It’s hard to believe that 2023 is right around the corner. We hope you are approaching the end of the year with gratitude for what 2022 has brought, even though there may have been some bumps in the road, and excited for what is to come in the new year.
As you reflect on the past and move into 2023, we put together the following financial tips to keep in mind with the goal of helping you stay on top of your finances and be better positioned toward achieving your financial goals this coming year:
Review Your Budget & Expenses: The day-to-day tasks of life can be so consuming that many people do not stop to pay attention to how much they are spending, especially on the little things, and those little things can add up. We recommend reviewing how much you’re spending every few months, but especially at the end of the year—and certainly during a time of inflation and volatile markets. This can help to see where your money is going and where you might be able to save.
Consider a Savings Challenge: If sitting down to log expenditures seems dull and not motivating, why don’t you think of it as a challenge? Once you see how much you are spending each month, especially on those small expenditures, try to save a percentage of those expenses each month for 3 months. Then, at the end of the 3 months, see how much you saved. It could be a fun experiment to show how much you could be saving, investing, or putting into better investments. Plus, you may have some extra money at the end of it!
Review and Consolidate Debt: This is a great time to make a list of debt and take a step back to think about how it may be helping or hurting your financial picture. For example, some debt can hurt your credit while other debt might help. Making a payment each month, on time, may help your credit, but missing payments can be a burden on your credit, especially if you anticipate needing a new loan down the road. Also, some debt may be able to be consolidated and/or refinanced for a better rate so you can save money to put towards either paying down the debt faster or putting it to better use elsewhere.
RELATED: Read how to set better financial habits.
Review Insurance Plans: Insurance might not be the first thing someone might consider when thinking through their financial strategy for the new year, but it definitely plays a role. Taking less than an hour of your time shopping around for auto and home/renters’ insurance quotes might put a substantial amount of money back in your pocket. In addition, reviewing life insurance and long-term care plans is something that may be beneficial to you and your family if you have not already done so. If you have questions about this topic, our financial advisors are equipped to help.
Set Up a Meeting with Your Financial Advisor: With all of that said, one of the best things you can do to set yourself up for financial success is to check in with your financial advisor. Often, situations change and the financial goals that someone might have set up initially need adjusted, perhaps due to a new family member or a change in jobs and income. Your financial advisor will sit down with you to review your current financial picture, any changes that have happened or are anticipated within the next year, and your goals to ensure you are on track.
We hope 2023 brings you much success and happiness, and that you are prepared to meet your financial goals. If you have any questions about the tips above, or if we can help with your financial planning in any way, call us today at 412-630-6000. Our experienced financial advisors are ready to help.
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