Published on 25, May 2023

Establishing financial objectives in 2023 and beyond

It's a good idea to set up some new, better financial habits or change old ones a few months into the new year. Little adjustments to money may have a significant effect. Here are some suggestions that might pay off in the long run when you think about what you want to accomplish in 2023.

Pay yourself first

If you don't already put a small amount of money aside each month, you are passing up a significant chance to accumulate savings that may be used in times of need. A sudden cost like a house or automobile repair or an emergency medical situation may severely mess with your budget.

Using direct deposit and automated transfers that place a portion of your paycheck into a different account you never see is a terrific method to increase your savings without missing the money. Savings will mount up rapidly if they are out of sight and out of mind. You may quickly and simply create secondary savings accounts at a credit union like Solarity, all of which are cost-free, and identify each one with the goal you're pursuing. Wouldn't it be lovely to watch the money grow in the account designated only for your ideal trip in 2023?

Plan out expensive goods

It's crucial to save money both now and in the future for significant costs, both anticipated and unforeseen. Start putting money aside into your savings or money market account with each paycheck if the expense is more urgent. Consider a certificate, which normally offers greater rates than a savings account, if the major cost is many years away.

Reduce your debt

The ability to pay off debt changes everything. Aim to pay off your credit card debt first, as it's the most expensive. Over time, carrying a balance might mount up significantly. Consider using a home equity line of credit (HELOC) to consolidate your debt if it is on the higher side. You might save money over time by repaying the debt on schedule and at a reduced interest rate. If you have debt, whether it be from student loans or something else, start with the highest interest rates and set a reasonable deadline for paying it off. It's good to have your sights set on the goal.

Boost your credit rating

Having good credit is absolutely essential for financial independence. When lenders are determining whether or not to give you money, it's a crucial factor to take into account. Gaining or keeping a high credit score is crucial for improving your ability to make sound financial decisions and increasing your wealth. Keeping your older credit lines open, even if you seldom use them, is one of the best ways to achieve this.

Review the insurance alternatives you have

Several professionals in the financial sector advise consumers to shop for insurance at least once each year, with a focus on house and vehicle policies. Do you have the protection you require? Are you overspending, or are there any potential cost savings? The way of life changes. Maybe you're driving much less and working more from home. Be sure the vehicle insurance coverage you have corresponds to your lifestyle. Be sure that any renovations you've made and/or value increases are covered by your home’s policy (i.e. replacement cost).

Invest in your future

Where do you see yourself in five, 10, 20 or 30 years? You may use one of the many convenient retirement calculators to determine how much money you'll need for your planned retirement lifestyle. One important strategy for increasing your wealth is investing. And don't forget to consider your real estate investment in the future. How well is your existing mortgage serving your needs? Is renegotiating your mortgage a wise move for you? Also, how much house can you currently afford if you're planning to buy one? Solarity’s expert Home Loan Guides can work with you to help you understand your alternatives (with no obligation to apply).

Keep your loved ones safe

One of the finest presents you can offer your loved ones is to make sure your estate and will are in order. It can be a very tough duty for your family to take on, on top of grieving their loss, if there is no clear plan for what will happen to your assets in the case of your dying. The first step is as simple as making sure your beneficiaries and will are current.