– Building up an emergency fund and a “sinking fund” should be a priority for improving finances in 2024.
– Paying off debt and finding additional income streams are also essential steps to take.
In a new article, financial expert Jennifer Streaks shares her top four tips for improving finances in 2024:
- Increase your emergency fund: An emergency fund is crucial for protecting yourself in case of unexpected financial emergencies, such as job loss or illness. It also helps prevent the accumulation of high-interest credit card debt. Building up an emergency fund can provide a safety net and peace of mind.
- Use a sinking fund: A sinking fund is a separate account specifically designated for planned purchases, such as a major trip or a car repair. By setting money aside specifically for these expenses, you can avoid dipping into your emergency fund and maintain financial stability. Planning ahead also helps prevent impulsive spending.
- Attack your debt: Streaks emphasizes the importance of paying off debt to reach your financial goals. By eliminating unnecessary debt, you can free up money that can be redirected towards savings. Streaks highlights the potential benefits of clearing high-interest debt, such as credit card debt and personal loans, which can immediately improve personal finances and increase overall savings.
- Build another income stream: Streaks suggests exploring additional income streams through starting a side business or pursuing a side hustle. For individuals looking to pay off debt, save more money, or simply have extra funds, generating additional income can help achieve these goals. Streaks argues that solely focusing on cutting expenses may not always be the most effective financial strategy.
Streaks’ advice is based on her personal experience and expertise in personal finance reporting. By following these four key tips, individuals can work towards improving their financial health and achieving their goals in 2024.