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8 Financial New Year’s Resolutions to Make in 2023
It’s never too late to learn how to be smarter with your money
With the holidays long over and gone, it’s time for the annual “new year, new me” assessment. A lot of people are entering 2023 with a lot of motivation, and perhaps you are too. Now’s the time: maximize the hype of the new year by building new habits and making small tweaks in your lifestyle to work toward improving your life. A great place to start? Acquiring better, smarter money management skills.
Why Personal Finance is Important
Personal finance is the general term for managing, saving, and investing money you’re earning, spending, and keeping for yourself. When it comes to short-term goals, following best practices on personal finance ensures that you get through each day with money-related worries on the back burner. Meanwhile, making it a priority in the long term helps you plan and prepare for your future.
Aside from budgeting and expense management, personal finance includes retirement funds, investment plans, and the like. To pay for these, you should manage and allocate your income properly to help you achieve financial wellness. But let’s not jump the gun and talk basics.
Financial New Year’s Resolutions: 8 Changes That Can Help You Attain Your Financial Goals
Financial wellness in 2023 is achievable, even when you start out committed to making small tweaks; in fact, minor adjustments are the key to resolutions that stick. This may mean, at times, acquiring something new. But there are cases wherein it’s a matter of doing less.
Ahead, get to know some practical financial New Year’s resolutions you can take on.
#1: Trim down your expenses by budgeting
Those who go without a budget are missing an important segment of managing personal finances. You need to have this basic but straightforward understanding of what you’re bringing in and what you’re spending on so you can ultimately work your way toward saving consistently.
Creating and sticking to a budget helps you stay in the driver’s seat, and the important habit to take on here is tracking. Keep track at all times and be diligent about jotting down your expense and income entries. Downloading budgeting apps or making it a habit to list your purchases should help you find out how much you should be spending and if adjustments are necessary. Another benefit to working with a budget is it gives you a better understanding of your weak spots, too, when it comes to finances.
#2: Save up for retirement
Think you don’t need to get started on this fund because you’re nowhere near retirement age? Think again. Saving for retirement as early as now allows you to take full advantage of compound interest. With inflation and economic uncertainty striking unexpectedly, prioritizing your retirement is a great way to protect yourself and ensure financial comfort and security during your golden years.
#3: Start investing
One of the best ways you can earn money passively is through investments. Rather than just holding your money in a savings account, investing allows your money to grow and compound over time. In other words, if your job makes you work for your money, then investing makes your money work for you.
#4: Evaluate your “eating out” budget
Perhaps it’s time to come face-to-face with an indulgence: maybe you’ve been eating out more than you should. Whether this is because you have no time to cook or tend to crave one comfort meal after another, most people don’t realize how much they spend on food—especially when they don’t track.
An easy solution is to cook dishes at home and look into mastering the art of meal prep, which entails carving out time at the start or end of the week to prepare whole meals in batches, in advance. This isn’t just a great way to save time, effort, and money, but it can also lend itself to lessening any decision-making fatigue.
#5: Start an emergency fund
Any accident, illness, or unexpexted job loss can eat away at months’ or years’ worth of savings. An emergency fund can help you cushion any blows that may come your way and buy you time so you can plan your next steps.
There’s no fixed amount to consider when starting an emergency fund, but you should take some time to review your current situation. As a rule of thumb: your emergency fund should cover at least three to six months of your total living expenses.
#6: Apply for insurance policies
In addition to starting an emergency fund, one resolution you can adopt is to acquire insurance. Sudden hospitalizations, cases of theft, and accidents can be costly, and having a policy will allow you to handle such situations with more flexibility. Ultimately, these policies help keep you, your family, and your assets safe.
#7: Pay your bills and settle debts
It goes without saying that failing to pay off debts can pose a considerable threat to your financial security. For credit card bills, paying late can result in additional charges or a low credit score. It may be harder to manage regular expenses or save extra money if you have to pay high interest fees, too. Pay your bills before even thinking about making unnecessary expenses. Cutting down on these can also help you clear out debts faster when you prioritize the latter instead of the former.
#8: Manage and review your plans and subscriptions
Take time to tally all your existing subscriptions for apps, streaming platforms, fitness studios, and more. You might be surprised to see how these “small” monthly expenses pile up when looked at together. Pay attention to the lifestyle shifts you’ve taken on, either consciously or unintentionally, and cancel subscriptions where applicable.
For example, your current grind at work has kept you from streaming films and series on Netflix, Amazon Prime Video, and HBO GO. Do you really need all these, then? While you’re at it, check for any free trials you have availed of but have since forgotten. Chances are you’re being continually charged for the subscription triggered after your trial. Take stock and go on an unsubscribing spree.
New Year, New Money Lessons
To make the most out of the year that’s only just begun, try to instill healthier money habits. Budgeting properly, settling debts, and following the tips above ought to allow you to take big steps toward financial wellness—and your 2024 self will definitely thank you.
That said, remember that being more financially conscious doesn't mean you should miss out on the good things in life. If you’re looking to cut costs while improving your online experience, Globe is here to help. For reliable connectivity that’s easy on the pocket, Globe has you covered with affordable prepaid and postpaid plans.