WoW! Reset 2024: Getting to grips with your finances in the year ahead

JANUARY is a long and dreary month so don’t make it harder for yourself. 

Acknowledge any buyers’ remorse you may be feeling for overindulging at Christmas – and park it. It’s quite normal to have over-consumed over the holidays when it came to TV, food, alcohol and gifts. Don’t feel shame, or let negative thoughts spiral and think things like ‘that was such a waste of money,’ or ‘my gift was not as thoughtfully received as it was bought.’ 

Make a commitment that in 2024 you’ll have a better relationship with your finances and importantly, be more aware of the emotional state you’re in when spending money.

By that I mean strive to avoid dopamine driven purchases – that’s when you’re triggered by something you see, be it an influencer or something on Instagram, or a sale that causes a sudden rush of desire. Anything we buy in these circumstances is driven by something chemical, and a surge urgency in our nervous system, a feeling that we’re missing out if we don’t buy – now. Be mindful to take a step back from these situations and focus on your breathing. 

Remind yourself that you won’t be entering January 2025 with buyer’s remorse.

A good practical tip is to get into the habit of looking at your s at least once a month. Become really familiar with what is coming in, and what is going out. Don’t just take a cursory glance either, dedicate at least an exclusive hour to the task to make it worthwhile, and give it its own scheduled slot, so it becomes part of your routine. This practice helps to create a ‘millionaire mindset’ – because you don’t need to be a millionaire to manage your money. If you learn good habits at any stage, you’ll be less likely to get to a position of depletion if money does come your way.

Think how you frame things. As humans we gravitate towards pleasure before pain so why not rename your mortgage something like ‘My Beautiful Life’ ? It creates a whole different energy when you’re depositing money there right?

As humans we’re also prone to breaking good intentions. It’s how we’re wired. That’s why you need to set up automated payments to your savings , to make it a done deal. Cultivate that habit even if you’re tucking away just €20 a month.

To make your saving sustainable, allocate a sum a month (whatever you can afford) to a separate ‘blow out’ fund that comes with no remorse at all. Having said that, do be mindful of what you spend this money on and ask yourself what the return will be, apart from that initial rush. For example, if you’re buying a white shirt – ask yourself if you already have five in your wardrobe!

Here’s something to think about: the brain can’t tell the difference between perceived lack, and actual lack. That’s why it’s so important to cultivate an abundant mindset. For example, if you find 10c down the side of the couch, pop it into a money jar and celebrate. Also ask yourself often, what can you do to feel more resourced? It’s not all about money, it could be lighting a cosy fire; enjoying coffee from a favourite cup. 

Finding gratitude every morning will help raise the frequency in your body, and your brain will start to shift from scarcity to abundance. You’ll start to see glimmers (positives) all around you, and recognise all you have already. The idea is that you won’t feel a need to fill voids with purchases.

If you’re money avoidant, start by having comion for yourself, and know that you’re not alone. Most likely this is what you saw growing up, and you’re learning as you go but this is the year to become an adult in this area. This is the year you take back control.

 Instead of saying ‘I’m crap at my finances,’ say ‘this is my opportunity.’ So, when a bill arrives in the post instead of putting it to one side and ignoring it like you might usually do, try this instead: clear a space at a desk or table for your istrative work, light a candle and take deep grounding breaths, turn your phone off and give yourself 20 minutes to face up to what’s before you. 

It takes 90 seconds for an emotion to work its way through your body so sit with what you’re feeling even if it’s uncomfortable, congratulate yourself for doing that, and move on. This process can help in many other areas in life as well, including relationships.

As you gain momentum, you’ll start to feel more and more empowered. It will start to feel exciting when you start enjoying your relationship with money! So why not meet with a financial advisor? They can invest smaller sums too! Why not start getting to grips with your pension and taking more control over it? You can decide where to invest your money. It will feel so good.

Work to identify what’s your ‘enough’ when it comes to money. What do you need to feel content? What’s your idea of a well-lived life">But also, be aware that if you’re constantly looking to consume externally, you’re most likely trying to self soothe. Ask yourself what you need in any given moment: are you hungry, angry, lonely or tired? 

If you are feeling any of these things you should try tending to your own needs first before buying or consuming.

Don’t feel ashamed of your desires either. If you want to go on a family holiday, there are ways to make that happen. You can go off season, or if you’re travelling purely for the weather, you don’t have to stay in a luxury resort, and you certainly don’t need to buy lots of new clothes before you go. Instead of eating out every night, enjoy one incredible meal while you’re away.

Or if you enjoy your take-out coffee, continue to enjoy that, as research shows it will benefit your mental health. Do what’s important to you, even if you have limited resources. Be true to yourself.

Find Loretta Kennedy on Instagram here.

Anne Marie Gaynor, aka The Irish Budgeting Mammy on Instagram shares her top tips for getting 2024 off to a good financial start and staying there. 

All her suggestions are ones she used personally, to claw herself back from debt when, as a single parent of three kids under seven, she found herself overwhelmed by credit card borrowings.

It might sound obvious, but it’s very worthwhile: track all your spending for an entire month, no matter how big or small. And also track everything that’s coming in. Become very familiar with all your direct debits and make sure you schedule them to suit when you’re paid to avoid any ‘bounce’ fees (which can up to €12). Ultimately, get to a place where you’re aware of what’s happening in your on any given week.

Know what you owe, the exact figure. Be aware of the interest rates you’re paying on borrowings, the duration of the loans and when they’ll be cleared. Write it all down, add it up and work to chip away at the amount by making additional payments when you can. 

However, when it comes to credit card debts the aim should be to clear as soon as possible and then, yes, you guessed it, stop using a credit card.

Instead of a credit card try to build up an emergency fund of €1,000. Be disciplined though or it will never happen. As soon as you get paid, make the deposit. No excuses.

Have what I call a ‘Bare Bones’ or a ‘No Spend’ month where you only spend on necessities. January is as good a month as any to do this. Gradually, you can start to reintroduce different transactions, but this is a good way to realise how much you might have been wasting in different areas without even realising it. I suggest doing a few ‘No Spend’ months throughout the year as it’s a good way to develop a good mindset around money.

Also, try a ‘cash only’ month. Again, January is a good month to give it a go! You’ll find it far harder to break a €50 note in person, than if it was a card or online payment. Try it and you’ll see for yourself.

Regularly switch utility providers and other services – mark it in the diary when your contracts are up and shop around. You’ll find it’s very worthwhile and not half as much effort as you may have thought.

Try to do your food shop online. This way if you overspend it’s far easier to take things out of the trolley, compared to being in the actual store. And when you’re physically there, use a smaller trolley as a way to stay disciplined when browsing the aisles.

I like to have one savings fund that’s used for Christmas, holidays, back to school, insurance etc. Identify what your occasions/one off payments are throughout the year and get the direct debits set up to cover them.

Be prepared for some tough love, in other words, if you don’t have it, don’t spend it. Any other behaviour means you’re going to be costing yourself money, and paying in the future for your past. It’s not worth it.

Don’t be afraid to seek professional help from the likes of MABS – I did– if you need to. It’s better to face up to facts if things are going wrong for you financially than ignoring it. They took huge pressure off me when I really needed it.

Life can be hard enough so do work into your budget a sum for whatever brings you joy – that could be a monthly trip to the beauticians, getting a babysitter or just a coffee. If it’s all drudgery it won’t be sustainable.

Find Anne-Marie Gaynor on Instagram here.