As 2022 comes to a close, all eyes are on 2023. The New Year is a wonderful opportunity to start financial planning to set yourself up for a great year. With the projections for 2023 to be a challenging year economically, it’s extremely important to take advantage of this time to start planning. Keep reading to learn how to get your finances in shape for 2023.
Make A Budget
One of the best ways to start managing your money better is by creating a monthly budget. Now that you’re at the end of 2022, you can review your spending over the past 12 months to determine where you’re spending your money. Make a list of your necessary expenses each month, including rent or mortgage, utilities, groceries, any debt responsibilities, and other bills. Then look at your discretionary spending, such as on eating out, clothing, or miscellaneous shopping to see where you may need to cut back.
Tally Up Your Debt
If paying down your debt is one of your financial goals, you need to know how much debt you have. Start by making a list of all debts, including student loans, car notes, and credit cards, with the name of the debt, the type of debt, the amount, the interest rate, the term (if applicable), and the minimum monthly payment. You can then rank them from the highest interest rate to the lowest. For paying back your debt, consider starting with the highest-interest debt since it will cost you more in interest over time.
Confirm You Are On Track With Your Retirement Savings
While retirement may be a long way away, time is your friend when you’re saving for retirement. The earlier you start saving, the more time you have for your funds to benefit from compounding interest. Use a retirement calculator to set your overall nest egg goal and to determine how much you need to contribute with the number of working years you have left. Based on your budget and your current debt standing, you can then set a contribution goal. Also, keep in mind you can set goals of maxing out your retirement contributions for the year.
The New Year is the perfect time to start with a clean slate for your finances. To keep you on track with your financial goals throughout the year, have a knowledgeable financial advisor on your side. Our financial advisors at Curo Private Wealth can help you reach your goals and succeed. Schedule your consultation with us today.