Changing Your Money Mindset for 2024

When was the last time you had a look at the goals you set for your financial future? Are you aware of how far you are to achieving them?

With inflation rising to 4% and the UK economy resisting growth over recent years, many have been feeling the effects of this harsh economy, struggling to make ends meet and put money aside to invest in their future finances. So, if you haven’t already done so, now is a great time to review and renew your financial mindset, shifting the attitude you have towards your finances.?

Here are some of the simple things you can incorporate early in the year to help shift the way you think about your finances and help set you up for a better financial position.

Set your financial goals for the year

Having your goals written down in a place that is regularly visible to you is said to increase the chances of achieving them by 42%.

This could be breaking down your long-term goals into smaller achievable targets over the next 12 months, or reminding yourself of what you are working towards for the future. Setting these financial goals will help you to determine and visualise the necessary steps needed to attain them, whether it is saving for your dream house, paying off debts, or retiring early and comfortably. By carving out goals early on, you are giving purpose to you finances which helps you to consciously think about your spending and saving habits, while giving you a focal point to keep you on track. ?

This written version of your end goal will ensure you clearly set out what you are trying to achieve (the WHY), and the plan you need to get there (the HOW) before making any decisions.

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Advantages of writing down personal goals, include: ?

• Solidifying your vision
• Helping you to recall why you’re doing it (your focus)
• Dictating the strategy and tools needed to reach the goal
• Increasing your money consciousness
• Regulating how much needs to be set aside (making the journey measurable)
• Increasing your motivation during your financial journey

Know your current position

A large majority of the population don’t pay enough attention to their credit score and debts and how it can be affected. Maybe you are part of those who have ended up spending months or even years to recover from a decision that took minutes to ruin your credit score rating when you were younger, or maybe you just don’t pay enough attention to the savings you have and the opportunities that are in front of you, either way making yourself aware of your current financial circumstance will help to kickstart your journey. ?

You should assess your savings, debts, credit score, and any existing investments after you have a vision in mind of what you are working towards to help you set realistic goals and budget accordingly. This will not only help define your goals better but give you a good starting point when limiting the liabilities that may set you back along the way…you may even realise you have money in savings that can be invested to help push your finances further.

Budget Wisely

Creating a monthly budget throughout the year is another great way to improve your overall experience when managing finances. With this in mind, now that we are in a cost-of-living crisis and a recession has been announced, having a strict budget is highly essential when keeping on track of the goals you set by mitigating the potential of overspending in the process.

You can track your income and expenses, to identify areas where you can cut costs as much as possible. This can even include reviewing your providers (such as energy, insurance, or phone providers) to determine cheaper alternatives in the market, or simply taking less holidays throughout the year. Once you develop budgeting as a staple part of your everyday life, you will begin to see how much the small changes you make in your spending and investment contributions can accumulate over time to put you in a better position financially.

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Some benefits of budgeting include:

• Having control of your money through tracking your spending and cashflow
• Gaining focus in achieving your financial goals
• Allows you to develop a level of financial stability
• Prevents overspending habits
• Highlighting your spending habits
• Keeps you financially organised

Seek financial support

Lastly, if you are unsure of where to begin, don’t be hesitant to seek guidance from a financial adviser to gain professional insight on how to manage your finances. Having a qualified professional at each step of the way can provide you with the expert knowledge and tools needed to help you reach your vision of financial freedom, while saving you time in the process of it all.

Whatever your goals may be, a financial adviser can assist you in creating a detailed financial plan suited to your needs and ways of life, with advice on adjustments to make when life throws obstacles at you, giving you confidence in your finances.

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If you need support in making your vision a reality, you can reach out for a free initial consultation with a financial adviser at https://www.belvederewm.com/contact.