5 Smart Financial Moves to Make Before 2023

5 Smart Financial Moves to Make Before 2023

With the start of a new year, most people begin making resolutions, whether it’s to lose weight, learn a new language, or travel to a new destination. But have you considered setting financial goals for the year ahead? It’s a smart move to ensure financial success in 2023 and beyond. In this article, we will discuss 5 smart financial moves that you should make before 2023.

1. Pay Off High-Interest Debt

One of the smartest financial moves you can make before 2023 is paying off high-interest debt. High-interest debt can be a significant burden on your finances, as it drains money away from the items you need or want. Make a plan to pay off high-interest debt as soon as possible. Start by prioritizing the highest interest rate debts, such as credit card balances, before moving on to other loans.

2. Build Up Your Emergency Fund

Many people did a great job of building up their emergency funds during the Covid-19 pandemic. However, if you’re not one of those people, or you had to take money out of your emergency fund this year, now is the time to start building it back up again. Aim to have an emergency fund with at least three to six months of living expenses. This will give you peace of mind at a time when things are still uncertain.

3. Review and Update Your Beneficiary Designations

When was the last time you reviewed your beneficiary designations? If it’s been a while, it’s time to take a look. Beneficiary designations on financial accounts and assets dictate where those assets go upon your passing. Ensure that your accounts are updated with the correct beneficiaries, and review them regularly to ensure that they are current and reflect your wishes.

4. Invest in Your Retirement

Are you investing enough in your retirement? According to many financial experts, you should aim to save at least 10% to 15% percent of your income for retirement. If you’re not there yet, make it a priority to increase your retirement savings in the year ahead. Take a look at your retirement account contributions and increase your contributions to reach your goals.

5. Review Your Insurance Coverage

Another smart move to make before 2023 is reviewing your insurance coverage. Insurance policies are often overlooked or forgotten but can have a significant impact on your finances should you need to utilize them. Check your coverage amounts for health, disability, life, and home/auto insurance to ensure that you are adequately covered. Consider bundling multiple policies to save money.

Conclusion

In conclusion, setting smart financial goals for the year ahead can help you achieve financial success in 2023 and beyond. Paying off high-interest debt, building up your emergency fund, reviewing and updating your beneficiary designations, investing in your retirement, and reviewing your insurance coverage are all smart financial moves to make before 2023. By following these simple steps, you can take charge of your finances and set yourself up for a bright financial future.