application. If you track your income and expenses for a few months, you may be surprised at where all of your money is going. By doing so, you will be able to evaluate whether your spending is going toward what you consider important. You can use those insights to improve your financial situation.

Have a Conversation With Your Partner

What's the connection between love and ... finances? Managing money in a relationship can be difficult, not to mention not always romantic, but it's important for a healthy and long-lasting relationship.

Understanding the psychology of money is the first step. As children, we all learn about money from our parents, even if we are not aware of it.

You and your partner must have a clear understanding of what money means to you. It is easier than you might think. Sit down and have a long conversation with your partner about where to spend the money and your main priorities. Although your needs may be different from your partner's, you still need to communicate your needs. This can help you make financial decisions that will benefit both in the current year.

Consider a CD (Cash Deposit) With a Fixed Interest Rate

CDs are types of savings deposit accounts. An account with a guaranteed interest rate typically offers a higher annual percentage yield than a traditional savings account. If you have some savings you do not need to access for extended periods, this is an excellent investment option. The funds are locked away for a specified period, making it an excellent investment option.

In contrast to savings accounts, your interest rate is fixed, so it will not fluctuate dramatically over time. It may be worthwhile to lock your interest rate with a CD in the coming months since interest rates are expected to decrease.

Don't Spend Your Tax Refund on Unnecessary Items

Now that tax season is just around the corner, it's time to make a plan for how you'll spend your refund. Even though you may be tempted to spend your refund on splurges, it may be more useful to use it to pay off high-interest credit cards, to make an additional loan payment, or to pay off any other debts that have remained after the holidays.

According to the IRS, the average tax refund for 2022 was $2,899 per taxpayer. As a result, you should make a plan for how you will spend any estimated refund you will receive if you are entitled to one.

Whenever possible, you should pay off debt sooner rather than later to avoid interest charges. Mortgages, credit cards, and auto loans can all be included in this category. The sooner they are paid, the more money you can save.

Conclusion

A financial resolution, if made and kept, can affect every aspect of your daily life, allowing for new choices and a sense of control over your finances. It is, therefore, essential that you begin small, become organised, and enjoy the personal financial life that you deserve.