Resolutions are a of new year tradition. We resolve to get fit, to drink less, perhaps walk instead of getting the car out and more. It is also traditional to break them again before the first week of the new year is out.
But 2023 could be financially challenging. At Continuum we are looking at some financial resolutions you should keep, and which might even be the key to making your 2023 a more prosperous new year.
1. Resolve to track your spending
Where does all the money go each month? You know about the big regular bills, your mortgage, council tax, car payments and insurance, but for most people, budgets never quite seem to add up. With cash becoming a rarity, it is easier to see why. All the little things, the daily coffee, the bottle of wine on a Friday night, even the daily newspaper, are listed on your online statement.
So for 2023, it is easy to see where the money is going, and easier to resolve to plug those that drain on your wealth.
2. Resolve to stick to a budget
Having a budget has become more important than ever. Cash helped keep our spending under control because we could watch it run out, which it always did far too fast. Now that we use cards and phones instead of cash, an empty pocket no longer acts as a reminder that we have spent too much.
Resolving to stick to a set budget can be vital, and could even mean that we might even have a little cash left over at the end of each month.
Make sure you download the Continuum budget planner to help you keep track of all your finances.
3. Resolve to deal with debt
That cash surplus is vital, because one of the most important things to avoid in 2023 might well be debt. Thanks to credit cards and easy payment options, debt is easy to get into, but hard to get out of. Remember, debt goes on costing money because it means interest payments each month.
Your cash surplus could help pay off your debts. Resolve to pay of as much as you can, starting with any credit card balance you are saddled with.
4. Resolve to start saving
Getting out of debt actually feels as though you have had a cash bonus each month, because you no longer have repayments to make or interest to cover.
It may be tempting to splash out, but if you resolve to save instead of spend, it could be the first step towards real financial freedom.
The traditional home for spare cash is the savings account. These have been out of fashion for years, because they paid hardly any interest. In 2023, interest rates are on the up, making a savings account much more rewarding.
5. Resolve to become an investor
Investing is not just for people with cash to spare. It is the reason why they have cash to spare.
So once you have built up your emergency fund, resolve to become an investor. It is easier than you might think – regular investment in a managed investment fund is no more difficult that making regular payments into a savings account. There are many different kinds of investment. A Stocks and Shares ISA fund could help you get the stock market working for you in 2023 and protect the money you make from the taxman in a tax efficient manner..
Resolve to get some expert advice on the best way to start becoming an investor.
6. Resolve to make the most of your pension
Your pension is a special kind of investment, and thanks to the tax relief provided by the government, it could be the most rewarding you ever make. Resolving to make some extra contributions into your pension fund in 2023 could make a big difference to your wealth in the years to come.
7. Resolve to call us at Continuum
2023 might not be an easy year for many people’s finances. This is why getting expert help may be essential. So your most important financial resolution could be very simple.
Resolve to call us for the expert help you need. And let us wish you a prosperous New Year.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable savings or investment strategy, you should seek independent financial advice before embarking on any course of action.
The value of investments can fall as well as rise and you may get back less than you invested.
A pension is a long term investment, the fund value can go down as well as up and this can impact the level of pension benefits available.
Equity based investments do not afford the same capital security as deposit accounts.
The Financial Conduct Authority does not regulate deposit accounts or taxation advice.