{"id":1587,"date":"2024-01-02T13:02:50","date_gmt":"2024-01-02T13:02:50","guid":{"rendered":"https:\/\/www.innov8fs.co.za\/blog\/?p=1587"},"modified":"2026-03-18T11:46:08","modified_gmt":"2026-03-18T11:46:08","slug":"four-ways-to-sort-out-your-financial-life-in-2024","status":"publish","type":"post","link":"https:\/\/www.innov8fs.co.za\/blog\/2024\/01\/02\/four-ways-to-sort-out-your-financial-life-in-2024\/","title":{"rendered":"Four ways to sort out your financial life in 2024"},"content":{"rendered":"

Following a year of financial shocks and budget squeezes in 2023, you may well be resolving to start the new year with a new money regime. But what simple changes could yield the biggest financial return for the least effort?<\/p>\n

FT Money Clinic podcast experts share four top tips below. Subscribe to the show for a (free) weekly dose of personal finance inspiration in the year ahead.<\/p>\n

1. Master the jam jar method<\/h3>\n

Even the affluent need to budget. The jam jar method of separating money into different pots is as old as the hills, but it\u2019s effective. It has also been given a digital update with the ability to create separate \u201cpots\u201d, \u201cjars\u201d or \u201cspaces\u201d within your online bank account, and automatically allocate separate sums into these on payday.<\/p>\n

The tricky bit is setting up a system, but Twixtmas \u2014 the period between Christmas and New Year \u2014 is the ideal time to plan ahead.<\/p>\n

\u201cIf you only do one thing, setting up a separate bills account can be transformational for your finances,\u201d says Sara Williams, an experienced debt adviser who runs the Debt Camel blog and Instagram account.<\/p>\n

After totting up your regular monthly payments, set up a direct debit to transfer your share to the bills account (couples with divergent incomes may want to think about the fairest ratio). Keep your fixed costs separate and it\u2019s obvious how much you have left to spend, save or invest.<\/p>\n

\u201cI like to think of my savings as sitting in three separate jars,\u201d says Timi Merriman-Johnson, a financial adviser better known online as Mr Moneyjar. \u201cYou have your emergency fund in an easy access savings account; a separate account for things you want to do within a year or two like holidays or a big life event, and then anything over and above that can be invested in the stock market for the long term.\u201d<\/p>\n

Williams also recommends setting up \u201csinking funds\u201d for putting aside money monthly for annual expenses, such as renewing insurance policies, tax bills or even next Christmas \u2014 payouts that might otherwise be big pinch points.<\/p>\n

If your mortgage fix comes to an end in 2024, start looking for a new deal up to nine months beforehand. Use an online mortgage calculator to get a sense of how your monthly payments could increase, advises Merriman-Johnson, and speak to a mortgage broker early in the process.<\/p>\n

Financial markets expect interest rates to fall in 2024, providing respite for borrowers \u2014 but grab the best deals on savings accounts while you can.<\/p>\n

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2. Focus on the most important thing to invest in<\/h3>\n

Think beyond the stock market \u2014 your most important investment in the year ahead could be yourself.<\/p>\n

\u201cThere\u2019s only so much we can cut back,\u201d says Bola Sol, a financial adviser and content creator. \u201cNow it\u2019s all about how we can make more money, make the most of skills that we currently have, or learn new skills.\u201d<\/p>\n

SEASONAL APPEAL<\/strong><\/p>\n

\"\"Click here to bid for lunch with FT journalists and raise money for the FT\u2019s Financial Literacy and Inclusion Campaign charity<\/p>\n

The benefits are bigger for younger groups, she says. \u201cI\u2019m paying close attention to what artificial intelligence means for us as millennials and Gen Zs, and how we need to upskill. We can\u2019t get left behind.\u201d<\/p>\n

Merriman-Johnson says investing in yourself could be completing a course, gaining a qualification, trying public speaking, learning to code or even learning a language. He notes: \u201cYou could be one skill away from doubling your income.<\/p>\n

\u201cOnce you\u2019ve increased your capacity to earn, which then stays with you for the rest of your life, you can then invest more of that money into financial assets, your pension and so on.\u201d<\/p>\n

3. Prepare for political change<\/h3>\n

Next year promises a huge political moment on both sides of the Atlantic, but what could it mean for your money? Manifesto promises are likely to favour older voters, but experts urge the under-30s to become politically engaged and campaign for change.<\/p>\n

Recommended<\/strong><\/p>\n

\"\"\u201cIf you want to see changes to rules to do with renting, to do with the Lifetime Isa, to do with progressing in your career, then pay very close attention to the parties and individuals who are promising these things, and vote for them,\u201d says Merriman-Johnson.<\/p>\n

While investors could see a change of government, they should stay focused on the long term. \u201cA good investment strategy should never change, no matter which way the wind is blowing,\u201d says Damian Jordan, star of the Damian Talks Money YouTube channel.<\/p>\n

\u201cI\u2019m a global index fund investor, and all that means is I just back that the world will keep turning. So I will continue to do that every month until I need the money, which for me won\u2019t be for another 30 years or so. Whatever happens, I just stay consistent.\u201d<\/p>\n

4. Apply \u2018sandwich theory\u2019 to tough financial decisions<\/h3>\n

With so much pressure on budgets in the year ahead, Sol says setting financial boundaries for yourself is vital. \u201cFour of my friends are getting married in 2024 and three of those are abroad, so I\u2019m having to do lots of careful planning,\u201d she says.<\/p>\n

For this and other dilemmas, protecting your budget may well involve having to say no. Merriman-Johnson says \u201csandwich theory\u201d could help.<\/p>\n

\u201cIf you just say no to someone, they\u2019re likely to argue back. So sandwich the bad news in between two more positive pieces of news. Start off by saying a positive thing \u2014 \u2018thank you very much for inviting me to your wedding or stag\u2019. Then insert the no \u2014 \u2018I\u2019m sorry I can\u2019t make it\u2019 \u2014 then round off with a positive thing \u2014 \u2018but I would love to catch up with you\u2019. This is a far more palatable way to receive a no.\u201d<\/p>\n

With the soaring cost of weddings, Jordan points out that couples may actually be relieved if you politely decline an invitation: \u201cYou\u2019re thinking that they\u2019ll be offended if you don\u2019t come, but they could be thinking they\u2019ll be offended if we don\u2019t invite them.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Following a year of financial shocks and budget squeezes in 2023, you may well be resolving to start the new year with a new money…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1587","post","type-post","status-publish","format-standard","hentry","category-innov8ions"],"_links":{"self":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/comments?post=1587"}],"version-history":[{"count":1,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1587\/revisions"}],"predecessor-version":[{"id":1591,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/posts\/1587\/revisions\/1591"}],"wp:attachment":[{"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/media?parent=1587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/categories?post=1587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innov8fs.co.za\/blog\/wp-json\/wp\/v2\/tags?post=1587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}