![]() For instance, did you adopt a new pet, have a child, purchase a house, or buy a used car? Those are all potential sources of large expenses you can’t predict, so you might want to pad your emergency savings goal accordingly. ![]() While the whole point of an emergency fund is to cover unexpected costs, you can anticipate potential sources of emergencies and tuck money away from them. Have your income or expenses changed over the last year? If so, adjust your savings goal to reflect your current circumstances. Make sure the target goal you’ve set for your emergency fund target still makes sense for your lifestyle. Regularly evaluating your emergency fund is important for ensuring you’ve saved enough to provide financial security in times of need and sustain you through unforeseen events without going into debt. Check in on your emergency fundĪn emergency fund is a dedicated savings account to cover unexpected expenses or financial emergencies, such as sudden medical bills or job loss. If you don’t have a financial plan, you’ll have everything you need to create one using the insights you develop as you move through your financial checklist. Make adjustments as needed, considering both the coming year and your long-term financial goals. Revisit your existing financial plan, if you have one, to see if it still reflects your current financial situation, lifestyle, and aspirations. This projection will be the foundation for your budgeting and financial plan for 2024. If you’re planning to pick up a side hustle, try to project how much it will bring in, being sure to account for additional taxes you’ll have to pay. Start with your earnings from the previous year and adjust for any known changes, such as salary changes, bonuses, or changes in tax bracket. Anticipated incomeĮstimate your expected income for the coming year. Calculate your net worth by subtracting liabilities from assets to get a snapshot of your overall financial health. ![]() Then, detail your liabilities, such as credit card debt, a mortgage, student loans, and any other debt like auto or personal loans. List all your assets, including cash in bank accounts, investments, retirement savings, and any real estate equity. And if you didn’t use a budget last year, don’t worry: completing this financial planning checklist will set you up to make one for 2024. Did you regularly overspend in certain categories? Were there areas where you consistently spent less than planned? Understanding these patterns will help you adjust your budget for the new year and align it with your actual spending habits and financial goals. Last year’s budgetĮvaluate the effectiveness of last year’s budget. This detailed assessment will provide you with clarity about how much money you actually need to sustain your lifestyle and help you make more informed spending decisions in 2024. Identify any unexpected costs and consider how you could plan for similar situations in the future. How did you spend your money over the last year? Examine your bank statements and credit card bills, group your expenses into categories, and note areas where you spent more than planned. This baseline assessment will help you set realistic and achievable financial goals for the year ahead. ![]() Review the components of your financial planning, including your income, expenses, assets, and liabilities to understand your financial strengths and potential areas for improvement. Think of it as a financial health check-up to get a clear picture of where you stand. Start the new year off on the right foot with a thorough assessment of your current financial status. Read on for a comprehensive financial planning checklist to organize and streamline your approach to a prosperous 2024.Įlements of your financial planning checklist : Whether you want to focus on five, seven, or ten elements of a financial plan for 2024, taking a look at your entire financial picture can give you the knowledge and resources you need to tackle your priorities. There are many components of personal finance, and the specific areas of financial planning that matter to you depend on your unique circumstances. Whether it’s managing daily expenses, preparing for emergencies, or setting your sights on long-term aspirations, creating a well-thought-out financial plan can be both empowering and, believe it or not, enjoyable. Personal financial planning is more than just numbers it’s about gaining control, preparing for the unexpected, and paving a path toward your ideal future. The start of a new year is the perfect time to take a comprehensive look at your finances, reviewing how things shook out over the last 12 months and setting yourself up to meet your financial goals as a new year dawns.
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