It’s January! Time to take stock of the financial activity that has served you well over the past 12 months, what you would like to continue with, work on to improve, or get rid of in the New Year.

To that end, here are six personal-money recommendations to help you weather 2024 and emerge in better financial standing by the time December rolls along.

1. Review your monthly spending

Tracking and reviewing your spending may sound simple, but is not always easy to carry out. But what might seem like a tedious task can be highly rewarding.

Notably, people often remember big spending but frequently forget small purchases. Tally up the numbers, however, and it can be eye-opening: a daily RM3 coffee, for example, amounts to RM90 a month!

What do you need to do?

• (Continue to) cultivate the habit of tracking your daily spending. There are many online apps available that can help you to achieve this.
• (Continue to) set aside time at least once a month to review those figures.

By doing a regular review, you can better see where your money is going, which in turn will help you identify the expenses you wish to cut and/or areas you might want to redirect your cash to.

2. Check your emergency funds

Apart from your savings, much has been said about the need for an emergency fund. This is money that will come in useful should an unexpected situation arise, such as a medical event, accident, or natural disaster.

Unforeseen circumstances can be more easily handled if you are equipped with backup money. In addition to its practical use, contingency funds help protect your mental-emotional wellbeing as you would not need to worry over where your money comes from.

3. Gradually pay off loan principals

Do you have a mortgage, or a car or student loan? The principal refers to the sum you borrowed from the bank, which also determines how much interest you pay. To pay less on your monthly instalment, work on paying off the principal.

As borrowing interest rates in Malaysia have increased to 3% from their lowest of 1.75% during the pandemic, many have already felt the sting of having to pay more. So, take action this year and contact your financial institution to find out what principal-lowering options are available to you.

If you are overwhelmed by your debt situation, do consider consulting a licensed financial planner.

4. Diversify investments

If investing is a way of growing your money beyond a savings account, diversifying means parking your money in different types of investment vehicles.

In 2024, consider assets such as fixed-deposit accounts, exchange-traded funds, or stocks.

5. Develop multiple income streams

This year, (continue to) secure your income by not relying on a single source. If you have time to spare after work, consider freelance or gig work, which would allow you to earn extra cash and gain experiences that may be different from your primary job.

In addition, your hobbies could help you earn extra money. Many amateur craftmakers market their products online or post videos on their process, which could potentially be monetised.

6. Invest in yourself

Learning is a lifelong process that, financially, can provide you with advantages. In today’s diverse world, knowledge and expertise in different areas will help you make more informed decisions and reap greater dividends through different revenue streams.

Consider investing in courses that could help you upskill, or go back to study: education is a worthy investment that can only benefit you in the future.

If affordability is a concern, there are many free online videos and courses available to help you improve on or gain new skills; or you can pay a visit to your local public library.

This article was written by Su-Wei Ho for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.