As the new year approaches, many people take the opportunity to reflect on their financial goals and make resolutions for the coming year.
Whether you are looking to save more money, pay off debt, or invest in your future, there are many strategies you can use to improve your financial situation.
In this article, we’re going to go over 5 key things that will help you get your money right in 2023.
#1. Budgeting is Underrated
One of the most important things you can do to improve your finances is to create a budget.
A budget is a plan that outlines how you will spend and save your money each month.
By keeping track of your income and expenses, you can ensure that you are living within your means and making the most of your money.
One key aspect of budgeting is to track your spending.
This means keeping a record of everything you spend money on.
By paying attention to where your money is going, you can identify areas where you may be able to cut back or save more.
Or if you’re like me, identify what it is you really like spending money on, and let that be a drive to increase your income.
But more on that later.
#2. Setting Financial Goals
Another important aspect of budgeting is setting financial goals.
Whether you want to save for a down payment on a house, pay off credit card debt, or save for retirement, having specific goals in mind can help you stay motivated and focused on your financial progress.
Getting your money right in 2023 is going to require you to really narrow down on what you’re trying to accomplish financially for the new year.
It’s important to note that it is never too late to set financial goals.
However, the earlier you get serious about meeting your financial goals, the sooner you will be able to realize your potential.
As soon as you’re done writing these goals, begin creating a plan of action.
Write down what you will be tackling with sheer focus for the new year to meet these goals.
Don’t just make it a goal, create a real plan.
#3. Increase Your Income
In addition to budgeting and setting financial goals, there are many other strategies you can use to improve your finances in the new year.
One strategy is to increase your income.
This could involve asking for a raise at work, taking on additional freelance or part-time work, or starting a side hustle.
When I was working for the family business, I was still looking for ways to increase my income.
Although my income was going up every year and I had a ‘safe’ career, I wasn’t satisfied.
I started a blog, learned how to earn 6-figures with it, and created time-freedom.
Increasing your income is going to provide you with opportunities to create an income generating side hustle on the side and give you the means to save or invest more for the new year.
#4. Reduce Unnecessary Expenses
Another strategy is to reduce your expenses.
This could involve cutting back on unnecessary expenses, such as subscription services or other bad habits that aren’t serving you.
Finding ways to save on everyday expenses, such as by shopping around for the best deals is a great way to keep your money in check.
Anyone can be wasteful or careless with their money.
Keeping an eye on where your money is going at all times separates careless spenders from responsible spenders.
#5. Invest Your Money
Another way to improve your finances is to invest in your future.
While investing carries risks, it can also provide the potential for long-term growth and financial security.
Investing in index funds such as the S&P 500 will not only yield dividends, but your portfolio’s value may also grow substantially in the next bull market.
While investments tend to fluctuate, the greater markets tend to trend up long-term.
Never invest more than you’re willing to lose, work towards generating and increasing your income, and you’ll feel on top of the world.
#6. Build a Strong Emergency Fund
Finally, it’s important to have an emergency savings fund in case of unexpected expenses or emergencies.
This could be a savings account or other liquid investment, such as a money market fund, that you can access quickly in case of an emergency.
Having a strong emergency fund is like wearing strong armor in life.
An emergency fund will help you pivot when you’ve taken financial hits, such as losing a job, drop in business revenue, or losses in the market.
Your emergency fund should help you get on your feet if you happen to experience a financial bump in your journey.
Nothing feels greater than when you increase your income, know where your money is going, have your money working for you, and have a strong emergency fund to back you up should you take a small or big hit.
Stay Focused and Patient
As you work to improve your finances in the new year, it’s important to be patient and consistent.
Building wealth and improving your financial situation takes time, and it’s important to stay focused and dedicated to your goals.
It can also be helpful to seek the guidance of a mentor or people who are already where you want to be.
Overall, the new year is a great opportunity to take control of your finances and work towards a more secure financial future.
By setting goals, creating a budget, increasing your income, reducing your expenses, investing in your future, and building an emergency savings fund, you can take steps towards improving your financial situation and achieving your financial goals.