Here are a few ideas for your 2024 financial checklist to help put you into an even better financial position by this time next year.
Despite the higher interest rates and fear of the recession in 2023, many doctors who invested in the stock market made over 20%. Many wonder whether their investments will continue growing as much in 2024.
The truth is, no one has a crystal ball on what will happen. Here are a few ideas that may help you be in a better financial position this year.
We wish you nothing but success in 2024!
- Calculate Your Net Worth
This is a great place to start. If you want to set financial goals for yourself, it helps to know where you are.
It’s not a complicated equation. You add up your assets subtract your liabilities, and the result is your net worth.
- Track Your Portfolio
You want to determine where you are at. What do you own? In which accounts? How are these investments performing?
- Track Your Spending and Consider a Budget
Once again, if you want to know how you are financially, you must keep track. Since spending is a critical component of your savings rate and your required nest egg to consider yourself financially independent, it’s essential to know how much you spend monthly and yearly.
- Increase Your Savings Rate
When doctors wonder how much they should save annually, many advisors recommend saving 20% of their gross income.
If you have tracked spending, you may be able to identify money being spent that’s poorly aligned with your long-term goals.
If you can increase your savings rate to the point where you are paying off debt or investing a dollar for every dollar you spend, you will be in even better shape before you know it.
- Optimize Tax-Advantaged Accounts
Annually review your Registered Retirement Savings Plan (“RRSP”), Tax-Free Savings Account (“TFSA”) and First Home Savings Account (“FHSA”) limits, if applicable, and determine whether or not it makes sense from a financial and income tax perspective to maximize the contributions.
