10 money moves to make 2024 your best yet
Endowus Insights

Leap into prosperity this CNY 💰     Get an $88 head start to growing your wealth.

Leap into prosperity this CNY 💰Get a $88 head start to growing your wealth.

10 money moves to make 2024 your best yet

Updated
18
Jan 2024
published
18
Jan 2024
10 money moves to make 2024 your best yet

As we step into a brand new year, it's the perfect time to reassess your financial goals and set yourself up for success. 

To make 2024 your best year yet, consider adopting these 10 actionable new year resolutions that will not only boost your financial well-being but also pave the way for long-term financial success. 

1. Map your money flows

First off, you need to understand where your money is coming from and where it’s going. This is fundamental to financial success. 

Without understanding your money flows, you are setting yourself up for disaster – akin to travelling to a new destination without a map in your hand (yes, that can be fun but it can also get daunting). 

Start by tracking your income and expenses for at least a month. You can use apps, spreadsheets, or even good old-fashioned pen and paper – whatever works for you and is simple enough to get you into the groove of doing this regularly. 

This financial map will reveal all the sources of money flow, and allow you to stem any unnecessary leaks if there are any. And this brings us to the next two points. 

2. Everyday I’m hustlin’

From freelancing of services to online dropshipping, side hustles can significantly contribute to your financial well-being by boosting your income. 

Diversifying your income streams not only provides financial security but also opens doors to new possibilities. 

Perhaps you are passionate about baking. Why not start a home-based baking business that you can promote through social media? In the age of generative artificial intelligence (AI), you can leverage tools to even help you create social media posts without cracking your head (too much). 

To understand in which area you can start a side hustle, think about the times when someone has asked you for help regarding a particular topic. You are seen as an expert in that area so you can consider starting something there. But of course, don’t bite off more than you can chew. Side hustles can grow into something larger if you’re not careful, so make sure your priorities are in place to allow this new stream of income to enter. 

3. Stop that money leak

The first viral money trend to hit TikTok this year is “loud budgeting”. It’s a concept where you make a conscious decision to reject peer pressure and societal expectations in favour of your financial well-being. As creator Lukas Battle put it in his trending video, “It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend.”

Along the same vein, you should also take a critical look at your monthly expenses and identify areas where you can meaningfully make a difference. 

For instance, if you can move to a more affordable SIM-only mobile plan compared to a monthly contract plan while keeping all the essentials you need, you should certainly do so. Not watching Netflix that much post-pandemic? Be resolute and cut it out. 

You can then redirect the funds saved towards saving up for your short-term goals like overseas travel or longer-term ones like retirement. 

4. Boost your CPF retirement pot

The Central Provident Fund (CPF) is a key pillar of Singapore’s social security system, helping Singapore citizens and permanent residents set aside funds to build a strong foundation for retirement.

As you work and make CPF contributions, you accumulate savings in three accounts: Ordinary Account (OA), MediSave Account (MA), and Special Account (SA). When you hit 55, a Retirement Account (RA) is created for you.

Source: CPF

If you have extra cash on hand, you can consider making cash top-ups to your CPF OA, SA, and MA to boost your savings by capitalising on the power of compound interest. Currently, the OA has an interest rate of 2.5% p.a., while the SA, MA and RA each provide an interest of 4.08% p.a. 

If you are below 55 years old, you will earn an extra 1% interest on the first $60,000 of your combined balances (capped at $20,000 for OA). 

CPF members who are 55 years old and above will also get an extra 2% p.a. interest on the first $30,000 of their combined balances (capped at $20,000 for OA), and an extra 1% p.a. on the next $30,000. 

If you are looking to top up, it‘s wise to do so as early in the year as possible instead of in December as your CPF interest is calculated every month, and hence the compounding of interest begins as early as you commit your money. If you top up in January each year instead of in December, you can earn up to 20% more interest on your top-ups in 10 years, based on the previous interest rate of 4% p.a..

While at it, you can also claim tax relief of up to $8,000 per calendar year for cash top-ups. Win-win! 

5. Beware of financial shackles

While buying stuff we like on credit sounds enticing, we also need to be mindful of the high interests that come with it. One high-interest debt is from credit cards. 

An example from DBS shows that if you have not made the full payment by the payment due date, you will be billed an interest charge of 27.8% p.a. and if you haven’t made the minimum payment, there’s an increased interest rate of 30.8% p.a. 

The longer you don’t pay interest, the higher the credit card debt snowballs due to compound interest (remember, compounding works both ways!). 

There are a couple of methods to employ to clear debt and one way is the debt avalanche method. 

