00187-header-bothbrands

New Year’s Financial Planning Tips

December 13, 2022 by Spectrum Credit Union
 

As the year comes to a close, now is the perfect time to look ahead.

By spending a few hours reviewing your finances and developing a plan to take care of your money (and yourself), you’ll be in a good position to set attainable goals and make 2023 your best year yet.

Even during the busy holiday season, you can still set yourself up for success with these steps:

Conduct a financial review

If you don’t have a budget — or your current budget isn’t working for you — consider spending some time putting one together. Budgets don’t need to be complicated. A simple plan for how to manage your monthly expenses (and keep your discretionary spending under control) can help you stay on track to reach your financial goals.

Beyond a budget, it is also a good idea to review your biggest costs. Many experts recommend reviewing your insurance plans once a year to make sure you’re still getting the best deal. You should also review retirement and investment accounts to see where you stand.

Trim your expenses 

Inflation hit hard in 2022, and many people felt the pinch on practically everything they bought. One way you can fight back against rising prices is to review your current spending habits.

Most of us have at least a few things we pay for but don’t really get enough use out of. Canceling subscription services, dropping that gym membership you never use or even cutting the cable cord can help you free up more money in your budget.

However, to keep yourself from relocating those funds to something else you don’t need, consider setting up an automatic monthly withdrawal to your savings account so you can set it aside for future goals.

Set financial goals

A new year is the ideal time to take stock of what you want the next year — and beyond—to look like. Spend some time evaluating your financial goals.

Consider setting a smaller, attainable financial goal to work toward in 2023 as well as larger financial milestones you want to reach in the future. Having attainable goals in place and working toward them over time will help keep you motivated.

Boost your savings

The Federal Reserve has been raising interest rates in an attempt to control inflation — but that isn’t all bad news. Typically, rate hikes translate into higher interest rates on savings accounts, making this a perfect time to save as much as possible.

This year, consider setting a goal to maximize your savings. If you don’t have an emergency fund with at least three months’ worth of expenses covered, start there. You may also want to consider a high-yield account — like the MarketEdge Money Market Savings account — to earn even higher rates on funds.

Set limits on financial news

Finally, don’t forget to prioritize your own self-care. In uncertain financial markets, the 24-hour news cycle can take a toll on your mental health. Feeling burned out can make it difficult for us to prioritize our own financial needs and reach our financial goals.

Don’t feel like you have to stay glued to your phone in your free time, doomscrolling for bad economic news. Setting limits on what (and how much) content you consume can help you stay calm no matter what happens next.

Helping you plan

Your credit union is here to help you make 2023 your best financial year yet — even during these uncertain economic times. This month, we’ve partnered with Balance to help our members navigate all their money milestones no matter the market cycle. Check out the free “Planning for Money Milestones” webinar to get the tips and advice you need. 

Tags

Ready to become a member? Let’s get started.

If you’re eligible for membership, we’re ready to hear from you. Not sure if you’re eligible? You can check if you qualify here.

Why join Spectrum Credit Union? Learn more.

From everyday finance to life’s big money moments, it’s better when you belong.