7 New Year’s Financial Resolutions
New Year’s Financial Resolutions for Building and Preserving Wealth
As we kick off 2024, many individuals are setting the stage for a year of personal growth through New Year’s resolutions. These resolutions often revolve around cultivating healthy habits for one’s physical, mental and financial health.
The landscape of financial resolutions varies across generations, with older Americans prioritizing retirement savings and pursuing bucket list items, while their younger counterparts focus on spending and budgeting, big purchases and expanding investments. While each new year brings unique opportunities and challenges, according to a recent survey from Fidelity, “Inflation remains the top reason Americans were not able to stick to their 2023 financial resolutions with 40% claiming they had less money to work with due to inflation’s impact on day-to-day expenses.”1
Thinking about setting and maintaining financial resolutions this year can be daunting. How can you establish financial habits that are not only sustainable but also instill confidence as you navigate the transition into the New Year?
To help you prepare for the road ahead, here are 7 financial habits aimed at empowering you to establish and sustain your financial resolutions in 2024.
Habit #1: Focus on Your “Financial” Big Picture
A well thought out comprehensive financial plan can help you focus on your goals and make fully informed decisions that help you achieve your desired outcome. Don’t make financial decisions based out of fear or what you can’t control. It’s important that you use your financial plan as a roadmap and continue to focus on decisions that increase the likelihood of a positive outcome.
Habit #2: Shape Your Legacy
Reviewing and updating your estate plan is essential, but so is shaping your legacy. We believe that transferring values is just as important as valuables. It’s about leaving a legacy that maximizes impact and resonates with your core values and beliefs. As you step into the New Year, consider how your financial resolutions contribute to the legacy you want to leave.
Habit #3: Review and Rebalance Your Investment Portfolio
If you haven’t reviewed your investment mix and performance for the upcoming year, the new year is a time to reassess your evolving goals and risk tolerance. This is essential for a successful alignment of your portfolio with your updated financial goals. This proactive approach ensures that your well-diversified portfolio is in harmony with changing needs and goals, allowing disciplined investors to confidently navigate the ever-changing financial environment and economic climate through strategic planning rather than reactive decision-making.
Habit #4: Identify Potential Strategies to Help Lower Your Tax Burden
Tax planning strategies are an integral part of your overall financial plan. The sooner you start identifying tax planning opportunities, the more time and flexibility you’ll have to implement strategic tax saving opportunities that lessen your tax burden. Our highly credentialed in-house tax team has decades of combined experience, allowing us to work nimbly on complex tax planning issues that fit your unique needs and that evolve with you as your wealth grows.
Habit #5: Save More for Retirement
If you have the opportunity, save more for retirement through tax-advantaged accounts. For example, this includes funding Individual Retirement Accounts (IRAs), 401(k), 403(b), and Health Savings Accounts (HSA). In some cases, funding a Roth IRA makes sense. In any case, please consult with your FCA Corp Financial Advisor or tax professional who may be able to provide you with information about the pending changes on the new limits for certain retirement accounts for 2024 and help you coordinate and implement a retirement savings strategy.
Habit #6: Foster Relationships
Additionally, the saying “your network is your net worth” rings true because strong relationships play a significant role to your financial health – such as better business prospects and career developments. As you embark on the New Year, consider investing time and energy into nurturing your professional and personal networks.
Habit #7: Partner with FCA Corp this New Year
Finally, as you embrace the opportunities of the New Year and embark on your journey towards financial well-being, consider partnering with FCA Corp to make this year truly transformative. Furthermore, we understand that building and preserving wealth is not just about financial strategies; it’s about holistic well-being. At FCA Corp, we view your wealth journey as a comprehensive pursuit that encompasses your finances, health, family and core values. This New Year, let us help you achieve your resolutions. Contact an FCA Corp Advisor today to get started.