As 2023 quickly approaches, many people are busy making resolutions. The most common goals typically revolve around improving health, family life, and money habits. If you found yourself in a bit of a financial dip in 2022, then perhaps your primary resolution is focused on your financial wellbeing. If that’s the case, you’re certainly not alone. The current economic uncertainty is causing many to take a double look at their bank accounts.
Unfortunately, the ringing of the New Year’s bell won’t solve any of the world’s current economic woes. With rising interest rates and inflation, you’re likely going to be making some tough decisions when it comes to your spending habits. That said, there are things you can do today to prepare for whatever 2023 throws your way. Ready to get started? Below are three ways to revitalize your finances in 2023.
1. Make a Plan
You can dream all you want about the future, but the key to getting there is to make a plan. Think of this as your guide or roadmap in your financial journey. It’s a way to stay focused and on track as you navigate through the next year. A better life starts with a solid financial strategy. Evaluate where you are currently and where you want to be years from now.
Your strategy should include all aspects of your financial portfolio — from your income to your debt to your retirement plan. It is a big undertaking to review all of these assets. Give yourself plenty of time to evaluate and analyze everything. You may need to ask yourself some tough questions, particularly if you’re digging out of a hole. Identify your main priorities, both in the short and long-term.
Creating your financial strategy begins with mapping out where you are currently. Take a look at your various sources of income and all of your accounts. If you are investing in the stock market, get a sense of where your money is and how it’s working for you. Just remember that the market is constantly in flux, so you can’t expect to be earning all the time. Many advisers will tell you to stick with your investments for the long haul to reap the most gains.
2. Trim What You Can
Nobody likes to be tied to a strict budget. Yet, sometimes a bit of a pull back on your spending is necessary and can lead to big savings. To begin, take a look at your everyday expenses and habits. Are you constantly ordering takeout because you’re too drained at the end of the day to cook dinner? Perhaps you can stock up on pre-made meals to save you from ordering Uber Eats or DoorDash.
Next, look at ways to possibly bundle and save. For instance, if you’re paying for car insurance as well as renter’s insurance, you may be able to combine them for extra savings. Similarly, many streaming providers such as Hulu, Disney+, and ESPN+ provide combined plans as a cost benefit for consumers.
When it comes to trimming, remember every dollar really does count. This is especially true with regular expenditures. Look at where your money is going and highlight any patterns you see on a monthly basis. You may notice, for example, a decent chunk of your income is going toward entertainment. If so, try to find alternative low-cost ways to have fun. Chances are, you’ll enjoy these activities more knowing your cash is being saved.
3. Save, Save, Save
Once you’ve reduced spending, it’s time to save. While you may have the best intentions, you may forget to re-invest your extra savings. Through automatic transfers, however, your savings will grow without you realizing. The key here is to move a portion of your income each month to a specific bank account. It can be your traditional savings account or something like a 401K or retirement account.
Another way to save automatically is to leverage free browser extensions or apps when shopping. These platforms can provide you with promo codes or coupons to save on current purchases. There are numerous platforms available today that scour the internet specifically looking for better deals and discounts.
Also, remember to sign up as a loyalty rewards member with any of the retailers you consistently shop with. Businesses want return customers. Thus, they will often send incentives and discounts to returning customers, which can help you save in the long run.
Takeaways
The turn of the calendar year is seen as a fresh start. No matter how your finances were in 2022, you can always find ways to do better. Fortunately, these tips will help your bank account grow in this new year and beyond.
Avoid beating yourself up for any financial loss that you experienced in 2022. Go into January with a solid plan. Use this time as a way to lay the groundwork for how you’ll make strides toward your goals. For some, this may mean retiring earlier while others may be focused on finally going on their dream vacation. Regardless of your goals, keep your eyes on the prize and make every dollar count.