Many financial experts are forecasting that 2023 could be a turbulent year for the economy, between rising interest rates and the possibility of a recession. However, that doesn’t mean you can’t still get your finances in order and still have a great year growing your savings. Here’s what you need to do to secure your finances this year. Longevity Live Paid Content.
Create a budget
What happens with the economy is out of your control, so it’s important to put your focus on the things you can control. For many people, that will be ensuring that they’re spending less than what they earn.
You can secure your finances by creating a budget, or a spending plan for how you’ll spend your money as efficiently as possible. To create one, you can lay out all your expenses and make sure that your income can cover them.
When your income exceeds your bills, divert the excess money toward your long-term financial goals, such as retirement. When your bills are higher than your income, start reviewing your purchases and eliminate unnecessary spending wherever you see the opportunity.
Photo by Karolina Grabowska
Save more of your earnings
While preparing your budget, it will also be important to work your savings goals into the equation. Do this by setting a target for yourself of how much you would like to save with each paycheck, such as 10% or 20%. Adjust your budget accordingly to make sure that this target is realistic and achievable.
To get more bang for your buck, consider utilizing a tax-advantaged retirement account, such as a 401(k) or an IRA. Saving your money in one of these accounts will lower your taxable income for the year and allow the contributions to grow tax-deferred for decades to come.
Apply for an online loan
Those who have one or more outstanding debts may want to pay them off with the help of online loans. This is especially true if any of these other debts are high-interest or have variable rates.
This is a technique called debt consolidation. Essentially, you’d be using a loan with a lower interest rate, such as an installment loan, to pay off your other debts. Though it can feel like trading one debt for another, the net result will be a lower monthly payment.
Work on your financial education
When it comes to money, nothing is more valuable than having a fundamental understanding of how it works. This is true whether you’re investing for growth or need to borrow funding for a major upcoming purchase.
Spend some time learning about as many financial topics as possible. You can do this by reading books, watching YouTube videos, or listening to podcasts. The more you add to your library of knowledge, the more confident you’ll be in your decisions going forward.
Photo by Tima Miroshnichenko
Ask for help
When you feel like you’re in over your head, don’t hesitate to ask for help. There are plenty of counselors and resources available for those people who feel stuck with their finances. Do yourself a favor and reach out to one of them, so that you can get the guidance you need and deserve.
The bottom line
Despite what many people believe may happen in 2023, you can still make this a great year for you and your money. Focus on things you can control, like maintaining a budget, setting your savings goals, and consolidating your debt. The more you do to become financially educated and get the assistance you need, the more resilient you’ll be in the later years to come.
Who is the author?
Muhammad Saad Shafiq is a blogger, an editor, and a researcher, who writes for various lifestyle publications. He creates blog posts around his interests, hobbies, and daily activities.
Muhammad Saad Shafiq
