New year, new goals! As we near the close of another busy year, it’s time to reflect and look forward to a new beginning in the following year. Common resolutions include staying both mentally and physically healthy, eating properly, and traveling.
Usually, difficult-to-attain financial goals that could significantly affect the year are not included on the list.
Start 2023 off right by including some financial goals in your New Year’s resolutions. Do you have no idea where to begin? Here are some New Year’s resolutions to help you have a financially successful 2023.
Launch a Side Business
When you have the stability of a day job, starting a side business is a terrific way to increase your income, find your passion, and progress toward being your own boss.
As you take risks to test the feasibility of your side business, think of your day job as a safety net. There are many side businesses available nowadays that you can start right away. Anything from launching a blog to listing vacant homes or rooms on Airbnb.
To identify a source of additional money that is feasible and practical for you, consider your needs and current talents instead of jumping into the first thing you come across. Finding something you enjoy doing or that you are skilled at is a plus.
It won’t be easy because you also need to manage your full-time commitments while investing time in your side business. Start by:
- Evaluating all of your existing obligations and determining how much time you can devote to your side job.
- Make a list of the areas of your life that you might have to give up, then set up a system of encouraging reminders and habits to help you push through the tough times.
Invest Wisely
Many people are apprehensive about investing. Anyone who already finds themselves in a difficult financial situation or who has a lot of debt to pay off will find it particularly overwhelming.
First of all, it might be challenging to choose the appropriate investments for your portfolio because there are so many different sorts to take into account. You can consider stocks, bonds, cryptocurrencies, exchange-traded funds (ETFs), and more. Some are appropriate for novices, whilst others could need more expertise.
You should take into account the varying levels of risk and return associated with each type of investment before choosing an investment portfolio that is appropriate for your objectives. It will be helpful to understand the benefits of dollar-cost averaging (DCA), an investment technique that divides the total amount to be put into a target asset at regular intervals to lessen the impact of fluctuations on the overall purchase.
It is advised to get professional advice before beginning to invest and to trade or invest within your means.
Clear Your Debt
Consolidating your credit card debt onto a balance transfer credit card will help you pay off your debt faster while also saving you money on interest payments.
To make sure you never fall behind on these payments, set aside money from your budget for extra responsibilities like student loans, vehicle loans, or any debts for real estate. Additionally, refrain from opening up a new debt outlet until all of your current debt has been paid in full because doing so will only worsen your financial condition.
The objective is to get rid of all of your debt, or at least substantially reduce it so that you have more control over how much you owe.
Create a Budget
Having a financial plan is crucial since a proper budget will decide your financial performance for the entire year. To get a full picture, analyze your income, expenses, investments, as well as your past spending patterns.
You may stay on top of your monthly spending with pen and paper, but if you don’t want to get bogged down in statistics, consider hiring a personal financial advisor from Savvy Financials.
Determine How Much You Want to Save
Establish clear and attainable goals to prevent overspending. First, choose a goal, such as putting money aside for a trip or a house deposit. After that, make a timetable and checkpoints for yourself to reach your objective. Set a monthly goal for yourself once you’ve gotten the hang of it.
Next, make sure you’re using the right tools for the job. If you want to save money for longer than five years, you can consider mutual funds. But if you want to earn more interest on your monthly savings, you can decide to open a high-yield savings account.
Learn About Finances and Money
Building long-term wealth requires knowledge and comprehension of everything related to money. Make it a monthly objective to learn additional information on a specific topic related to financial topics.
Start by learning the fundamentals of personal finance, then as your knowledge grows, move on to investing and stock markets. You can get professional financial tips and advice specifically tailored to your financial capabilities and goals when you work with one of our financial advisors from Savvy Financials.
Plan Your Retirement
Making your money work for you can be accomplished by setting a long-term financial objective, such as organizing your retirement plans. This will keep you on target. You must first create the financial cushion that will support it to have a happy, secure, and enjoyable retirement.
Analyzing your retirement objectives and the amount of time you have to achieve them is the first step in retirement planning. Then you should look into the several retirement account options that can help you raise money for your future. Think about investing your savings to help it grow and help you reach your objectives faster.
Give to a Cause
Saving money isn’t the only aspect of good financial resolutions. Committing to donating to a good cause in 2023 is a wonderful way to share optimism and make a significant impact. Giving can also enable higher-rate taxpayers to reduce their tax burden.
Take the time to explore relevant charities that are near to your heart and ensure that you are giving to trustworthy organizations. Limit how the company uses your personal information to further protect yourself.
Giving.sg and Unicef are good examples because they send out newsletters that inform donors about how their gifts are spent.
Takeaway
Making financial resolutions is a fantastic way to get started with improving your finances, but the next step is to do something about it.
It’s important to remember that you don’t have to do everything on this list at once. With these objectives serving as a checklist, you can improve your financial situation by taking little steps toward your financial goals in the next year.
With a financial advisor’s help, you can make better decisions about your money and get a handle on your spending. Savvy Financials is here to help you achieve your financial goals. Our professional financial advisors will help you determine what type of investment vehicles might be right for you, as well as teach you how to make the most of them. We will help keep your portfolio on track so that it performs in line with its best potential. Contact us today through our website to get expert advice!