The holidays are quickly approaching, and they can often be stressful as well as joyful. It can be easy to ignore your financial situation. If you have time and energy for it, what if you updated your money NOW so you could focus more on your other life goals in 2023?
Here are six tips to help put yourself in the best possible position in the new year.
1. Review your Expenses Periodically and Negotiate!
A wonderful routine to establish is to try to do this at the beginning of each season. Start by going over each expense and determining whether you choose to keep the good or service.
Ask yourself, do you really need some of your unused subscriptions? If the answer is no, you might want to prioritize your spending and possibly give up those subscriptions.
Review each expense and make a note of any that might be negotiated.
Does it seem like your internet bill is getting more expensive every year? Asking for the best rate the service provider can give you over the phone is sometimes all it takes to lessen your amount.
It never hurts to inquire about your expenses, and you could be shocked at the extent of your negotiating power!
2. Analyze Your Income
If you have a job, make a note of your current income and all your achievements so that you have the information necessary to support any requests for a raise or bonus when the time comes.
You can do the same for your service rates or product prices if you own a business or are a freelancer. Reflect on the past few years and continue to strive toward your desired income, even if you have had to reduce the price of your services or goods to maintain a regular income.
3. Automate!
We all have a lot on our minds right now, so it's not always at the forefront of our minds to worry about whether we remembered to put money in our savings.
Set up automatic transfers from your checking account to your savings account to eliminate the fuss from the procedure. So that you know you have money in your account and won't overdraw, schedule it for a day after payday.
It might be as little as $10. Save what you can. Automate everything you can afford to do regularly each month.
Making it automatic can ensure that you truly save while helping the habit's effortless development.
4. Review Current Goals and Create New Ones
Setting goals is crucial for monitoring your progress and financial well-being. At the start of each season, spend some time thinking back on your previous objectives.
Have you succeeded with them? Give yourself a pat on the back!
Has anything not changed? That's also okay! That simply implies that you might also need to change the way you manage your finances.
5. Examine Your Retirement Accounts
Monitor your retirement accounts occasionally. We don't advise doing it so frequently because retirement is a marathon, not a sprint.
Confirm that your asset allocation is adequate and verify that your contributions are not too little or too much based on your retirement goal date as well as your short- and medium-term goals.
Confirm that any previous accounts are rolled over to your current account.
Find out what charges are being deducted from your account.
Want to know more about the retirement vehicle that's best for you? Check out this link to learn whether a Roth IRA or 401(k) may be the best fit for you.
6. Organize Your Records!
An essential building block for achieving optimal financial stability is organizing your financial records.
To begin, look through all your financial records and recycle anything unnecessary. It is unnecessary to keep a paper copy of information if it can be quickly accessible elsewhere, such as online banking statements. It's worth maintaining, though, if it's something that's hard to replace or has legal implications.
Selecting a storage system is also important. Use a filing cabinet or hard case storage box to arrange paper copies of financial records. Hanging file folders should be clearly marked with information specific to your financial situation.
Most financial records don't need to be kept in hard copy. By scanning papers and uploading them to a cloud server that can be viewed from any of your devices, you may free up a lot of desk and home office space.
Make a fast reference guide for yourself and any designated individuals who might need to manage your funds in an emergency situation.
If you have comments or questions on this or any financial issues, Tzedek DC's Financial Counselor Maritza Cortez can be reached at mc@tzedekdc.org.