These Are Women’s Top 3 Financial Goals for 2024
Written by
Gabrielle Olya
Edited by
Amen Oyiboke
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It’s officially that time of year when we start thinking about our goals for the year ahead. A new GOBankingRates survey found that women’s top three financial goals for 2024 are getting out of debt (27%), saving more money (24%) and making more money (18%).
These goals are achievable with the proper plan in place — but it’s important to actually make a plan and stick to it. In this “Financially Savvy Female” column, we’re chatting with Kerry Keihn, a financial advisor and partner at Earth Equity Advisors, about how women can get out of debt, save more and make more next year.
How To Get Out of Debt
“Getting out of debt is a great goal, but it can also feel insurmountable at times,” Keihn said. “To tackle this goal, I like to start with two pieces of information: a picture of monthly income and expenses, and a picture of the debt.”
To get a clear picture of the money coming in and out, and how much you can dedicate towards paying down debt, you’ll need to create a budget.
“You can build your own budget or you can use an app to help you,” Keihn said. “If your budget shows you cannot pay down your debt even after making adjustments to increase your income or decrease expenses, it may be time to talk to a bankruptcy counselor. If your budget shows you do have money left over each month after you make the minimum payments on your debts, it’s time to decide what to pay off first with your extra cash.”
When considering which debts to pay off first, consider the minimum payment, the outstanding balance, the term and the interest rate, as well as any penalties.
“There are two main schools of thought when it comes to what debt to pay off first, and it really comes down to what resonates most with you,” Keihn said. “One argument is to pay down debt in order of interest rate since you can save on interest over the long run. The downside is that you may become frustrated if that debt also has the highest balance, so it takes a very long time to chip away at it and you could give up on the goal.
“The second argument is to pay off the smallest balance first regardless of interest owed,” she continued. “You may pay more in interest, but the momentum of paying off balances may motivate you to stick with this goal. You know your frustrations and motivations better than anyone else, so go with the option you know will motivate you to pursue your goal.”
You might also consider consolidating your debts.
“Weigh out the benefits of consolidating any of your debts,” Keihn said. “Once you have decided whether to consolidate any debts, make sure you are making the minimum payments.”
How To Save More Money
“I’m a big believer in making steps to achieve our goals as easy as possible,” Keihn said. “For me, the biggest way to keep things simple is to automate steps wherever possible.”
Once you’ve developed a budget to figure out how much you have left over each month, you can set up automatic transfers from your checking account to savings or investment accounts. If you are building an emergency fund or saving for a short-term goal, set transfers to a savings account. Keihn recommends utilizing a high-yield savings account.
“Although many banks and credit unions have increased their interest rates, some are still paying very low rates and you could be missing out on earning cash just based on the bank you use,” she said.
“If you already have saved up for an emergency fund and your short-term goals, and you have paid off high-interest debt, it may be time to consider investing your extra cash,” Keihn said. “You could be eligible to contribute to a retirement plan through work, and those contributions can be automatically deducted from your paycheck. If you aren’t eligible for a work retirement plan, or if you still have extra funds, you can open a personal investment account and schedule automatic transfers to that account.”
How To Make More Money
“Negotiating a higher salary can be stressful, but it is important to do,” Keihn said. “Information gathering is an essential first step and thankfully, there is a lot of salary-related information available online.”
When you’re researching salaries and job descriptions, make notes on what a competitive salary is based on the job description, the region, the level of expertise required and the size of the company.
“Even if you don’t want to leave your current company, it is important to get this data so you can present these facts if your current salary is not competitive,” Keihn said.
In addition to negotiating for higher pay, another way to increase your earning potential is to gain new skills.
“Look at more advanced job descriptions to see what new skills or certifications they require,” Keihn said. “You can go to your employer with a plan for salary increases as you gain new credentials.”
You might also consider switching jobs or companies to boost your pay, but Keihn said it’s important to pay attention to aspects that go beyond the paycheck if you make this move.
“It’s a good idea to consider the new company’s culture, mission and benefits in addition to your new paycheck,” she said. “If it’s only a small increase in pay, but the benefits are worse or the mission and culture don’t align with your values, it may not be worth the slightly higher paycheck. Make a list of pros and cons so that you can decide if the new salary is worth it.”
More From GOBankingRates
Survey methodology: GOBankingRates surveyed 1,039 Americans ages 18 and older from across the country between Nov. 9 and Nov. 13, 2023, asking 10 different questions: (1) How would you rate your financial well-being/situation at the end of 2023?; (2) How much do you want to realistically save in the next year?; (3) What types of investments are you considering for 2024? (Select all that apply.); (4) Will you be in debt in 2024?; (5) Will you have an emergency fund going into 2024 and how many months will/would it cover?; (6) Which best describes your top financial goal for 2024?; (7) Are you planning for any of these major milestones in 2024? (Select all that apply.); (8) What is your top financial stressor heading into the new year?; (9) Are you planning for any major job changes in 2024?; and (10) What would you like to have happen the most in 2024? GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
