Ways to Financially Prepare for the New Year

a Ways to Financially Prepare for the New Year

by Wesley Oler IV | Nov 7, 2022 | Investments, Wesley Oler IV

Diets and exercise plans aren’t the only New Year’s goals. Sometimes the most critical aspect of your life is your money. This may be particularly true for you when 2021 comes to a close and COVID-19 substantially affects your wallet.

The new year is a fresh opportunity to improve your financial situation. Here are some resolutions to keep your bank account and wallet happier in 2023.

Learn How to Invest While it may not be the most straightforward resolution on our list, investing is one of the most effective strategies to generate money. I understand if you don’t believe you have the time to begin investing. Understanding investing might take time. While it is possible to

invest without the assistance of an adviser, many of us choose to do so since, let’s face it, it is just so much simpler. Remember that advisers include robo-advisors, which may assist you in deciding what to invest in and when to purchase and sell.

Create an Emergency Fund You don’t want to be caught in an emergency without a financial support cushion. When unforeseen obstacles enter your life, like losing your job, being in an accident, or experiencing a worldwide epidemic, emergency funds may be lifesavers. To begin, calculate your monthly costs. This should cover your rent or mortgage, utilities, and other essentials. Experts agree that this should be three to six months of spending, but it’s never a bad idea to overestimate how much money you’ll need in an emergency. If you’re unsure how much money you should put aside for an emergency fund, use MU30’s easy emergency fund calculator to figure it out.

Clear Your Credit Card Debt If credit card debt impedes your financial performance, make it a goal to pay it off in the new year. Paying off credit cards is a vital step toward financial wellness. You are seriously harming your credit score otherwise. Balance transfer credit cards are wise when looking for strategies to pay off debt. While it may seem counterproductive, these cards may help you consolidate your debt and even halt it from accruing interest. That is a significant incentive!

Create a Budget Learn how to keep track of your spending. Start a budget as a New Year’s Resolution. A budget is required if you do not already have one. Making and adhering to a budget is the only true way to know all income and expenses flow. Budgets compel you to look closely at the money you bring in, the money you spend, and the money you may owe. Starting a budget might be intimidating if you have never done it before. Budgets, in reality, can be liberating. Once you’ve become accustomed to sticking to your budget, you can start looking for methods to save money for the future.

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