Organizing your finances is crucial in the aspirations of a good year
With the arrival of a new year, many people take the opportunity to also update their list of priorities at an economic level, and with that idea in mind many project new goals for personal purposes to deal with the arrival of 2023.
In this sense, and after a month of December where people usually spend a lot of money, it is important to allocate the money responsibly, without exceeding unnecessary expenses, so that the pocket is not affected by the bills that arrive at the beginning of the 2023.
Next, we give you 7 recommendations to organize your personal finances for 2023:
1. Review how personal finances were in 2022
While it is important to set financial goals, you will first need to know the current situation wellhe. Analyzing how the finances of the previous year were allows us to understand what type of behavior was had and from there come up with a plan for the new year.
In this context, it will be necessary review savings Y outstanding debts. Although assessing the situation can be stressful, knowing it will allow you to establish realistic goals by 2023.
2. Design a budget to achieve your goals
Before defining what you want to achieve in 2023, you should establish a monthly budget to be clear about both income and expenses. By organizing the fixed expenses of the month, you will be able to determine how much you can save or invest to meet your goals or, conversely, how you should organize yourself to stabilize your finances. The important thing is that from the outset you organize your budget so that it is a friendly new year with your economy.
These small expenses such as: Cigarettes, empanadas, among others, are not taken into account when making the budget, since we think that they do not represent a large sum of money. However, it is one of the expenses that generates the most cash outflows and that ends up affecting our cash flow.
We invite you to read: The worst places to keep your money at home
3. No more debt
The second step to keep yourself organized is not to get into debt anymore, not to borrow from banks, friends or family, at least until you have everything under control. If necessary limit the use of Credit cards and start paying everything in cash, with your own money.
Remember that it is always possible to find unnecessary expenses and eliminate them.
4. Prioritize the fulfillment of your new purposes
It is very likely that with the arrival of 2023 you want to achieve several goals and, faced with this, the recommendation is to prioritize them taking into account your finances. Do not make the mistake of acquiring new obligations, only for the desire to check everything that you have proposed for the new year. It is better to know the indebtedness capacity without incurring too many obligations and set only the achievements that you can meet according to your financial resources.
5. Make an emergency or retirement fund
Once the previous methods have been incorporated, you can start working to avoid repeating past mistakes. In this sense, a key recommendation is to generate an emergency fund. The first thing will be to write down the essential fixed expenses, which will also help to pay attention to what money is being spent on.
Investments allow you to enjoy financial peace of mind, something very precious as we grow and we want to develop our own plans or live without worries, since it will allow us to make various decisions, while you see your money grow profitably.
Many people make the mistake of thinking that investing is only done with a large amount of money, however, this is not the case. You can make investments even in small businesses, or in small proportions, and although they may not leave an exaggerated profit, at least there is a method of money entry, even if it is minimal.
7. Use your credit cards wisely
To avoid high interest payments on future bills, it is recommended to use credit cards for what is strictly necessary, make purchases with fewer installments, try not to make advances and, if possible, pay capital to release said obligation.