Financial Resolutions for the New Year
As the new year is underway, creating financial resolutions are great ways to plan and improve one’s wellbeing for the future. No matter how big or small the ambitions may be, setting realistic and achievable goals is a key to long-term success. Here are some helpful ideas and tips to improve your financial future in 2023:
Create and Stick to a Budget
Creating a budget is a great start when setting up your financial resolutions for the New Year. With a detailed budget, you can visualize where you are spending, allowing you a better understanding of the lifestyle you can afford and where you may need to cut back. You will also be able to determine how much money you need to cover necessary expenses, giving you an opportunity to learn what you have left for savings and discretionary spending. Once you create a budget, it can be tricky to stick with that plan, but don’t give up! Making small sacrifices in the in short-term keep you on track for your long-term financial goals.
Increase Your Retirement Savings
To help ensure a successful retirement, it’s wise to save for retirement early and often. If you have access to a 401(k), 403(b), or 457 plan through your work, consider instructing your employer to withhold enough through salary deferrals to ensure that you reach the maximum limit each year. Remember that you should only save amounts that you can realistically afford, as contributing more to your retirement than you can afford may result in having to incur debts to cover everyday expenses. Starting with small contributions first is better than not starting at all. With each New Year, try to increase your contributions by 1%. It can be helpful to include your retirement savings into your regular budget. And if you haven’t started a retirement account yet, make it a goal to start one in 2023!
Update/Protect Your Estate
Another idea when creating financial resolutions is updating and/or protecting your estate. An estate plan may seem like an overwhelming process to plan, but there are simple steps individuals are recommended to take to make sure their assets are secure, and your loved ones are protected. First, start by verifying that your beneficiaries are set up correctly on all of your financial accounts. We recommend reviewing these each year to make sure you don’t need to change any beneficiaries. If you have a will, it’s wise to review and keep that information up-to-date and consistent as well. Additionally, it’s encouraged to work with an experienced lawyer or estate planning attorney when updating or preparing your will.
At Sgroi Financial, our advisors are highly knowledgeable in budgeting, estate planning, and setting up individuals for their retirement. We work with our clients to ensure that their goals, whether short or long-term, are accomplished in a timely manner that will realistically work to better their financial wellbeing.