Setting financial goals for yourself for the coming year will help you prioritize your financial well-being. They should include both short-term and long-term goals. They should be precise, measurable, and achievable. Here are seven recommended goals to help you chart your course for a great 2023.
1 Budget
You may be tired of hearing the word budget, but it’s one of the most important goals when it comes to your overall financial well-being. First, determine your income. Is it fixed or does it fluctuate? Next, track your spending, so you have a clear picture of where your money is going. Look back over the past few months. This may surprise you and help you identify where you can save. Finally, list your fixed expenses. Things such as a mortgage, utilities, car payment and upkeep, groceries, etc. Now you can determine your monthly budget. Once you set that budget, be sure you stick to it.
2 Set Savings Goals
Whether it’s building an emergency fund, saving to buy a house, saving to pay for a child’s education, or saving for retirement, growing your savings should always be a priority in your budget. In fact, we recommend you set specific savings goals. For example, contribute another 1 or 2% of each pay into your 401(k) each month or an extra $50 each month into an emergency savings fund. Make savings automatic. Accomplish this with automatic deductions and transfers that go directly from your pay to various savings accounts. This will help you reach both your short-term and long-term savings goals. Read more about keeping your savings goals on track during turbulent times.
3 Increase Your Income
There are vast opportunities for increasing your income in the coming year. Everything from cutting your expenses, taking on a part-time job, or starting a side hustle, to throwing your hat in the ring for a promotion at work or asking your employer for a raise. Need some ideas? Tap to read more ideas for earning extra cash to ease your finances.
4 Pay Down Debt
Debt can feel like a heavy monkey on your back that never seems to ease up. Even the smallest debt can become overwhelming when not addressed. 2023 is the ideal time to tackle your debt. A focus on paying down debt should be included in your new budget. If you are struggling with high-rate credit card debt or high-rate loans, you may want to consolidate the balances into a lower-rate option. Debt consolidation can help you to focus on chipping away at the total balance with one payment each month. Learn more about Choice One’s VISA Balance Transfer Credit Card and low-rate home equity loan options. They are both great solutions for consolidating high-rate debt into one more affordable payment.
5 Start Investing
Whether you invest in the stock market or in real estate, investing is a good way to grow your money and build wealth. It begins with determining your tolerance for risk and identifying how much you can afford to invest. Tap to read more about investing in stocks.
6 Shop for New Insurance Coverage Quotes
At least once each year you should compare insurance quotes to ensure you aren’t overpaying for your policies. This goes for auto, renters, and homeowners’ insurance, among others you carry. You may find a significant discount for bundling. Don’t forget to ask your current insurer about getting a price reduction. Once you’ve shopped around, you will have greater leverage. Cutting your expenses will provide you with more money to save.
7 Hold Yourself Accountable
After you’ve decided on your specific goals, you need to work to achieve them. Write them down and track your progress. Some goals will be achieved faster than others. As you accomplish certain short-term goals, it will give you the incentive you need to conquer longer-term goals. Holding yourself accountable is the best way to stay focused on your financial goals.