Four resolutions for 2024 to yield the biggest returns, tips from Sussex Financial Planner

1. Use the ‘pots’ method

The method of separating money into different pots is as old as the hills, but it’s effective. It has also been given a digital update with the ability to create separate ‘spaces, ‘pots’ or ‘jars’ within your online bank account, and automatically allocate separate sums into these on payday. If you only do one thing, setting up a separate bills account can be transformational for your finances. After building up your regular monthly payments, set up a direct debit to transfer your share to the bills account. Keep your fixed costs separate and it will be clear how much is left to spend, save or invest. You may like to think of your savings as sitting in three separate jars. You 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 stocks and shares for the long term.

2. New mortgage rates

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 and speak to a mortgage broker early in the process. Financial markets expect interest rates to fall in 2024, providing respite for borrowers — so grab the best deals on savings accounts while you can.

3. Prepare for political change

This year could produce 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. If you want to see changes to rules to do with renting, Lifetime ISAs, then pay very close attention to the parties and individuals who are promising these things, and vote for them. While investors could see a change of government, they should stay focused on the long term. A good investment strategy should never need to fundamentally change, no matter which way the political wind is blowing.

4. Focus on the economy and financial outlookForecasting the economic and financial outlook for the coming year is always difficult. In 2020, the surprise came in the form of a global pandemic; in 2022, it was Russia’s invasion of Ukraine. For 2024, the known unknowns come in two categories: economics and politics. The likely good news comes in the form of falling inflation and the widespread expectation that the Federal Reserve, and other central banks, will start to cut interest rates during the year. Anticipation of this policy shift sparked a strong rally in global equities in November and December, making 2023 the best year for global equities since 2019.