5 Financial Goals To Set In 2023
At the start of each year, we find ourselves surrounded by conversations, social media posts, and podcasts focusing on setting goals. However, we’re not here to overwhelm you with goals you should consider across all life aspects. Instead, we want to touch on five achievable goals regarding your finances.
Setting financial resolutions is a great way to stay motivated and make real progress toward achieving our financial goals. So, keep reading to discover five financial goals that you can set and achieve in 2023.
Create a budget:
One of the most important things you can do to achieve financial success is to create a budget. A budget will help you see where your money is going and give you a clear picture of how much you can save and invest each month.
To create a budget, start by listing all of your income sources and all of your expenses. Next, include all your fixed costs, such as rent or mortgage payments, and your variable expenses, such as groceries and entertainment. Once you have a complete list, you can start looking for ways to reduce your expenses or increase your income to save money.
You can also use many free online platforms to track your income and expenses, such as Splitwise.
Budgets are also great tools to utilise to help you:
Pay off debt:
High debt levels can be a significant financial burden. One of your New Year’s resolutions should be to pay off as much debt as possible, starting with high-interest debt like credit card balances. The best way to do this is to create a debt repayment plan. Start by listing all of your debts and their interest rates. Then, prioritise your debts by interest rate and focus on paying off the highest-interest debt first. This will save you the most money in the long run.
Build an emergency fund
Unexpected and unbudgeted expenses can come up anytime and having an emergency fund can provide peace of mind. Aim to save at least three to six months’ worth of living expenses. This will help you cover unexpected costs without relying on credit cards or loans.
To build an emergency fund, you should automate your savings. For example, set up a weekly or monthly transfer from your everyday account to a savings account, and consider using a high-yield savings account to earn more interest on your savings.
Investing your money is a great way to build your financial foundation and grow your wealth over time. There are several ways you can start investing, such as investing in stocks and bonds, real estate, setting up a managed investment account, or investing in yourself to further your education in a sector you’re passionate about.
Investing can be intimidating when you’re starting out, but plenty of online tools and resources help you get started. Remember that it’s essential to diversify your investments and focus on the long-term to maximise your return.
Investing could also look like putting a small amount of money aside each week for lottery draws. Yes, the odds aren’t in your favour, but at the end of the day, someone has to win, and why can’t it be you? Lottery entries with The Lottery Office require a minimum amount of AUD $3.70. So if your budget allows, why not give it a shot?
Review and adjust your insurance coverage
Reviewing your insurance coverage regularly and ensuring you have enough coverage to protect yourself and your family in an emergency is essential. You should review your insurance coverage every year and make sure that your coverage meets your current needs. You should also check that your insurance policy is up-to-date and you’re getting the best possible rates. Then, you can compare different insurance policies and negotiate with your insurance company.
When setting your New Year’s resolutions, it is essential to set achievable goals. Starting early and reviewing your progress regularly will give you enough time to achieve your goals. In addition, many apps and tools can help you budget, track your spending, and even automate your savings. These tools can make your goals more achievable and even turn them into habits.
Remember that change takes time, and it’s essential to be consistent and motivated to keep pushing forward. Setting financial resolutions this New Year can help you become more disciplined with your money, improve your financial literacy, and create a secure foundation for the future. Good luck!
This content is not intended as professional advice and should not be relied upon in that regard.
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