Do you want to set yourself up to thrive in 2023 with a solid plan for your finances that will ensure you coast into 2024 proud of how far you’ve come?
At First Financial, we are big believers in the power of planning to see financial goals become reality, regardless of the ups and downs of the overall financial landscape.
So how can you plan for a financially healthy 2023?
There’s still time…
Get your financial house in order
In 2023 we can expect inflation and higher interest rates to stick around for a while.
If you haven’t already made some budget adjustments to account for higher prices, now is the time.
Start the year by overhauling your budget.
Assess your average monthly income as well as your fixed and variable expenses and determine your financial priorities for 2023, keeping in mind that high inflation will force many households to allocate more for essentials.
Double check you have adequate funds set aside for a rainy day in your designated emergency fund.
A savings fallback plan is especially necessary in times of economic slowdown.
If you’re a reformed spender, consider some of the tips we have previously discussed about boosting your savings.
If you need some guidance to prepare your budget, set time aside with your financial adviser to go over the ins and outs of your finances.
Tackle your debt
As inflationary pressures mount, so too does credit card debt, otherwise known as ‘bad debt’ in the financial world.
Reserve Bank of Australia data released in November showed that Australian households paid down credit debt during the pandemic to its lowest levels since 2003.
However, with cost of living increases and the holiday season encouraging spending, many may turn to the plastic fantastic without thinking about the consequences.
Talk to your financial adviser about consolidating your debts to ease any debt stress coming into the new year.
Plot clever career moves
Times of economic slowdown can be precarious when it comes to making career decisions, but many companies pull back on hiring as costs rise and uncertainty mounts in the overall financial market.
If you’ve been on the precipice of making a bold career move, consider how you can service your base-level expenses safely to weather any tumultuous period.
In times like these, the “don’t give up your day job” premise usually applies, but if you’re looking for a change, consider asking your current employer for opportunities within the company or remote working options, perhaps.
Consider taking advantage of employee wellness programs to support any peripheral New Year’s resolutions without digging deep into your own pocket for expensive subscriptions and fees.
Invest smart
There is no perfect time to invest, but there are investment opportunities that are better suited to you and your financial situation than others.
Consider investing in ways that matter to you, as well as align with your financial goals for the future.
At First Financial, we use a unique process and philosophy for investing that we developed and have used for more than 15 years.
We know that investment is not about luck, and investing should be a long-term strategy, one you monitor closely and regularly.
Investing is certainly not a ‘set and forget’ process. Successful investors develop a plan, manage the process and monitor their choices.
Contact our team of financial planners today.
