It’s the start of a new year time to make some changes or updates to your personal financial plan! I know it can be hard to get motivated or feel overwhelmed at looking through paperwork, spreadsheets, and budgets but the first of the year is a great time to start with a fresh look!
FACT:
Did you know that the annual inflation rate in the United States has increased from 3.2 percent in 2011 to 8.3 percent in 2022, according to Statista. How To Reduce Your Spending in 2023, According to Money-Saving Experts (newsweek.com)
With this data in mind the following money moves are essential for your healthy financial future.
1.Review your budget!
Take a new look at your expenses to see what has changed over the past year. Looking at each expense over last year can help you know where to reduce spending.
It hit hard when I looked at mine recently and had to trim a few things. Having a clear visual of your money will prepare you for what is ahead.
Armed with YOUR budget information each month try to push YOUR Budget to the next level.
2. Increase your savings
Yes, this is a MUST! In 2022 inflation was at 8.1% per the chart from Newsweek. Continue to find new ways to save to brining in extra income and saving it. It can be hard when things are always going up around you but even if it is just $5 per month it is something. What did grandmom always say, “save for a rainy day”.
3. Look at your retirement account(s]
It is a good practice to review your 401k, 403b, TSP, Roth IRA, traditional IRA, etc. accounts each year to see how things did or if changes needed to be made. Go back out and check a calculator or you financial plan to see where you are at in your journey.
Remember to take the 1% challenge each year by towards your retirement savings Even increasing your retirement savings contributions by 1% can have a powerful impact. This article from Fidelity talks more about the 1% challenge. How to save more money | Fidelity
Remember that personal finance is a PERSONAL journey and to make small steps each day!
