With the holidays well in the rearview mirror, now is a great time to examine your financial health.

If one of your goals for 2024 is to work on improving it, follow these guidelines on the basics of managing your money and strengthening your savings.

Take stock

First, complete an assessment of your income, expenses, debts, and savings. This will help you obtain a better picture of your financial standing, enabling you to identify your strengths and weaknesses and determine what you need to work on. Be sure to carefully document everything, such as by creating a detailed spreadsheet, so you can refer to it as needed.

Identify your goals

You’ll also need to decide on your long-term objective. Do you want to reduce your credit card debt, save up for a down payment on a home, or put money away for retirement? Once you have set this main goal, establish smaller ones that will help you reach it. For instance, you could set monthly savings targets for yourself, adjusting them higher or lower as necessary based on your expenses and needs. This will help you stay on track so you can reach your year-end savings goal.

Create a budget

Realizing your financial goals will be far more difficult if you don’t develop spending limits, which is why budgeting is essential for good financial health. Whether in your spreadsheet or a budgeting app, allocate your income into different categories, starting with “needs” like housing, groceries, and debt payments. Then consider what you want to put toward your goals and other savings. Whatever’s leftover is how much you can afford on “wants” such as entertainment and dining out.

Once your budget is set, watch your spending to see how well you stick to it. For example, the Goodbudget app can create various categories like groceries, gas, and utilities, and track how much you spend. The app will generate two helpful reports for you: your income versus spending and your spending by category (called “envelopes” in the app). You can use these reports to see where you may need to reduce the money you spend. Alternatively, if they show you’re saving more of your income than you expected to, you could put them to work for you by funneling them into your goals or opening a high-yield savings account.

Work to reduce debt

If one of your objectives is to tackle your debt, aim to pay off high-interest balances and loans first. Useful strategies include asking for a lower rate (depending on the type of loan), obtaining a balance transfer card for your credit card debt, and refinancing your mortgage or car loan. You could also do most, if not all, of your shopping with your debit card or even cash to avoid accruing additional debt.

Save up

Any prudent financial strategy should include stashing some cash. Building an emergency fund may reduce stress, provide a safety net, and help you realize life goals. Beyond that, reach out to your financial advisor to discuss investments and strategies you could use to help grow your money.

Diversify

For extra financial cushion, consider finding additional income streams, such as by freelancing or creating a product to sell. You can then channel those extra earnings toward your financial goals, whether they include being able to afford a cruise vacation or donating more to your favorite charitable cause.

As you work the next few months toward tapping your financial potential, regularly review your progress and adjust your approach accordingly to help ensure sure you stay on track toward reaching all your yearly goals.