End of The Year Financial Planning

We spend so much time and money during the holiday season that the last thing we want to do is check our bank accounts and hope we aren’t in the red. It’s time to bite the bullet and start to reassemble our financials for the upcoming year in hopes to avoid this exact feeling next year.

To help get you started, here are four ways to financially plan for a smooth 2023.

1.     Reevaluate your budget

By reevaluating your budget, you dissect each expense to see where you can save money. Some things to be attentive to are adjusting your rent or mortgage costs, unsubscribe from any subscriptions you may have forgotten about, average out your monthly gas cost, or rework your limit of gas station snacks. It all adds up!

2.     Pay off Debt

Plan to pay off your bad debt. Examples include credit card debt, medical debt, tax debt, a car loan, and a pay day loan. Debt only weighs you and your credit score down so it’s time to take care of it. Once a plan is in place to pay off your debt and incorporated in your budget, live by it.

3.     Plan your Emergency Fund and for Large Expenses

Planning for an upcoming large expense or an unknown future is one of the smartest things you can do to avoid financial heartache. As a rule of thumb, you want to have around 5 months of living expenses saved up to be your emergency fund.

4.     Set a New Financial Goal

It’s important to set goals in general, but a financial goal will specifically help you either save money or cut down on the debt burden that many Americans face. Start by writing it down in a SMART way. Make it specific, measurable, achievable, and relevant!

The end of the year is symbolically a final wrap-up for so many things – including your finances. These four steps to a better financial year can be done at any time, but why not before the new year for a fresh start. 

Help yourself out by taking a minute to adjust your budget. Because finances can change from time-to-time, try to keep up with the changes so you don’t have to play catch up. It’s important to take ownership of your debt and develop a plan to pay it off. Not only will that help your credit score, but your wellbeing as well. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material contains general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about the specific insurance needs or situations, contact your insurance agent.