Budgeting for 2023
Things to consider saving up for this new year:
- A vacay
- A fixed asset (car/home,etc.)
- Retirement/pension savings or investments
- Medical or other emergencies
The truth is these will come in handy when you least expect it so it's best to stay prepared and not need it then the opposite, we've seen how that episode goes. Here are some tips on how to go about it:
1. Estimate/project how much you'll need for each of the categories above. You can always shop around to see what the internet has to say about a 35 year-old's pension savings and start from there. Alternatively, speak to professionals in each field.
2. Try the 50/30/20: 50% is for essentials, 30% to discretionary spending and 20% to savings/investments.
3. Become a jack of more than one trade: consider additional streams of income
4. Resist instant gratification but ... you can reward yourself now and then, emphasis on a reward, it needs to be earned!
Lastly, credit... this is not the best or first answer to any challenges you may encounter but it would be prudent to monitor your credit score and keep it on the green scale. You can remain green by:
- Paying all your bills on time
- Avoid using credit to cover your basic needs
- Don't spend your entire credit limit
And many other things you can consider to clean up your credit and get your financial ducks in a row. We wish you all the best for 2023!