New Year, New Budget: Top tips for managing finances in 2023
- Begin with a budget
- Work on your debts
- Consider your investment options
- Stop relying on your credit card
- Recap: Managing your finances in 2023
With the arrival of 2023, now is the perfect time to take proactive steps to improve the way that you manage your finances. Thankfully, there are lots of simple things you can do to manage your money better, and you don’t need to hire an expensive financial advisor to help you get started. So, with that in mind, here are some of our top tips for managing your finances in 2023.
Begin with a budget
Putting together a budget for your annual income and expenditure is the foundation upon which your financial management is built. Your budget doesn’t have to be a complex spreadsheet with detailed formulas and fancy headings. All you need to do is input your estimated income and expenses for each month of the year and make sure that you make provisions for savings and investments to grow your wealth like a pro. If you’re looking for some inspiration to help you get started, You Need A Budget is one of the best budgeting apps in the business.
Work on your debts
Whether you have a credit card, student loan, or personal loan debt, getting out of it as soon as you can will help you to build wealth in the future. The reason for this is that debts come with interest payments, which add up and increase your monthly repayments. So, at the start of 2023, put together a debt repayment plan that enables you to eat away at the amount of money you owe this year.
Consider your investment options
While most of us understand the need to save money for a rainy day, some people think that investing money is only for wealthy people with Wall Street contacts! But in reality, everyone can invest, and there are so many ways to get started. In the UK, every taxpayer has a tax-free investment opportunity – known as an ISA – and it’s a great way to get started with investing some money for your future. You can set up cash and stocks & shares ISAs, and they’re excellent for growing your wealth. Check out this super helpful piece from Money Saving Expert to decide on the best ISA for you.
Stop relying on your credit card
Lots of us rely on our credit cards for everyday purchases, be it the weekly groceries or a full tank of fuel at the petrol station. But the problem with credit cards is that many people end up buying items and paying for things they can’t actually afford, causing them long-term financial issues. So, while you don’t necessarily have to cut up your credit cards, it makes sense to remove them from your purse or wallet, so you aren’t tempted to use them on a daily basis. If you’re planning a relatively big purchase and you need to spread the cost of it over a longer period of time, an unsecured personal loan is a good alternative to a credit card and is well worth considering.
Recap: Managing your finances in 2023
As you can see, the above tips can be instituted by anyone and improving the way that you manage your money in 2023 doesn’t need to be difficult. So, at the start of this new year, resolve to plan your finances accordingly and take progressive steps to building wealth and getting out of debt this year. Visit our guides page to find out more about managing your personal finance for the new year.
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