Here’s how to make 2024 the year of the money bags.
The majority of Americans planned financial resolutions for the new year with the top three being to save more money (41%), pay down debt (38%) and spend less (30%), according to Fidelity’s 2024 Financial Resolutions survey.
This comes as Gen Z and millennials are losing sleep from financial stress, and millions of workers are nearing retirement age with no money in their savings.
But, hey — new year, new financial strategy.
To help Post readers aiming to stack up their savings and better manage their spending, Gary Hemming, the CEO of ABC Finance, shared the top seven resolutions to help you manage your financial resolutions for the year and moving forward.
“Consider saving as a cornerstone of financial stability,” he said in a statement to The Post.
Hemming suggests beginning with whatever seems feasible — even if it’s only $10 a week — noting that even small sums will build up over time.
“It’s not about drastic cutbacks but about creating a buffer for unforeseen circumstances,” the financial expert said.
Sorry, Gen Z — no more doom spending.
A Prosperity Index report by Intuit determined that 73% of Gen Zers would rather live in the moment than scrimp and save for a bleak future, but Hemming advised against spontaneous splurges.
“Before making a purchase, ask yourself if this is something you truly need or just a momentary want,” he said.
“It’s about striking a balance between frugality and indulgence.”
Millions of Americans are financially underwater with U.S. credit card debt surging to more than $1 trillion for the first time in 2023 and nearly 9 million student loan borrowers defaulting on payments despite the three-year pandemic pause.
Although it can be daunting, Hemming recommends sitting down and creating an in-depth, feasible plan to tackle any debts.
“Debt can often feel overwhelming, but breaking it down into manageable chunks can make it less daunting,” Hemming said.
He also suggests exploring all options, like debt consolidation, but advises people in debt to guarantee they fully understand what they agree to — look out for those hidden fees.
“Always read the fine print,” he cautioned.
“Your credit score is more than just a number; it’s a reflection of your financial health,” the expert explained.
Hemming encourages everyone to know their credit score and stay updated on their financial situation.
“Simple actions like timely bill payments can have a positive impact on your credit score,” he noted.
He also recommends regularly updating all your information and checking your reports for errors.
“Updating your personal information, like your address and employment details, is also crucial in maintaining an accurate credit report,” he advised.
These seemingly minor mistakes can impact your credit score, making you miss updates and possibly signally fraud.
A pension is a fund that is regularly paid into during a person’s career from which payments are made periodically to support their retirement.
Hemming insists that everyone be familiar with their pension plan and meet with a financial adviser for personalized advice.
“Whether it’s a workplace pension or a private plan, knowing how it works and how it benefits you in the long run is crucial,” Hemming noted.
“It’s about preparing for your future financial security.”
Although the Gamestop stock craze and cryptocurrency boom made some lucky gamblers millionaires, Hemming advises beginners to avoid risky get-rich-quick investments.
“High-risk investments like cryptocurrencies might seem appealing, but they are best left to the very experienced,” he said.
Instead, Hemming suggests putting your money toward stable investment options with established entities like the S&P 500.
“Investing in the S&P 500 is about participating in the steady growth of well-established companies, which is often a safer and more predictable route than the roller coaster of cryptocurrency markets,” Hemming explained.
“It’s about making smart choices.”