12 Financial Moves to Make This Year (2024)

This post is from our regular contributor, Erin.

Happy New Year! I’m betting that after doing a year-end review of your finances, you have a few things you want to work on, and a few things you need to re-think.

Most people do. Lots of things can change over a year, and it’s worth taking advantage of the clean slate a new year offers to check in with the progress you’ve made on your larger goals.

It’s also a great time to look over your financial plan for any holes that mayexist.

Even the best of us may forget a small detail here and there.

If you’re looking for financial moves to make this year, this post will give you a good starting point!

1) Get Crystal Clear on Your Goals

Setting goals goes hand in hand with evaluating your financial plan, and we have a list of 100 you can draw inspiration from here.

However, just because you declare you want to do something doesn’t mean you’ll follow through on it. Even worse, if you’ve set goals that aren’t meaningfulto you, you’re at a greater risk of failure.

Getting absolutely clear on what you hope to work toward and accomplish this year will help all the other pieces of the puzzle fall into place (as you’ll see below).

Write your goals down, and ask yourself why they’re important to you. Prioritize them, and figure out what you need to do to see them through.

2) Simplify Your Accounts

As we grow older, our financial situations will likely become more complex. In a way, that’s good, as it (hopefully) means our net worth is going up. Unfortunately, that also means our finances can be more time consuming to manage.

Take a moment to evaluate all of your accounts. Make a list of the ones you can remember offhand, and then go through your bank statement to see if you forgot any. Consider getting rid of the ones you forgot (if you can).

There’s no reason to have five different savings accounts with five different institutions. Having too much to keep track of will lead to a loss of motivation, and it also means things are more likely to fallthrough the cracks.

Optimizethe accounts you have, too. I switched from a brick and mortar bank to an online-only bank and am loving the slightly higher interest rates and convenience!

3) Work on a Debt Payoff Plan

Depending on the type of debt you have, it may be worth focusing all your attention and effort on getting rid of it. You can’t do that without a plan!

Gather information such as your principal balance, interest rate, and minimum payment, and make a list of your debt. It’s time to face the numbers.

You can use the debt snowball or debt avalanche method to pay it off. Either way, ifgetting out of debt is your #1 goal, you should make extra payments when you can.

4) Create a Budget

You probably knew this would be on here, didn’t you? Even though I’m not sold on the fact everyone should keep a super strict budget, if you’re new to managing your finances, you should give it a try.

There are many different ways you can do it. Having your budgetautomated with a system like Personal Capital can help, some prefer the envelope cash system, and other people prefer keeping a detailed spreadsheetin Excel.

There’s no “perfect” solution you should aim for. Just focus on what works for you!Budgeting isn’t about deprivation, it’s about adjusting your financial habits to havethe biggest impact.

5) Ask for a Raise

This one is a no-brainer. At some point this year, it will likely be appropriate for you to approach management about a raise. If you’re a freelancer, the start of the year is a great “excuse” to tell clients you’ve evaluated how you performed last year and are increasingyour rates.

Asking for a raise is one of the simplest ways to increase your income. You don’t want to get left behind when it comes to salary, otherwise you might stay behind.

If you can’t secure a raise (perhaps it’s not in the budget), then consider looking for another job (if you have enough reasons to!) or taking on a side hustle or part-time job.

6) Start Investing

You shouldn’t just be seeking to increase your income. You should also be thinking about long-term growth, which is where investing comes into play.

If your employer offers a match on your 401(k), contribute what you need toget it! Don’t have access to a 401(k)? Then open an IRA. Take a step in the right direction in saving for retirement.

Remember, time is on your side. Every month you delay is another month you don’t benefit from compound interest.

7) Declutter and Sell Your Stuff

Decluttering might not sound like a financial move on its own, but there are many hidden benefits to it. The most obvious is that you can sell whatever you don’tkeep and profit from it. The other? Freeing up more space in your home or apartment.

Maybe you’ve been thinking you need to move to a bigger place. Decluttering can show you that your current space is more than enough. That means you’ve saved on moving costs (and possible storage costs), which is a huge financial win!

8) Donate to Charity

This is one area I’ve been trying to make progressin. You don’t even have to donate a lot; small donations from thousands of people add up. Don’t let that hold you back.

Pick a charitable cause that’s meaningful to you and work out a plan on how much you can donate per year. Don’t forget to save your receipts come tax time!

9) Buy High Quality Items

I’ve written about this before, but the simple fact is you get what you pay for more often than not.

In the past, I couldn’t stand spending so much money on something that was higher quality. The price tag always deterred me.

I tend to go the other way these days. I’d much rather have to go through the buying processonce and save myself the stress!

10) Track Your Spending

This goes along with budgeting, and I’ve also covered this before, but the top financial moveI tellmost people to makeis track their spending. It’s so simple, especially if you use a credit or debit card, and you could be in for a big reality check.

It’s worth knowing where your money is going, otherwise you can’t make the necessary changes to correct your bad habits.

11) Spend on Your Values and Forget the Rest

Besides getting clear on your goals, you should get clear on your values as well. What makes you happy? What have you purchased with no lasting regrets? What never goes to waste if you buy it? Focus on those things and cut out the rest.

That last part is important. You have to be willing to focus your spending on your values, but not spending anywhere else will result in savings.

12) Get on the Same Financial Page as Your Spouse

Are you married, engaged, or sharing finances with your significant other? Then one of the best things you can do for your money this year is to get on the same page as them ASAP.

There’s nothing that will ruin your financial situation or goals quicker than a spouse who isn’t in the loop. Use the new year as a reason to start meeting with each other once a month (or more) to review your budget and progress toward your goals.
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Thinking about the financial moves you can make this year will give you a better idea of what to aim for, and can give you greater awareness of how to make your money work harder for you.

What financial moves are you focusing on this year? What are some moves you think people should make, but are often forgotten?