2023 is one month in, and wow, that was fast!
This time of year is perfect for us to revisit the goals we set or resolutions we made and see how we are doing. This is especially important when it comes to our financial goals because investing in ourselves now can reduce stress, improve lifestyle and get us on the path to the Empire we desire. The key is progress not perfection.
Make sure your finances are on track for 2023 with these strategies:
Check your 2022 spending habits: Take inventory of what you spent and where you spent it. Are there any obvious red flags? Understanding your spending habits is critical to getting on track for the new year. A lot of us have very different spending habits these days since we are working from home, but does that mean you are still aligned with your spending plan?
Create your budget and savings goals: After checking your spending habits and calculating your essential expenses, allocate a set amount to savings. A great way to do this is by following the 50/20/30 rule. 50% of your income goes to fixed expenses, such as housing and living expenses. 20% goes to financial priorities, such as savings, debt and retirement. The other 30% is everything else!
Savings: Savings is a healthy habit! Divvy up that 20% of savings into your savings account, emergency fund and 401(k). Automation is the best way to ensure that you keep up with savings. Out of sight, out of mind. And if you cannot contribute 20% - any amount is better than nothing.
Reduce your debt: Now is the perfect time to reel in any unnecessary spending and course correct. Always pay more than the minimums and pay off those higher interest cards first (especially in this high interest environment)!
Organize and discard: Go through your documents and separate what you need from what you can discard. Tax time is around the corner so start a folder with all the pertinent docs needed for your appointment. Throw away any old bills, bank and credit card statements, but don’t forget to shred them. Identity theft is REAL! The process of cleaning up creates an organized space and clear mind.
Another great way to stay on track is by setting realistic goals we can aspire to reach over the course of the year. If we make our goals too broad, we will have trouble following through. Take those big, audacious goals and break them down into digestible bites. For instance, if you want to save more money, give yourself a number on a monthly basis, rather than just saying “I want to save more this year”.
And remember whatever goal you set out to achieve, the one common denominator is the focus on forming a habit. Healthy habits are a foundational element in any successful financial plan.
To tap in to your full potential on your 2023 journey access our Divine Guided Meditation and Financial Habit Assessment here.
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