This method involves listing all your debts in order of interest rate, from highest to lowest. 

Repay as much money as you can for the debt with the highest interest rate. Once this debt is paid off, move on to the next highest interest rate debt, and so on until all debts are cleared.  

Speaking of credit, it’s worth mentioning here about buy now, pay later (BNPL), a service that allows you to break down your large payments into smaller monthly instalments. You should only use BNPL if you’re confident of paying off the monthly payments with discipline. Otherwise, there’s a risk of late payment fees. 

Overall, clearing debts can be tough, so it’s better not to go into unnecessary debt in the first place by spending within your means. 

6. Protect your financial downside

Insurance coverage is important to safeguard against unexpected life-altering events such as hospitalisation and critical illness.

Without sufficient insurance protection, you could be forced to liquidate your investments to pay off hospital bills if any, delaying your financial goals.

Do review and update your insurance coverage with a trusted financial adviser (or you can go the do-it-yourself route too) to ensure it aligns with your current needs, especially during a major life milestone. 

7. Navigating life’s curveballs

We can never predict what happens in life. As such, building a robust rainy day fund helps to weather unexpected financial storms. 

Commonly termed an emergency fund, it provides peace of mind and financial flexibility, allowing you to navigate unforeseen circumstances such as a job loss without derailing your long-term financial goals.

Aim to save at least three to six months' worth of living expenses. 

Those who don’t have a steady income such as freelancers may want to set aside a larger amount than full-time employees. 

So it’s entirely up to you and your comfort level on how “big” you want this kitty to be. 

Having said that, we should avoid stashing too much cash away into our emergency fund as the “extra” money can be put to better use to garner higher returns through investments

8. Improve your financial literacy

Commit to continuous learning each day by investing in your financial literacy. 

A solid understanding of money concepts empowers you to make informed financial decisions, enhancing your ability to navigate the complex world of money and investments. 

You can enhance your personal finance knowledge through books, events, and online resources. 

Here at Endowus, we have a site dedicated to helping you level up your financial knowledge. 

The Endowus Fin.Lit Academy provides you with a step-by-step guide to kickstarting your personal finance journey, with topics ranging from the basics of investing to retirement

Setting aside just 15 minutes per day to focus on financial literacy will go a long way. Remember, knowledge compounds as well!  

9. Master your mind

"Too many people spend money they haven't earned to buy things they don't want to impress people they don't like." – Will Rogers

Cultivate a healthy mindset by focusing on your unique financial journey and not just to keep up with the Joneses, especially at a time when it’s easy to compare yourself with others through social media. 

Embrace gratitude for what you have, celebrating your accomplishments and progress, no matter how small. 

A positive mindset is a powerful tool that will go a long way in achieving financial success and contentment. 

10. Start as early as possible; for the long term

Everyone should invest to at least beat inflation. And, invest wisely while at it. 

When it comes to building lasting wealth, the key is to invest in a diversified portfolio with the long term in mind. 

Attempting to predict short-term market fluctuations is a futile endeavour. Instead, successful investors recognise the power of staying invested through market ups and downs. By doing so, they give their investments the time to recover from inevitable downturns and benefit from the overall upward trajectory of the stock market in the long run. 

Over the past three decades, the world has seen many market downturns – such as the 2000 dot-com bubble, the 2008 Great Financial Crisis, and the 2020 COVID-driven crash. 

However, $10,000 invested in a globally diversified portfolio of stocks in January 1993 would have returned over $1.3 million at the end of 2023. 

Consistency, patience, and a diversified portfolio are the pillars of a successful long-term investment strategy. 

Looking to kickstart 2024 on the right footing? Whether you are a seasoned investor or an absolute beginner, Endowus provides you with a range of investment solutions at a low cost. Be it you’re investing towards your retirement goals, seeking passive income, or looking for exposure to select market opportunities, we have something for you. 

Endowus is the first and only digital wealth platform to allow Singaporeans to invest with their cash, CPF, or Supplementary Retirement Scheme (SRS) — on an all-in-one platform. 

If you don’t know where to begin, you can talk to our licensed client advisors to get personalised, expert advice for your goals. We have decades of experience advising clients from all walks of life, including first-time investors, professionals, and business owners. 

New year financial resolutions for 2024

There you have it, 10 financial moves you can make to set yourself up for success this year and beyond. 

From keeping track of your money inflows and outflows to investing over the long term, tackling just one of what we have shared will go a long way in helping you in your financial journey. 

Here’s to a healthy, wealthy and successful 2024!

Disclaimers
+
More on this Tag
No items found.
10 money moves to make 2024 your best yet

Table of Contents