Five tips for setting your annual financial goals

1  Look back at your spending

Your expenses and spending patterns can change over time, especially when the costs of goods and services increase. Start your budget by reviewing your expenses for the past couple months or year. This will give you a real view of where your money has been going so you can decide if you want to make changes in the new year.

Some questions to ask yourself include:

• What were your spending habits in 2023? 
• If you were following a budget, did you stick to it? 
• Where did you spend more than you thought? 
• Where did you spend less than you expected?

If you overspent in a category, was there a reason? Should you increase your dollars allotted to that category in the new year, or should you work harder to rein in your spending? 

If you need help, check with your financial institution or online for free financial tools and resources you can use to help you create a budget, track your spending, and set savings goals. By taking a closer look at your spending habits, you’ll be able to see where your money is going so you can live within your means—and potentially find more money to put away toward your future.

2  Write down your goals

Do you have future plans that you should be saving for? Perhaps you want to save for a vacation, a car, a house, or your child’s education. Write down your goals, how much you need to save, and when you want to achieve your goal. Then decide how much to save each month and add it to your budget.

Or maybe you’ve been wanting to open a Roth IRA or move your old 401(k) over to your new one.¹ Add these items to your 2024 goals and include a date to get them done. 

Writing out your goals each year can help set you up for success and may give you the needed incentive to create and stick to a budget. You want to think about how your budget aligns with your personal goals and consider making adjustments, if needed, then you can monitor your progress every month to make sure you’re on track to meet your goals.

3  Access your emergency savings to meet your financial goals 

Did you dip into your emergency savings to manage through an unexpected expense? This is why you have emergency savings—to help you through an emergency without having to borrow from credit cards, banks, friends, or family. But remember to replenish your emergency account so you’re prepared for the next time one happens. 

Try to build up an emergency fund to cover at least six months of essential expenses in case of a medical hardship, a job loss, or other unforeseen events. If you don’t have an emergency account, consider making a plan to create one in 2024 and add it to your budget. 

You can set up an automatic fund transfer from your bank account into a separate emergency savings account, so you’re not tempted to spend it. 

4  Review your beneficiaries

The new year is a good time for you to review your beneficiary designations for your financial accounts. 

Keeping your beneficiaries current ensures that your savings go to those loved ones you’ve chosen and helps reduce potential confusion and anxiety, should you pass away. This is especially important if you’ve had a recent major life change, such as marriage, divorce, or the addition or loss of a family member. If you don’t name your beneficiaries, the state laws may do it for you, which can cost your estate or loved ones money, and your money may not be given to who you’d choose. 

And keep in mind that beneficiaries may not carry over to other plans and benefits you may have, so it’s important to review and name beneficiaries for your retirement plan account, pensions, life insurance policies, and any other policies or accounts you may have.

5  Check in on your retirement planning 

Contributing to your workplace retirement plan, such as a 401(k), is one of the easiest ways to prepare for your financial future. Can you increase your 401(k) contributions? The 2024 IRS limits are a good excuse to contribute more to your retirement plan. The regular limit for pretax and Roth (after-tax) retirement plan contributions is $23,000 for this year. If you’re over age 50, you can also make a catch-up contribution of $7,500 for a total of $30,500.

Some retirement plans offer an employer matching contribution, so if you’re not contributing to get the maximum match with your employer, see if there’s room in your budget to get you there. Don’t forget about maximizing your IRA contributions, too—you have until April 15, 2024, to contribute for 2023! 

Commit to financial resolutions―every year

The start of every year is a great time to consider making a promise to yourself to review your financial and wellness goals―and make adjustments as your situation or needs change. Taking these actions annually can set you up for success and help you save for your future. And reviewing and keeping a current plan for your financial well-being can help you focus on your priorities, minimize your stress, and keep your finances on track.

1 There are advantages and disadvantages to all rollover options. You are encouraged to review your options to determine if staying in a retirement plan, rolling over to an IRA, or another option is best for you.