The start of a new year provides an excellent opportunity to set financial goals and make a fresh start with your finances. With economic uncertainty, job losses, and money woes amidst the pandemic, it’s all the more important to take control of your finances and plan for the financial year 2023. This article by Cody Biggs will discuss some financial New Year’s resolutions for 2023 that can help you stay financially stable and gain more control over your finances.
Cody Biggs Lists Financial New Year’s Resolutions For 2023
1. Create a Realistic Budget
The first step towards financial independence is to set a budget, says Cody Biggs. A budget outlines your income, expenses, and financial goals. It helps you track your expenses, identify areas where you’re overspending and make necessary changes. Creating a budget is not a one-time process; it requires constant evaluation and adjustment to fit your lifestyle’s evolving nature. So, start working on your budget to have a clear overview of your expenses and see where you can cut down to save more.
2. Reduce Your Debt
Debt can be a significant burden and can hinder your financial progress. In the current economic climate, it’s more important than ever to reduce your debt load. Start by prioritizing high-interest loans and credit card payments. Once you’ve paid off your high-interest debts, focus on paying off other debts with a lower interest rate. You can also explore debt consolidation options to simplify your repayment process.
3. Build Your Emergency Fund
The pandemic has shown us that unexpected events can have a profound impact on our lives, including our finances. If you don’t have an emergency fund, you’re at risk of taking on debt to cover any unexpected expenses. It’s essential to build an emergency fund that can cover up to six months of expenses. Start small by setting aside a small amount of money each month, and gradually increase it as you’re able.
4. Invest in Your Future
Investing may seem overwhelming, but it’s an essential part of building wealth and planning for retirement. If you’re not sure where to start, consider speaking with a financial advisor or taking online investment courses. You can also start investing with small amounts through apps that provide fractional ownership.
5. Get to Know Your Credit Report
Your credit report is a reflection of your financial history, and it impacts your ability to get loans, credit cards, and mortgages. Checking your credit report regularly can help you identify errors and take corrective measures if required. You can obtain a free credit report from the three major credit bureaus – Experian, Equifax, and TransUnion – once a year, or you could use credit monitoring services or apps to keep track of your credit score.
6. Automate Your Savings
Automating your savings allows you to save without even thinking about it. Set up automatic transfers from your checking account to your savings account each month. If you’re not sure how much you should be saving, use the 50/30/20 rule – allocate 50% of your income for your needs, 30% for your wants, and 20% for your savings.
7. Learn to Live Below Your Means
According to Cody Biggs, living below your means doesn’t mean living a deprived life; it means being mindful of your expenses, prioritizing your needs, and cutting back on your wants. Review your current expenses and identify areas where you can cut back, such as dining out or unnecessary subscriptions.
Cody Biggs’s Concluding Thoughts
In conclusion, setting financial New Year’s resolutions can help you achieve financial stability and lead a stress-free life. Cody Biggs recommends keeping in mind to set realistic goals, track your progress, and make adjustments whenever necessary. With hard work, dedication, and proper planning, you can turn your financial dreams into reality. Here’s to a financially fruitful 2023!