Although many of this year’s resolutions are hard to keep after months of rising prices, 2023 can still be the year you achieve financial fitness.
The key is to understand that big goals start with small changes in your financial habits.
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“As we enter a new year, high inflation continues to impact the wallets of millions of Americans,” said Einat Steklov, co-founder and CEO of the employee finance website platform. Kasable. “Although good financial habits can be difficult to establish, Americans can take small steps to help along the way.”
Get in the habit of tracking what you’ve spent and planning for what you don’t.
The small habit that will have the biggest impact is the practice of accounting for your money – tracking every dollar in and every dollar out. It sounds like a big adjustment, but it’s not necessary – and the return on investment will surely outweigh the time you spend on it.
“Create a budget or spending plan that includes your financial goals, such as building an emergency fund, saving for a down payment on a house, or investing for retirement,” says Laura Adams, MBA, personal finance expert at Finder.com.
The thought of coping with your expenses and debts can be overwhelming, but there are small steps you can take to keep this hugely important new habit going.
“You can follow the 50/30/20 rule, a simple budgeting framework,” Adams said. “You don’t spend more than 50% of your net income on necessities like housing, food, insurance and debt repayment. You limit variable expenses, such as dining out and entertainment, to 30% and save the remaining 20%. »
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Saving a robot habit, not yours
Even the most diligent savers are only humans – and humans get sick, get stressed, get busy, or simply forget to contribute to their savings. But your bank is ready to do it for you regularly and for free without you having to lift a finger.
Accept the offer.
“Another important step is to set up an automatic savings plan,” said Linda Chavez, founder and CEO of Find life insurance for seniors. “Set aside a certain amount of money each month that will go directly into your savings account. This will help you build a safety net and ensure that you are financially prepared for any unexpected expenses or emergencies.
Here too, it’s okay to start small – in the long run, a few dollars a month is infinitely better than zero. Apply the same mindset to saving as you apply to your fitness and exercise resolutions – something is always better than nothing.
Put pen to paper to bring your goals to life
Having ideas, goals, or plans in your head is a great start, but the real magic happens when you put them into action on paper.
“Make sure your goals are written down and posted somewhere you’ll see them all the time,” said Samantha Garcia, CFP, wealth advisor at Halbert Hargrove. “If you write them in January and don’t check them until December, it’s easy to lose sight of them and lose sight of what you’re doing. Writing them down keeps you accountable because now it’s on paper, whether you use pen and paper or computer notes. By printing them out and putting them where you see them, you are more likely to check your goals regularly. You should also add a monthly calendar reminder to check your financial goals. Regular notification during a time when you’re not busy – Sunday morning or the 15th of the month – will help remind you to stay on track.
Team up with a like-minded partner
Changing a habit – financial or otherwise – is always easier when you have someone to lean on when the going gets tough, and it surely will.
“Find a responsible partner,” Garcia said. “Whether it’s a friend or a spouse, it’s really nice to have someone to check on your goals. They should ask things like, ‘How are you doing on this goal? Is there a way to support you? Do you need help with something? Having someone who can ask these questions and not make you feel guilty or punish you, but someone you trust, can keep you on track.
Eliminate temptation from your inbox
Even if you avoid social media and the envy of influencers that trigger so much overspending, the temptation to mindlessly buy is often as close as your inbox.
“The problem with mailing lists is that all those companies you’ve shown interest in or supported before will keep showing you their products and services and you’ll start to feel like you need them,” said Dakota McDaniels, co-founder. and product manager for the investment platform Pluto. “But you don’t, and the perfect remedy for that is to unsubscribe to fight the temptation. It can be hard to stop unnecessary shopping with so much hanging in front of you. streaming could be the change you need to improve your spending habits in 2023.”
Schedule regular visits with a pro
A responsible partner is a great tool for staying on track in your day-to-day life, but by consulting with a financial professional from time to time, you can identify mistakes you didn’t know you were making and adjust your strategy as needed.
“Finally, check in with personal finance experts regularly throughout the year,” Chavez said. “Financial experts can provide valuable advice to help you get the most out of your money and stay on track to achieve your goals. This could involve advice from investment advisers or tax specialists, depending on your situation. A regular check-up with an expert may be the motivation you need to stick to your resolutions and succeed in the New Year. »
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This article originally appeared on GOBankingRates.com: New year, new financial habits: small gestures that will help your finances in 2023