It’s two weeks into the new year and many people would have already written their resolutions for 2023 but what about their financial resolutions?
Financial resolutions are important because they can set you on the right financial path at the beginning of the year and ensure you stay disciplined with your money.
John Manyike, head of Financial Education at Old Mutual, said: “The art of making financial resolutions that work lies in being disciplined and focused, getting back to basics and taking steps to build a sustainable financial future.”
Here are three financial resolutions that you can make for 2023:
Pay off debts
By paying of debts people can create more disposable income that they can put towards other things such as investing.
“When you pay yourself first, focus on paying your debt, which relieves stress for you,” Janine Jacobs, head of financial reporting at Glacier by Sanlam, said.
Jacobs shared two approaches people can use when paying off debts:
– Snowball: paying off the smallest debt first
– Avalanche: paying off the debt with the highest interest rate first
Start saving money
Having a savings fund or an emergency fund can be handy should you face a tough financial situation, lose your job or be responsible or an unexpected expense.
Saving money is also vital if your goal is financial freedom especially later in life when you retire.
According to Sebastian Alexanderson, founder and debt counsellor at National Debt Advisors, saving money is a very important part of any healthy personal finance management strategy.
Having a budget can be useful to help people start saving money because they can will have a clear overview of their income, expenses and how much money they can put towards their savings,
Get financial advice
Consulting with a financial adviser can help people get started on their financial plan for the new year.
Katlego Gaborone, a financial planner at Momentum, said a financial adviser can assist people with planning and setting realistic goals as well as offer guidance on how they can invest their money.
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