The past few years have made people a conscious a their finances. So it is no surprise that more people are looking for ways to improve their finances in 2023
A readiness to improve your finances is the first step. To have lasting results, will require consistency and dedication.
Here are 5 easy steps that you can take to improve your finances in 2023.
1.Set financial goals and map out a plan.
Imagine you decide to meet your friends to hang out. You reach for the car keys, get in the car and start the car. The thing is you do not know how to drive and you do not have directions to where you are going.
That is what not having a financial plan looks like.
Setting goals is important because it helps you map out a plan. A plan identifies where you are on your financial journey and what steps your need to take to get to the next level.
A plan keeps you focused and fuels your ambition.
Your financial plan to improve your finances will propel you forward. There are days when you will not feel like working on your goals, or your focus starts to shift. When you have a written plan, it acts as a visual reminder to keep you pushing forward and serve as motivation on those days.
Your plan converts your dreams into reality.
2. Budget.
A budget is a foundation for building wealth.
A budget helps you reach your financial goals. Helps your track your money and protects the money you already have saved up.
A budget gives you a plan on how to spend your money . With a budget, you are able to tell your money what youwant it to do for you. YOU are in charge!
It is important that your create a budget before you spend your money.
3. Pay down debt.
Paying down debt frees up money that:
Allows you to do the things you enjoy, love and want to do. Some of these might include; spending time with family, taking vacations, or just working fewer hours.
Increases your earning potential. Paying off debt frees up your income allowing you more money to live on.
Reduces your stress. You will have less to worry about and more money to spend doing the things you love.
4. Have your fully-funded emergency fund in place .
An emergency fund puts a road block between you and a financial disaster.
It prevents you from going into debt. With an emergency fund in place, unforeseen disasters become glitches not a crisis.
Consider putting this money into an online savings account or money market account, where you can access it, without penalty, if and when you need it.
An emergency fund protects your financial plan.
5. Invest.
Before investing, get financially educated. At least know enough to ask the right questions about your investments. This can be done through reading personal finance books, magazines or blogs or by , taking personal finance courses like the Beyond Financial Reset Personal Finance Course. Personal Financial Education is a lifelong process and things are constantly changing so you want to stay in the know.
Lastly, plan to save at least 15% of your gross household income in retirement accounts.
Remember to keep your financial plan simple and easy.
Small, consistent changes, is all it will take for you to get to you where you want on your financial map.