At this time of year, New Year’s resolutions are usually top of mind, some will stick, and some won’t. Try not to beat yourself up about it; after all, there is always next year. However, your personal 2023 budget is one area where you should keep your resolutions from slipping. While it’s still true that there’s also next year when it comes to your financial goals, ignoring it has some real consequences that equal more work and less money. So here are seven steps you should take to start your 2023 budget off the right way.
Review your financial plan and your 2023 budget
If you created a financial plan last year, get it out and review it. If you met your goals, congratulations; now it is time to start thinking about all the amazing things you will accomplish in 2023.
If you fell short, that’s okay. Take a deep breath and be honest about why. You may find that many things were out of your control. However, if the problem was poor planning or unnecessary overspending, take those lessons into the new year with a renewed sense of determination.
Tie up your expenses for the last year
If you have any business or personal claims to make, find your receipts and get them submitted as soon as possible. Tying up loose ends while they’re still fresh in your mind is beneficial because it reduces the likelihood of something going missing. In some cases, it also means you’ll get a reimbursement to help get you started in 2023.
Get a jump start on your taxes
Tax submission dates vary depending on location. However, it’s always a good idea to get organised for the year as early as possible. Review and gather your documents, and follow up with anyone who still needs to send you any.
Take stock of your credit cards
With the holidays now behind you, it is a great time to review your credit card statements. Hopefully, your brilliant budgeting skills kept you on track while buying gifts, but if they didn’t, it’s time to figure that out.
Determine what you owe and create a payment plan so nothing gets out of hand. Additionally, review your interest rates on each card and pay the card with the highest rate as soon as possible.
Set new savings goals
If your savings account isn’t as big as you hoped, decide exactly how you plan on saving in 2023. Get rid of whatever tactics didn’t work last year, or adjust them, so they do.
Start small and be specific. Most bank accounts will let you make automatic contributions when you make purchases. It’s better than trying to do too much and ending up with a budget that simply doesn’t work.
Consider your career goals
If you have a significant job change planned this year, determine how your budget will be impacted. Additionally, if you need to bring in more to keep up with your lifestyle, brainstorm how you will achieve that. It may mean adopting a side hustle, switching careers, or negotiating your salary at your current job.
Plan for any significant changes
Generally speaking, we often know if there is a significant life event, plan to move, or expensive purchase in the short term. So, keep track of what’s going on in your life this year and what it means for your 2023 budget. Then, take it a step further and get specific with how you plan to pay for it.
Final thoughts
It’s easy to head into each new year thinking it will be different, you’ll earn more money, and things will be easier. However, it’s entirely different to consider exactly how that will happen. Take the time to analyse your financial situation, make new goals, develop a distinct plan, and reap the benefits in 2023.
If you have any questions, feel free to Join the conversation…