How To Reach Your Financial Goals by the End of 2024, According to Money Expert Michela Allocca

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Coming up with a New Year’s resolution to get your finances in order isn’t a bad idea, but it would be wasting valuable time to wait that long. While 2024 is coming to a close, it doesn’t mean it’s OK to let your finances spiral out of control this holiday season.

Michela Allocca, digital creator and owner of the @breakyourbudget Instagram page, shared a post explaining exactly what you must do to salvage your finances before the end of the year.

Here are her four steps to creating a monthly money reset to reach your financial goals.

Step One: Get a Finance Tool

To understand and improve your finances by the end of the year, you need a clear picture of what’s happening. The best way to know exactly where your money is going and how to improve it is to get a finance tool. A Debt.com survey reported that 89% of participants in 2024 attribute a budget to helping them stay out of debt.

Today, it’s easier than ever to get accounting software or a budgeting app that can assist you in seeing exactly what’s going on. Budgeting apps such as YNAB, EveryDollar and PocketGuard appear right on your smartphone for easy access. These different financial tools come in paid and free versions.

Step Two: Update Your Info

You’ll need to update your information after setting up your financial tool of choice. Taking the time to accurately enter amounts for each category will produce better results. Many applications link directly to your financial accounts, such as checking, savings and credit cards. 

Information you may need to enter includes:

• Income: How much you make each month
• Expenses: What you’re spending your money on
• Savings: How much money you’re putting away
• Investments: Purchased assets or items that can increase in value over time
• Debt: How much money you owe
• Net worth: Your total value determined by your debts subtracted from your assets

Step Three: Reflect

As you update your finance tool, you’ll begin to see trends in how you’re spending money. Tracking your expenses will allow you to see where you can cut back and where you can put extra money. For example, you may find that you can cut your fast food budget by $150 each month and instead put that amount toward your debt. Here are some questions that you can ask yourself to jump-start your reflection process:

• What are my financial goals, and am I meeting them?
• Where can I cut back on my spending?
• How much of my spending is impulsive?
• Am I proud of how I’m handling my finances?
• What can I do now to ease my financial burden next month?
• How can I spend more on my debts, savings and investments?

Step Four: Adjust Your Plan

After seriously contemplating the data you’ve gathered, you can find ways to make major or minor changes to your spending. However, keep in mind that every month is different. As 2024 comes to a close, holidays like Thanksgiving and Christmas are on the horizon. The National Retail Federation projects that holiday spending in November and December will rise 2.5% to 3.5% higher than 2023, totaling between $979.5 billion and $955.6 billion.

Preparing for extra spending ahead of time will make a big difference. You may need to spend less than you normally would in some non-essential areas to have more money for holiday travel and gifts. Reassess your financial strategy at the end of each month and budget accordingly to get your spending on track before New Year’s Day even starts.

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