Making Money Moves: Financial Resolutions for 2023
December 29, 2022 12:00 AM
The New Year is a perfect time to reflect on years passed and commit to making this year even better. Many people make resolutions related to health, relationships, career, and finances. We’ve compiled a list of small, medium, and large resolutions you can make to set yourself and your finances on the right track going into 2023.
Consider these New Year’s resolutions to make the most of your money this year:
- Set financial goals: Setting financial goals for the new year is a great way to focus your efforts and start doing more with your money. Some common financial goals include saving for retirement, paying off debt, building an emergency fund, or saving for a down payment on a house. When setting financial goals, it's important to be specific and measurable. For example, instead of saying "I want to save more money," you might set a goal to "save $500 per month for the next year." It's also important to be realistic and consider your current financial situation.
- Create a budget and stick to it. This will help you to better manage your money and avoid overspending. Remember the 50/30/20 rule: spending 50% of needs, 30% on wants and 20% on saving.
- Save more money. This could involve setting aside a certain amount each month for savings, finding ways to earn extra income, or cutting back on expenses.
- Pay off debt. If you have credit card debt, student loans, or other forms of debt, make a plan to pay them off as quickly as possible. This will help to reduce the amount of interest you pay and free up more money for saving and investing.
- Build an emergency fund. Having an emergency fund can help you to cover unexpected expenses, such as a car repair or medical bill, without having to rely on credit cards or loans. Aim to save enough to cover at least three to six months of living expenses.
- Learn about investing: All investing comes with risk of loss but having a solid understanding of your investment can go a long way in avoiding falling victim to an investment fraud or an investment outside of your risk tolerance. Before making any investment, always be sure to research and investigate first.
- Start investing. Investing can help you to grow your wealth over the long term. Consider speaking with a financial advisor or doing your own research to learn more about different investment options and how to create a diversified portfolio.
- Review your subscriptions: It's easy to sign up for a subscription service and forget about it, but these small expenses can add up over time. To save money, it's a good idea to review your subscriptions regularly and cancel any that you no longer use or don't find valuable. You can also try negotiating a better rate or looking for discounts or promotions; as well as comparing prices and looking for alternatives that may be cheaper or offer more value for your money.
- Monitor your credit: Monitoring your credit is important for several reasons. It helps you keep track of your credit history and ensures that the information being reported to the credit bureaus is accurate. This can be especially important if you are planning to apply for a loan or a credit card, as a good credit score can help you get approved for better terms and rates. Monitoring your credit can also alert you to any fraudulent activity that may have occurred on your accounts, allowing you to take immediate action to protect yourself.
- Attend a webinar or event: Attend an in-person or virtual event offered by the Department’s outreach staff to help sharpen your understanding of financial concepts.
With a little planning and discipline, you can set yourself up for financial success in the coming year. Remember, it's never too late to start making positive changes in your life, and by setting these resolutions, you are taking control of your money and making it work for you.