Financial Goals 2023
Tuesday Jan 03rd, 2023
Whether you’re thinking about moving out for the first time, buying your first home or upsizing, maybe downsizing, it’s important to know where you stand financially so you can make well informed decisions that will work for you today and set you up for success in the future. With that in mind we talked to some experts and here’s what they suggested were the most important financial goals to achieve in 2023.
1. Pay Down Debt
The number one goal should be paying off ALL your credit cards as fast as possible and then paying them off every month. Consider consolidating all your debt into one more manageable payment. This is not only good for your financial health and also your mental health as it should reduce financial stress.
2. Boost Your Credit Score
A “good” credit score is considered anywhere from 670 to 740. This ensures that you qualify for credit at a competitive rate, thus saving you money. There are lots of different sites you can find to determine your credit score is currently.
How do you improve your credit score?
💰Make sure you pay ALL your bills on time.
💰Pay off your credit cards.
💰Find out what your credit score is before applying for more credit. If your score isn’t great, wait.
3. Build An Emergency Fund
Experts agree to start right now by making contributions to that fund every month. Opening a separate savings account where the funds are automatically deposited from your pay cheque has been found to be met with the most success. How big should it be? There are lots of online calculators that consider your monthly expenses (including your debt load), your existing savings & the stability of your income. Experts seem to agree that your emergency fund should cover 3 to 6 months of living expenses.
4. Review your Mortgage
If you are a homeowner this is a good time to review your existing mortgage. If you are unhappy with your current rate, refinancing might be something to consider. It’s important to keep in mind any penalties involved in refinancing your mortgage. There are a bunch of different reasons for refinancing your home, taking advantage of better interest rates, taking money out of the home for renovating to name but a few.
Knowing that your finances are in order is integral to making smart financial decisions in the future. Whether it be selling your home or planning for a trip around the world.
This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel or financial representative.