Four tips for setting up your finances for 2023
With 2023 on the horizon, it’s time to review your finances and set yourself up for a good year. Here are four areas to focus on.
Build Your Fund
A negative employment events, such as job loss or reduction in pay, can have a negative impact on your emergency fund. If your fund was depleted during the past year, make it a priority for 2023. As USA Today suggests, start as small as you need to and build from there. Your goal, as you likely know, is to have enough saved to cover six months of expenses.
Over the course of a year, your budget can get out of hand. Now is a good time to review it and tighten things up. Look over your budget and consider making cuts to your spending. There are likely a few places that your spending went overboard during the year. Use the extra cash to build that emergency fund.
Address Your Loans
Look into your options for paying off student loans. If you have private loans and you’re having difficulty, reach out to your lender to ask about options.
If you haven’t been hitting your employer-based retirement match, make sure you get there this year. Make a plan to slowly contribute more to the 401(k) each month until you are stashing away enough to get that free money.
Article distributed in partnership with SavvyMoney with reporting by Chris O’Shea