5 Tips to Strengthen Your Finances and Create Financial Goals for 2023

With 2023 now underway, we know people are beginning to work toward their new year’s resolutions. And like many resolutions, it can be tough to change habits and make progress toward long-term goals. But if you’re looking to improve your finances in 2023, here are five tips to help you stay on track for a financially healthy year:

• New year, new budget. Compare your monthly expenses against your take-home pay and look for areas where you can cut back or start saving. Regularly tracking your budget, especially as your priorities change, can help address financial anxiety and set you up for long-term financial success.
• Consider a no-spend strategy. It may sound extreme but think of it as a hard reset. A no-spend budget consists of cutting all non-essential spending for a set period of time — like a week or a month — helping you save money and get back on track after high spending during the holiday season. Recent Bank of America survey data shows that 45 percent of people plan to utilize this strategy in 2023.
• Take advantage of automatic savings tools. At least 44% of Americans said saving money was a top financial goal for 2023, according to the bank’s survey. By setting up automatic transfers from your checking to savings, you can save without having to think about it. Start small by automatically transferring a few dollars each week, or automatically divert a portion of each paycheck directly to savings.
• Create specific investing goals. Take a look at your current finances and identify both short- and long-term financial objectives such as building wealth, planning for a family, or saving for retirement. It's important to set clear goals and create a specific plan as well as progress check-ins to reach them. Develop an investment strategy and consider utilizing a platform that provides digital self-service options along with the ability to seek advice from a professional.
• Use your credit cards wisely. According to a recent Bank of America survey, nearly one-in-four (23%) people plan to redeem credit card rewards for cash back to increase savings in 2023. To make sure you’re getting the most out of your spending, start by evaluating that you have a credit card that rewards you for everyday purchases – things like filling up your gas tank or picking up essentials at the drug store. As always, try to pay off your credit card balance in full and on time every month.

For more than four decades, Aubrey Lee has been a strong proponent of helping clients identify and satisfy their most important life priorities. He is part of The Aubrey Lee, Jr. and Julius Readus Group based in Farmington Hills. The team is comprised of talented and experienced individuals committed to building strong client relationships based on trust and personalized service.