9 things to do before 2023 for financial success
Things to do before 2023 for financial success
It’s no surprise that a successful financial future begins with smart money decisions today. Whether you’re just starting out or trying to right some wrongs of the past, now is the time to get your finances in order and set yourself up for long-term success.
We’ve compiled a list of 9 things you can do before 2023 if you want to gain more financial security and increase your chances of achieving your long-term goals. From understanding basic budgeting principles to learning how to save for retirement, this guide provides everything you need to know about getting ahead financially, all while giving you the motivation and encouragement it takes along the way!
1. Update your budget
The beginning of a new year is always the perfect time to evaluate things like our budgets and financial plans. Identifying things we can cut back on or things that have gotten expensive over the last few years is essential to make sure our money goes even further. By taking a few moments to update your budget, you can identify things to do before 2023 that will stick with you all year long. Start small by adjusting things like allotted phone/internet bills, grocery money or housing costs if they’ve increased. With any luck, this will open up more opportunities and make room for long-term savings goals such as vacations or retirement!
2. Make a plan for your student loans
With student loan debt at an all-time high, planning for your student loans is more important than ever. One of the things you must definitely do before 2023 is consider consolidation and refinancing options. Consolidation allows you to roll multiple loans into one loan with a competitive interest rate and lower monthly payment. Refinancing can even help you save thousands on repayment over the life of the loan by locking in a lower interest rate. Remember, there are so many options available to make things easier, so plan ahead and get creative! Taking these steps now will save you money and headaches down the road.
3. Open a high-yield savings account
If you don’t already have one, opening a high-yield savings account should be on your list of things to do before 2023. With a high-yield savings account, you can enjoy significantly higher interest rates than traditional savings accounts, allowing your money to work harder so that achieving your financial goals in the new year is easier than ever. Plus, opening and managing these accounts tends to be incredibly straightforward and simple – no need to worry about complicated paperwork or long processing times! With a high-yield savings account, you’ll be setting yourself up for success and taking steps towards financial freedom in no time.
4. Prioritize paying down high-interest debt
If you’re looking for smart money things to do before 2023, consider prioritizing paying down high-interest debt. High-interest rates can be a burden on your finances and can make it harder to reach your financial goals. The benefit of tackling debt is that you are investing in yourself, since there is no better return than getting out of the cycle of high-interest payments! Don’t worry if it seems daunting—start by taking small steps and create short-term goals that seem manageable. The important thing is to take consistent action and keep going, as each payment will get you closer to having the financial freedom you desire.
5. Save a little extra in your retirement account
Saving for retirement can seem intimidating and time-consuming, but it’s more manageable when you start with even small amounts. Think of planning your retirement as things to do now, before 2023. Paying into a retirement account such as an IRA or 401(k) is one smart way to secure your financial future. It will also give you peace of mind knowing that you are looking out for yourself in the long run. Putting money away now can create room to enjoy greater things during retirement and give you a less stressful transition when the time comes. Even if all you can afford is a small amount, it’s better than nothing at all – plus there might be tax benefits too!
6. Spend down your FSA & HSA
Now is the time to be proactive in spending down your FSA. The IRS has set a deadline of 2023 for expenses associated with healthcare, so things like vision exams, dental hygiene appointments and over-the-counter products may be things to consider adding to your list of things to do before 2023. Finding ways to get the most out of your Flexible Spending Account can help you save money, so it’s worth taking advantage of this before the new year rolls around. Start getting proactive now and explore all the things you can do while your FSA is still active – you’ll be glad you did when it comes time to hit the reset button in 2023.
7. Check your credit report
Checking your credit report should be at the top of your to-do list before 2023. Doing so can give you a detailed history of your financial transactions, which will help you stay on top of things and make sure all your payments are being reported accurately. Furthermore, a thorough review of your credit report could reveal any potential case of fraud or identity theft that you weren’t previously aware of. Your credit report is one of the most important documents in your financial life, so it’s always a good idea to check it regularly for peace of mind. Taking the time to review it now puts you on track to achieving greater financial success in the years ahead.
8. Evaluate tax loss harvesting opportunities
Tax loss harvesting can be an effective way to save on taxes, especially when done strategically. Thankfully, things about tax laws change often enough that we’re offered new opportunities to lower our taxes in ways that weren’t available before. Before 2023, it’s wise to take a closer look at any current or upcoming investments and assess the potential benefits of tax loss harvesting. A professional financial advisor may also be able to provide insight into how your portfolio’s stock could help lower your overall taxable income. It may seem painful at first, but the boost to your after-tax return, in the long run, could be worth it!
9. Consider a Roth conversion
A Roth conversion could be a great way to maximize your financial future, especially if things like new legislation or low interest rates affect the value of your investments. With a few simple things done before 2023, like analyzing both the benefits and drawbacks of a Roth conversion and examining how other investments may perform in relation to it, you can be on the path towards building wealth soon. Making educated decisions with the help of guidance from experts can put you in a better position to achieve your long-term financial goals.
By taking action on this list of things to do before 2023, you’ll be setting yourself up for financial success. And you don’t need to be perfect. Just making some small tweaks in your lifestyle and habits can put you on the path toward a brighter future. Download our Free Monthly Budget Worksheet to get started making changes today.