Finance resolutions are goals that you and your family aim to achieve within the year. Since the new year is upon us, it is time to make your finance resolutions for 2023. These resolutions can include improving personal finance, such as your income, managing your expenses, reducing your debt, or saving and investing.
The first step to achieving your goals is to realize what they are. Once you have written down the target for the year, you can make your resolution and stick by it.
Finance Resolutions for 2023
Finance resolutions must be concise and exact, and you must track their progress throughout the year. Below are some essential finance resolutions you should make and adhere to for 2023.
Focus on Your Needs Instead of Wants
It is easy to succumb to desire. We often find ourselves wasting money we do not have on things we do not need. One of the main reasons for this is that we cannot distinguish between our needs and wants, and that is one of the first finance resolutions you must make.
Needs correspond to the basic things you must have for survival, such as food, shelter, and clothing. Wants are things that vary depending on a person’s interest and are often influenced by their interests.
While it is fine to let loose occasionally, you must consider if you want it or need it when buying something expensive.
Create a Budget
Budget planning is one of the best ways to keep track of your finances. Your budget should detail your income and your expenses, so you can understand where you lack and what you must work on. Before creating a budget, set a financial goal. The goal can be something simple, like saving a certain amount. You must also set a limit to your budget, so you only expend what is necessary.
Less than 40% of Americans have $1,000 in their savings. Savings are essential in case of emergencies where you might require money. You must set a goal to save a certain amount by the end of 2023. The amount you set must be based on your budget report. For example, if you aim to save a thousand dollars by the end of the year, you must save at least $83 a month. Therefore, your budget must leave room for that amount.
Making an Extra Payment Towards Your Debt
An extra payment a year on your loan can shorten the length of your debt by a few years, depending on how long the loan is due. The debt can be your mortgage or student loans, which can add to your expenses. However, your finance resolutions should include making at least one extra payment towards your debt.
Get Help With Your Finance Resolutions
With over 30 years of experience guiding families, individuals, and businesses in their financial planning, Maggi Tax aims to create innovative and extensive financial strategies for our clients. We can help you with your income and investment planning, 401k rollover management, and making sure you reach your goals in your finance resolutions.
Call us at (727) 799-1701 to schedule a meeting or fill out our form online, and our agent will get back to you.