As the world steps into a new year, many individuals are contemplating their New Year’s resolutions, with a significant focus on personal finance management and investment strategies. While the cost of living crisis continues to cast a shadow over households, approximately 80% of people have already tightened their belts in the last six months, with takeaway meals and dining out being the primary areas of cutbacks, according to recent data from HSBC.

Sarah Coles, Head of Finance at Hargreaves Lansdown, emphasised the complex financial landscape facing individuals in the coming year. Speaking to The Times, she stated, “Inflation, tax rates and childcare bills are all set to drop.” However, that’s not the full picture because most tax thresholds have been frozen, and two of them are actually set to fall. She continued: “So there’s a good chance a huge chunk of people will still be worse off by the time we struggle to the end of 2024.”

To provide guidance on navigating these challenges, we reached out to a panel of finance experts for their insights on achieving financial stability and success in 2024.

Finance experts’ top tips for 2024:

Known for simplifying personal finance, The Woke Salaryman highlighted the importance of focusing on one’s earning potential. The top finance blog in Singapore told How To Be Books that, “Saving and investing are important for sure, but the most overlooked area in personal finance is probably one’s earning ability. You see, if you can’t earn enough, then you can’t save enough.” They further advised working on skills valued by the job market and building valuable connections.

Regarding investments, they recommended starting with low-cost index funds. In terms of debt, the writer behind the accessible financial guide, whose forthcoming book “The Woke Salaryman Crash Course on Capitalism & Money: Lessons from the World’s Most Expensive City,” cautioned against borrowing for anything other than essential needs like a home, education, a vehicle (if necessary), or a business plan. The book is due to be published in February this year.

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Steve Adcock, author of “Millionaire Habits: How to Achieve Financial Independence, Retire Early, and Make a Difference by Focusing on Yourself First,” advocated for the “pay yourself first” philosophy. Adcock, who became financially independent by 35, explained, “A better way to manage your money is by paying all your bills first. This includes rent, mortgage, cell phone bill, insurance, etc. Then fund your savings and investment goals.” This approach allows individuals to spend guilt-free while ensuring their essential expenses are covered. He adds: “And here is where the magic happens. After those things are funded, the remainder is your money. Spend guilt free.”

On the other hand, Fiona Smith, founder and CEO of The Millennial Money Woman, showcased the importance of creating a budget or spending plan. The “Zero to Rich: Secrets to Becoming a Millionaire by 30” author advised, “List your monthly income and expenses to see where your money goes.”

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Smith also recommended finding an “accountability partner” to stay disciplined with the budget. She encouraged individuals to prioritise saving, tackle high-interest debts, and continuously educate themselves about financial concepts.

While Tiffani Mauldin, co-author of “Eavesdropping on Millionaires: Investment Strategies and Advice on How to Build and Maintain Wealth,” shared wisdom from millionaires. Her two favourite quotes were, “Do not spend what you do not have, and do not invest what you cannot lose,” and, “It’s not what you make, it what’s you keep.”

The Mauldin Economics partner underscored the importance of not spending beyond one’s means and not investing more than one can afford to lose. Mauldin encouraged individuals to reflect on their personal goals and prioritise enjoyment in their financial plans.

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As the new year unfolds, these finance experts’ insights offer valuable guidance for those seeking to secure their financial well-being and navigate the challenging economic landscape of 2024. With that in mind, here is Simran Kaur, the co-host of the successful finance podcast for women and author of the book “Girls That Invest” on her thoughts.

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