Enhance financial well-being at both work and home in 2024!

Dubai: Yes, it is that time of the year, time for us to look back at our spending patterns and take stock of what worked and what did not. A quick google search on how to optimize financial wellness in the new year will lead to heaps of articles around budgeting, building an emergency fund, paying down debt, raising your credit score, increasing your income, and so on, and yes that can be intimidating to look at, let alone try out.

The team at Hedge & Sachs have put together a simple yet comprehensive guide on how to feel financially safe and confident as you step into the new year.

Invest in financial knowledge

First things first, in the ever-evolving world of finance, staying informed is crucial. One resolution that could benefit you in 2024 is investing time in expanding your financial literacy by reading books, attending workshops or taking online courses. After all, understanding the intricacies of investing, taxes and personal finance can empower you to make informed decisions that align with your long-term goals.

Create a budget and stick to it

Budgeting is a fundamental aspect of financial success. Start the year by creating a realistic budget that takes into account your income, expenses and savings goals. Be diligent about tracking your spending and make adjustments as needed. A well-managed budget not only helps you save more but also ensures that you have a clear understanding of where your money is going.

Let Technology be your best bud

Have you ever forgotten to pay for gas, water, or rent? Make your life easier by automating your personal finances with automated bank transfers. This way, your account will automatically take out what you owe for heating, water, your phone bill, or rent.

You’ll never be late on a bill if you set up automatic payments. And if you have a credit card and want to pay off your debt, having automatic payments for your credit card is a great idea to keep that credit report spotless!

Have an Emergency Fund

Experts say you should have at least six months of income for your emergency fund. Emergency savings will be your saving grace if something unexpected happens – your car breaks down, you experience job loss, your pet gets sick, you need to replace your phone, or anything else.

The easiest way to build an emergency fund is to be thrifty with your money and put it into a separate bank account. The most important thing about an emergency account is to withdraw money from it only in the event of an actual emergency.

Emotional awareness around Spending

Not your typical advice, but so important. Stress, anxiety and overwhelm can trigger overspending and splurging cash on unnecessary or pricey expenditures. It’s common for these feelings to trigger irrational or out-of-character behaviours. So if you know that this is a habit you tend to fall into, it can be extremely helpful to learn how to notice and deal with these emotions when they occur. 

Next time you find yourself rushing into an impulsive purchase or browsing shopping sites online, ask yourself: what emotion am I feeling right now? This question can help you to identify the driving emotion behind your behaviour. And once you notice this, you can start to work to overcome these emotions, which can help to reduce spending.

Start Investing

You know we had to mention this, right? Investing means putting your money to work for some time in some sort of project to generate positive returns. Basically, you put your money somewhere for a while, and when you take it back, you get more than you had before!

Before investing your money, you need to think about it. Evaluate your risk tolerance – the level of risk you’re willing to take when investing. If you’re ready to risk it, you may win big, or you may lose big. You never know!

Ask for Help

It’s not shameful to admit that you need help with money – not everyone was taught these things when they were young. Whether you want general advise or specific help navigating retirement accounts or life insurance policies, reaching out to financial experts is a good idea.

This article is contributed by Rachit Pant, Chief Executive Officer & Board Member, Hedge & Sachs extends insightful guidance to those on the journey to financial wellness – “As we step into the new year, it’s imperative to navigate the intricacies of finance. It lays the groundwork for a financially prosperous and balanced 2024.

For those finding the complexities of finance challenging, always consider turning to a financial advisor — a wise investment in ensuring your financial well-being.

Disclaimer: All views and opinions expressed in The Brew Opinion – our opinion section – are those of the authors and do not necessarily reflect the official policy or position of TheBrew.ae, the company, or any of its members.