Spending and Saving Strategies for 2023

 Spending and Saving Strategies for 2023

22/08/2023

 - The past few years have upended many perceptions of financial stability. A layoff or career change, inflation never before seen by younger generations and the lingering uncertainty of the pandemic might have thrown off your financial planning.

The new year is a great time to review your strategies for smart spending and saving so you can weather whatever the future has in store.

Financial planning professionals suggest that you start by creating a budget. Online trackers such as Mint.com can help you understand your spending. Also, reviewing your expenses with a CERTIFIED FINANCIAL PLANNER™ professional is a great way to get a handle on spending smart today while saving for tomorrow.

Try these tips for saving and spending in 2023:

Use credit responsibly: Pay off credit cards each month, if possible, to avoid accumulating debt and build good credit.

Set up automatic savings: You can do this through your bank and via your employer’s payroll. Use the new year to take a fresh look at the savings options through your employer, including Health Savings Accounts (HSAs), which can be carried over from one year to the next.

Invest windfalls: Invest any unexpected cash, such as bonuses or tax refunds, and make your money work harder for you. If you find yourself with significant new assets, such as an inheritance, a CFP® professional can help you make the most of your good fortune.

Review your retirement plans: The new year may bring changes such as buying a home, updating a will or navigating a higher tax bracket. A CFP® professional can provide a new year review to keep your retirement plans on track no matter where you are in your working life.

Plan your tax payments: Consider paying estimated taxes throughout the year to avoid a large tax bill in April. Estimated tax payments can be especially helpful for contract workers or freelancers who don’t have taxes taken out of their pay automatically.

Shop smarter: Combat inflation by switching to store brands for some items. Check whether generic medications will work for you and compare prices for different products