With each new year, most people will start with a few New Year’s Resolutions. Do you have any resolutions for 2023? One of the most popular resolutions is for better financial success throughout the year. Financial success can seem like a daunting goal, especially if you’re struggling to get by from month to month. However, with some planning and discipline, it is possible to improve your finances and work towards a more stable and secure future. This is no easy task, but you will have an overwhelmingly rewarding feeling when you achieve your financial goals.
In this blog post, we will share some tips to help you achieve financial success in 2023.
- Create A Budget
- Pay Off Debt
- Save Regularly
- Invest Wisely
- Stay Informed
- Seek Professional Help
Create A Budget
This is the foundation of any financial plan. By keeping track of your income and expenses, you can see where your money is going and make adjustments as needed. To create a budget, start by listing all of your fixed expenses, such as rent or mortgage payments, car payments, and insurance premiums. Next, list your variable expenses, such as groceries, entertainment, and dining out. Finally, add up your total monthly income and subtract your expenses to see if you’re spending more or less than you’re earning. If you’re spending more, look for ways to cut back on your expenses. If you’re spending less, consider putting the extra money towards paying off debt earlier than anticipated, or into savings.
Pay Off Debt
Credit card debt is one of the popular debts to have. Over 51% of Americans have some amount of credit card debt, with 6% having more than $10,000 in credit card debt. While 6% of American doesn’t sound like a lot, that is near 14 million Americans with over $10,000 of debt holding back their financial freedom. High-interest debts, like credit card debt, can hold you back from reaching your financial goals. The interest you pay on this type of debt can add up quickly, making it harder to get ahead. Focus on paying off your high-interest debt as soon as possible. One effective strategy is to make the minimum payment on all of your debts and then put any extra money towards the debt with the highest interest rate. Once that debt is paid off, move on to the next one and so on. This strategy has become popularly known as, “The Snowball Effect.”
It’s important to save a portion of your income for emergencies and long-term goals. Consider setting up automatic transfers to a savings account to make saving easier. Aim to save at least 10% of your income, but if you can save more, even better. Figure out your budget first to see what you can afford to save each month. Even the smallest amount will help start your good saving habits.
When saving for long-term goals, such as retirement or a down payment on a house, consider using a tax-advantaged account, such as a 401(k) or IRA. We welcome you to discuss these savings opportunities with our AB&T Trust & Wealth Management Team to learn more.
Financial success is a slow and steady process. The truth of the matter is this. If you have some extra money to spare, consider investing it to help it grow. However, it’s important to be cautious when it comes to investing. Don’t be swayed by get-rich-quick schemes or take on more risk than you can handle. Instead, carefully consider your investment options and don’t be afraid to seek advice from a financial professional. Diversify your portfolio to spread out your risk. This means investing in a variety of assets, such as stocks, bonds, and real estate, rather than putting all of your money in one place.
It’s important to stay up-to-date on financial news and trends so you can make informed decisions about your money. Consider subscribing to financial newsletters or taking a personal finance class. This can help you better understand financial concepts and how they apply to your situation.
Seek Professional Help
If you’re struggling to manage your finances, don’t be afraid to seek the help of a financial advisor or counselor. They can provide valuable guidance and support. A financial advisor can help you create a budget, invest your money, and develop a plan to pay off debt. A financial counselor can provide more general advice and support to help you improve your overall financial situation.
By following these tips and being proactive about your finances, you can work towards a financially successful future. Remember to be patient and consistent – building financial stability takes time, but it is well worth the effort. Don’t be discouraged if you encounter setbacks along the way. Instead, use them as learning opportunities and keep working towards your financial goals.
About American Bank & Trust
American Bank & Trust is a locally owned and locally managed bank that has been serving the area since the late 1800’s. We pursue a growth strategy that affords us the capacity to meet and serve all of our customers’ financial needs and make available to the customer all of the financial products they desire in today’s fast-paced world. We are a service-oriented organization with independent leadership based in our communities. Our strong, well-managed, growing, innovative community banks offer an elite level of financial expertise that overlaps with individuality and empowerment, and an excellent reputation. American Bank & Trust offers great opportunities, makes an impact, and is a place where people like to work, grow, and make a difference. That is where you will find the very particular hue of difference that distinguishes our employees and relationships from other banks. ‘Where what if meets why not,’ you’ll find us hard at work.