Now that the holidays are over, it's time to start a new year. Want to begin 2023 with a solid financial foundation? The month of January is dedicated to planning and budgeting because a new year calls for a new outlook on money.
Predicting what the new year will bring is not an easy endeavor given the volatility in the stock market and concerns about the economy. However, there are several actions you can do to increase the security of your own finances.
Run a financial inventory
It's time to examine your spending patterns closely. Is your spending out of control? If you do the math, you'll find that millennials claim to spend $478 on "non-essential" items like nights out, new clothes, and other "extras,". And $478 a month, amounts to $5,736 year that might be used to finance an emergency fund, go on vacation, or save for your goals.
You can take a simple financial inventory to gain some understanding of your financial situation and identify areas where you might need to cut back on your spending. Examine your income and make a comparison to your month on month spending. Do you go overboard? At the end of the month, do you still have money? By evaluating your existing financial situation, you'll be prepared to take on the following challenge.
Map out your financial and career goals
Do you plan on a big purchase this year? What about investments? Are you looking into building a business, buying a house, or enrolling for education? A career change can also greatly affect your income. Whatever you want for yourself this year will be the turning point in crafting your budget.
Draft a monthly budget for 2023
A strategy for how you want to spend (and save!) your money going ahead can be made after step 2. Reduce excessive expenditure if you find that you are spending more than you are earning. If you discover that you have extra cash, you might choose to contribute it to an emergency fund. Set up a monthly budget today that is aligned to your financial and career goals.
Take note of the word ‘draft’ as you want to be flexible as of now. A draft is something such as a letter, speech, or report in a form that may have changes made to it. You might never know what changes can occur, but it’s important to create a structure early so that you won’t be left feeling lost in the following months.
Start your tax prep
Although it may feel like you have plenty of time to submit your taxes, starting this annual activity early can be beneficial in a number of ways. Make an appointment with your tax preparer or yourself to get things started. Having a date in the calendar will motivate you to start gathering your paperwork in addition to giving you the freedom to choose the time windows that work best for you. Additionally, it will encourage you to evaluate the most recent adjustments to tax brackets for 2023 and to get any queries ready for your tax advisor.
Invest in your health
You've probably heard the saying "Health is Wealth," and it's true. Don't neglect your health this year. Not just this year, but every year. You must schedule daily exercise, and you must always think about the kind of food you are giving your body. Your physical, mental, and emotional well-being are equally important to the success of your finances and business. A personal health budget is a specific sum of money put aside to support your overall wellbeing and good health.
Buy Items on Deep Discount in January
Going to the store might not be high on your list of priorities because of the cold weather and the exhaustion from post-holiday shopping. However, for those prepared to travel, January can be a fantastic time to purchase goods at a significant discount. Fitness enthusiasts and couch potatoes both may discover discounts on things like televisions and exercise equipment.
Retailers are providing discounts of up to 60% off to persuade motivated customers to buy new yoga mats, hand weights, exercise balls, resistance bands, and other items since they are aware that "getting in shape" tops many people's lists of New Year's plans.
However, you should skip on even thinking about buying a car. Overall, car prices have increased compared to previous years due to the lack of microchips that is delaying production. But when it comes to car costs, January is the month with the lowest annual discounts. So you should definitely wait if you don't really need one.
Fempire Finance