How’s Your Financial Health, Reader?

Hi Reader,

Welcome to The Money Series and if you are new here, thank you for signing up. Personal Finance can feel ambiguous and overwhelming, but I am here to help simplify the journey.

As we bask in the euphoria of the end of another calendar year, allow me to play the devil’s advocate and usher in a reflective mood this weekend. By the end of this year, I will have written thirty (30) money letters to you - wow, what a journey. Together, we have explored ways to save and grow your money and now, it’s time to shift the focus to you.

Today, let’s reflect on some key questions about your financial journey in 2024. Your answers to these questions can give insights to help you improve in the year ahead. After all, as the saying goes: what gets measured gets managed.

What financial decision(s) am I most proud of this year?

Did you save better? Pay off a certain debt or create a realistic repayment plan? Did you finally start investing? Perhaps you invested in yourself—taking a course, or buying a tool that boosted your productivity? Did you track your finances more diligently? Did you stick to a budget this year?

Understand that financial wins don’t have to revolve solely around saving, or investing. It could be as simple as saying no to a financial obligation that didn’t align with your goals, fixing a money leak, or spending on things that truly reflect your values. It could be that you finally opened a brokerage account or transitioned to a higher-earning role. Celebrate those wins, no matter how “small” they seem. Each one is a stepping stone for setting even better financial goals for the coming year.

What were some of the poor money decisions I made this year?

You know those decisions - that shopping spree, that investment that sounded too good to be true (and really was), that loan that you gave knowing that the person would not repay, that over-the-budget item you got because you felt too awkward to say no, and oh, the Black Friday sales! We listen but we don’t judge, please🌚😂.

First, you need to forgive yourself. We’ve all been there. Try to list out the decisions, pinpoint what went wrong, and acknowledge any emotions tied to them. Next, extract the money lessons from those decisions. Then, decide on what you will do differently in 2025 - either to alleviate the effect of the poor decisions or to avoid the recurrence of such decisions. Whether it’s improving financial literacy or creating boundaries, now’s the time to plan and take action.

What money beliefs did I learn—and unlearn—this year?

Our money beliefs are shaped by many factors: family, culture, personal experiences, education, and even social media. Maybe you grew up in a household where money wasn’t discussed, making financial planning a struggle. Or perhaps a scarcity mindset from childhood led to overspending or guilt around money.

Ask yourself: What major money belief(s) have I had to let go of this year? Did you stop believing that investing is “only for the rich”? or that ‘‘you only live once’’?. Also, reflect on the new money beliefs you have adopted this year. Have you learned about building an emergency fund, managing debt, or navigating black tax? Decide which beliefs have helped you and which will serve you well in 2025.

On a scale of 1 - 10, how would I rate my financial health in 2024?

How do you think you have done financially this year? rate yourself on a scale of 1 - 10. Did you set up an emergency fund? Improve your spending habits? Increase your income? Pay down your debt as planned? Do you know your financial baseline and what proportion of your income it constitutes? Did you tick off the financial goals you promised yourself you would?

Comparing your good and poor financial decisions side by side, how will you rate yourself overall? How do you think you have done financially this year? You can take this deeper by listing and summing up all your assets (everything you own) and subtracting your liabilities (everything you owe) to calculate your net worth. Enough with tracking the net worth of celebrities, it’s time to know your own🌚. Write it down and set a target for your net worth by the end of 2025.

In conclusion…

Always remember that the foundation of change is self-awareness. Don’t just avoid your finances and move on without reflection. Take a moment over the holidays to examine your finances objectively, understand where you are, and work through any emotions that surface. From there, you can craft a personalized financial strategy for 2025. You can’t keep doing a thing the same way and expect different results, you know.

Got questions? Just hit the reply button and share away!   

Act Now: 

• Download your bank statements for the year,

• Analyze your finances, and calculate your net worth

Reflect on This:

• If someone you respect discovers your financial situation today, will they clap for you - or shake their head?

Till next week, I am rooting for you, money-ly!

Dee         

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Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.