Money Mindset: Financial Goal Setting for 2024
December is the best time to plan your goals for 2024, so that you’re not scrambling to map your resolutions and start them all at once. When it comes to getting into a Money Mindset amid growing inflation and market scares, I’ve got plenty of creative tips for refining your thinking around money, debt, and how you’re protecting your financial future. Here are a few of them:
Know your “Why”
Create a vision board or other visual tool to help you map your short and long-term financial goals. Under each goal, include the ‘WHY’ behind your ideas. When life throws unexpected obstacles your way, or you take a quick detour from your plan, you’ll always have your ‘WHY’ to fall back on as a north star to guide you going forward. For example:
Long Term Goal: Save $5K in emergency fund
Ideas To Get There: Put away $415 per month. Consider refinancing my car, renting out my backyard, and taking up a retail job on weekends.
WHY: I need the peace of mind that comes with knowing that if my car breaks down or I have a medical emergency, I’ll have some backup funds to support myself.
By charting the ‘WHY’ behind your goals, you’ll remember the emotional, true meaning behind how you’re choosing to live, and you’ll be more likely to remain on course for success.
Review every line item in your statements
This is important for many reasons. Firstly, it’ll help you look out for fraud on your bank statements, which has been on the rise all year. Secondly, and most importantly, reviewing every line item will keep you accountable. Once you actually add up where your money is going, you’ll be less likely to make wasteful purchases. And finally, by reviewing the interest added to your credit card statements, you’ll understand how essential it is to pay down debt. I recommend doing reviews like this on a monthly basis.
Bring in an accountability bestie
This model is highly-recommended in health challenges, because bringing in other eyes can make us more likely to stick to what we say we’re working toward. Consider bringing in an accountability bestie for your finances, too. This can be your romantic partner or roommate, a friend, or a family member. Bonus points if you both share your financial outlook together: mutual accountability can be incredibly helpful!
Review your monthly spending together, and when you’re feeling tempted to veer off course, send a text their way for the added encouragement you need to stick to the plan.
Get comfortable saying no (even to yourself)
In life and in business, saying no is key to protecting your boundaries and being a good steward of your energy and resources. In many financial situations, I see families get into rough patches because they spend without regard for their long-term stability. Get comfortable saying no to your children on wasteful extracurricular spending, saying no to your family members when they’re booking expensive vacations you can’t comfortably afford, and even saying no to yourself.
In the digital age, when we’re inundated with targeted ads and influencer ‘must-haves,’ it’s tempting to spend with a simple tap on the screen and free two-day shipping. But I’d encourage you to be more mindful of these quick transactions and little treats: they add up!
If you need to, channel the voice of your meanest Tía telling you “no” the next time you really want a new handbag or video game. Learn to regulate your own impulse buys for a healthier long-term financial outlook.
Try a spending detox
In the new year, try to do a spending detox for one week of each month, where you don’t indulge in any impulse spending and limit yourself to the most restrictive, basic version of your budget. These detox weeks can help your mindset, showing you how to be grateful for what you have, and even proving how unnecessary many of our daily purchases are.
If you’re someone who lives for the appeal of something bright and shiny, consider joining your local Buy Nothing, Sell Nothing group where people in your local neighborhood give away items they’re no longer using. It can be a great way to engage in your community and still scratch the itch of getting a new item for a thrill.
Buy in bulk
If you’re single and/or childfree, you may not think buying in bulk applies to you – but it does! Review your monthly spending and look for consistent themes: what do you spend on?
Then, consider splitting a membership to a bulk discount store such as Costco, Sam’s Club, or BJ’s with a neighbor or family member. Together, you can plan to spend a higher amount of money on bulk quantities of items you use a lot, such as paper towels, meat or fruits, and so on. You can split the cost and the quantity of items with your shopping partner, freeze what you won’t use for a while, and save tremendously on your usual grocery list.
The items I’ve found are the best discounts at these types of stores are paper products, such as toilet paper and paper towels, cleaning/household products such as laundry detergent, and meat, which is perishable, but easy to split up and freeze for future use.
Think of debt as your enemy
When you’re feeling down about your finances, reframe your mindset to believe that debt is your ultimate enemy. This will engage your desire to pay it down, and remove some of the self-imposed shame you may feel when you’re confronted with poor financial decisions from the past. The key to a Money Mindset is not allowing yourself to sink into a feeling that your spending is uncontrollable and that you’re “just bad with money.” In reality, your debt is your enemy and where you should be throwing your energy: not at the person in the mirror.
Give yourself grace and know that with planning, determination, and encouragement along the way, you’ll be able to achieve financial stability in 2024 and beyond.
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In the journey towards a happy and successful 2024 and beyond, NOW is a prime time to map out your goals as a compass for navigating your Money Mindset in the year to come.
Remember to create intentional goals, regularly review your spending, and embrace the power of self control. Above all, give yourself grace and kindness, and know that spending in general is difficult right now! Inflation is on the rise and consumers are tired. Do the best you can, bring in advisors along the way, and subscribe to my newsletter, The Ambitious Amiga, for more creative tips like the ones listed here. Próspero año!
