What Are Your Financial Resolutions for 2023?
Happy Holiday Season! We hope you all have a wonderful holiday season and New Years celebration. It’s certainly been a rollercoaster of a year, with inflation at a 40-year high and the Federal Reserve rising interest rates. When a new year rolls around, we often think about the year just behind us and set financial resolutions and goals for the year to come. So, let’s discuss a few great 2023 financial resolutions we’ve seen and recommend to ensure you are starting your new year off on the right foot.
Prior to setting your financial resolutions, it’s a good idea to think about goal setting and how to set challenging, yet realistic and attainable objectives for the coming year. We often talk about the framework of goal-setting, distinguishing between short and long-term financial goals, and sticking to your strategy in order to reach those goals. So, now that we discussed how to set those goals, what are some good resolutions to put in place?
Pay Off Debt
Paying off debt seems to be a common financial resolution as we head into 2023. If you have loans or credit card debt, think about making a plan to pay it off and sticking to it. In this rising interest rate environment, if you have variable interest rate debt, make sure you know your rates and are setting a plan to attack your debt. If you need assistance in setting up a strategy to tackle your debt, we are here to help!
Set a Realistic Budget
When it comes to finances, we see that individuals oftentimes are stressed or concerned about their budgeting and spending. We’ve seen many articles discussing how American’s are changing their budgets and re-thinking their spending this holiday season. Think about your cash flows, wants vs. your needs, along with long and short-term goals to reach a reasonable and realistic budget that works for you and your family.
Automate & Track Your Finances
If you aren’t already doing so, automating your finances is a crucial way to get organized. Aggregating all your accounts into one place that is accessible at the click of a few buttons on your smartphone can drastically change how you view your situation as a whole. If you are interested in utilizing our data aggregation software, let us know and we are happy to help you get started!
Saving For Big Purchase/Goal
Whether it’s a new home, college, or a kitchen renovation, we know saving for a big purchase can be stressful. In our podcast episode with David Pearl, we discussed intentional and smart spending, and how there can sometimes be a psychological disconnect when saving for and actually spending money on a large goal. This disconnect and sense of stress is very common when saving for a big purchase, which is why it’s crucial to set up a savings plan and budget that works for you.
Increase Your Retirement Savings
The contribution limits for 2023 have recently increased. If you are unaware of the retirement inflation-adjustments, check out our blog for a breakdown of those changes. This increase in contribution limits is a great opportunity to ramp up your retirement savings in 2023. Also, as we are only a few days into the New Year, make sure to review your company 401(k) match to ensure you are taking full advantage of your situation.
While these are only a few financial resolutions that may help you improve your financial stability and situation in 2023, there are endless moves that can be made to better your overall financial outlook. If you have any questions about setting attainable goals and resolutions for 2023, email us at info@shermanwealth.com or schedule a complimentary 30-minute consultation here.