One of the different activities that we carry out at this time is to establish new objectives for the following year. We all want a new house, start a business, a promotion, or a trip, among others. If you want these dreams to not remain just plans, you need to set goals for your personal finance that really help you fulfill them.
Many people consider that setting resolutions to improve the management of your money is a waste of time. Maybe you set resolutions last year, but maybe they only lasted a couple of months and you never went back to evaluate them.
A study carried out by the American company Fidelity Investment concluded that making financial resolutions for the new year can really contribute to improving your personal finances.
The study shows that 51% of people who set goals last year reported that they feel much better about their money situation right now.
Contrary to this, only 38% of those who did not set any goals feel satisfied in managing their money.
We invite you to learn about 4 resolutions for this new year that will help you improve your personal finances and achieve your goals in 2023.
How to improve my personal finances this 2023?
1. Report all your expenses.
Knowing the value of our income is very simple. However, knowing how much money we spend is a more difficult task to perform.
Those who do not have control of their personal finances generally find themselves in trouble at the end of the year; with increases in their debts, zero savings accounts and projects without starting. And as a result, they get frustrated.
It’s time to commit to this tedious but important task. Count each week how much money you spend on each of your activities.
It includes the money you pay for your home, food, debts, entertainment; each of your expenses must be taken into account. To do it in the best way, until it becomes one of your good habits.
Find a certain time and day to do it. You can help yourself with an Excel sheet on your computer or with the help of apps.
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This will allow you to clearly know savings goals according to your abilities and find the money leaks that prevent you from meeting your goals. It is a primary activity that you should start doing right now.
2. Organize the payment of your debts according to the highest interest rate.
Make a list of all your debts, credit cards, loans and mortgages, with the respective amounts to be paid. Meet the minimum payment for all debts but pay off as much money as possible on the one that is generating the highest interest.
It seems simple, but sometimes when we have different types of debt we are not even interested in finding out what interest rate we pay. And this can make a big difference in your savings at the end of the year.
3. Set a monthly savings amount.
Definitely saving is one of the healthiest activities for your finances.
Set a small amount at the beginning of the year according to your abilities. After your December expenses, you may need to start with a small amount each month; but increase it gradually during the year.
Keep it as your personal fund and try to keep it protected by your bank so you have no chance to spend it.
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4. Think long term.
It is important that you not only set small goals, but that you train yourself to execute budgets for larger investment projects such as a property, the start of a business or some activity that generates extra income.
For this, like any new task, you need to acquire information and train yourself. Define your possibilities and seek to generate real goals with the management of your money so that you feel proud at the end of the year.
Another important aspect to improve your finances in 2023 is to create other sources of income. For this we recommend you read the following article:
51 profitable businesses easy to start What are you waiting for?
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And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
