With 2022 coming to an end and the new year just around the corner, it’s the perfect time to start setting some financial goals for the new year. We know that the past two years have been extremely challenging for so many people. Firstly impacted by the back end of the Covid-19 global pandemic. Then, over the last year, the significant increase in the cost of living with huge rises in energy and fuel prices plus the highest levels of inflation in decades. It is important, now more than ever, to review and reset your personal finances and create new financial resolutions for 2023.
If you’re eager to start your journey towards financial freedom, here are a few tips that can help build the foundation for achieving your financial new year’s resolution this upcoming year.
Asses your financial circumstances
Before you can start to set achievable financial targets, it is essential to be aware of your current situation. Carefully examine and assess both the positive and negative aspects of your financial fitness such as savings, debts, and investments; this extensive understanding will allow you to establish concrete objectives for the upcoming year.
Start to budget your personal finance
As the new year approaches, it’s an ideal time to set your finances straight. Unfortunately, many people lack financial literacy and don’t know where to even begin when it comes to developing a budget.
We understand that creating a budget can be intimidating at first glance – but we’re here for you! Our free online budgeting tool serves as the perfect resource for setting up your own personal budget and monitoring your spending habits so you can reach all of your financial aims in 2023.
Reduce your debt
If you want to take charge of your finances, reducing debts such as loans and credit card debt should be a top priority. By dedicating your efforts to paying off what you owe, it’ll decrease the amount of interest fees and free up funds that can be put towards other expenses.
The feeling of being financially-free is incomparable and having the financial freedom to do whatever you desire is something that everyone should experience. If you feel like your debt load has become too much for you to handle, don’t hesitate in reaching out to Become Debt Free for assistance without judgment or criticism.
Start saving for financial success
Establishing and consistently contributing to a high yield savings account is essential for your financial health. Generally, monetary advisors recommend setting aside at least 10% of your salary each month, but if this figure feels too ambitious start with what you can easily manage. Set yourself an attainable goal and remain consistent; over time consider incrementally increasing the amount as it becomes more realistic for you.
Although it may not appear to be a lot, this money will quickly accumulate. If you are facing difficulty finding ways to save money, then perhaps consider reducing some of your spending so that the effort pays off in due course as you grow your savings and plan for the future.
Create an emergency fund
If you don’t yet have any emergency funds, now is the time to start building one up so that if a sudden financial crisis occurs, there’s no need for you to accrue debt. In order to be prepared for any eventuality, your savings should hold funds to cover expenses for at least 2 to 3 months.
Though it may take some effort and dedication on your part in the short-term, having this safety net will grant invaluable peace of mind throughout all aspects of life – which more than makes up for any temporary inconvenience!
Review your credit report
A critical part of managing your credit is ensuring that all information associated with it remains accurate, and this necessitates regularly reviewing your credit report and also monitoring your credit score. There are three major reference agencies providing these services: Equifax, Experian, and TransUnion (formerly known as Callcredit). All three can be viewed using free accounts with Clear Score, Totally Money and via the Money Saving Expert Credit Club.
To ensure you’re staying ahead of any discrepancies or issues arising from identity theft or other factors beyond your control, make sure to review each agency’s report at least once a year.
Need further guidance on dealing with unmanageable debts?
Are you already struggling with debts that have become unmanageable? Please contact us at Become Debt Free today on 0113 237 9503 or complete the online form. One of our friendly advisors will discuss your situation and provide advice on what debt solution options are available to you.
