The year is already over? How can that be? We can’t believe it either. With work resting over the holidays and travel plans set, you probably have a lot on your to-do list. But the end of the year is also a great – dare we say satisfying? – time to review your finances and make plans for the year ahead.
So as you work through your pre-break checklist, be sure to add a few of these important money checks to the list. Even if you only get a few of them done, it could make the upcoming time off feel all the more enjoyable. Trust us.
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Review your spending for Christmas & New Year’s Eve
Determine your financial limits for the holiday season. Will you be giving gifts this year? Are you planning a big celebration for the New Year?
If so, decide how much you want to spend. Pleasing your loved ones doesn’t always have to cost a lot of money. If you set some limits in advance, you’ll have a promise to fall back on when the holidays inevitably descend into chaos.
Review your spending for 2022
Every once in a while, it pays to take a look back at your financial planning. By getting a complete picture of your finances over the past year, you can start 2023 relaxed and have an up-to-date view of what’s happening.
- Did your expenses go up or down last year?
- How is your financial footing?
- How do you plan to optimize your budget for next year? (If you feel your finances have gone down a bit, that’s partly out of your control – inflation has lowered purchasing power recently.)
Bonus points if you find some unused expenses, unwanted subscriptions, etc. that you can cut down on!
Check your emergency savings account
This is just a maintenance check – if you’ve dipped into the account this year or fallen behind on contributions (due to the markets), a solid plan to replenish the account for 2023 can help you combat the uneasy feeling that you’ll start the year in the red.
Set goals for your investment portfolio
This year has not been a pretty one for investors – from one low to the next, our nerves have been severely tested after all. But there is a positive side to all of this: every stock market crash means a new opportunity to get in on the action.
And in order not to be tempted to wait for the absolute low point and thus miss the optimal time, it is best to invest regularly, such as monthly, for example. Consider for the new year how much money you can and want to invest monthly in the capital market.
So you automatically buy more when the market is low and less when it’s high – like a financial professional. Set the amount so that you can pay it in even when unforeseen costs arise, without maneuvering yourself into a liquidity squeeze. That way, you’ll build wealth for the long term, and short-term market fluctuations will leave you cold.
