2023 is coming really soon. You know what that means - NEW resolutions for the New Year. In this article, we’re going to recap your financial situation and turn your woes into goals!
Having goals to hit in the coming months is a great way to improve your finances. Plus, you can also use it as an opportunity to reflect on the past and set goals for the future. Let’s aim for financial success in 2023!
1. Save, save, save!
Savings is a must-have in your new year's resolution list! Based on the 50-30-20 budgeting method, the rule of thumb here is to spend 50% of your income on essentials, 30% on your wants and 20% on your savings. For example, if you’re earning every month RM3,000, then you should be saving RM600 monthly.
But with today’s inflation, it can be a struggle for you to even set aside that much! Understand your financial situation and save accordingly. Remember, every Ringgit counts - even if it’s as low as RM10!
If you have been consistent with your savings. Time to level up your savings! Aim for a bigger savings goal for you to hit by the end of 2023.
2. Make your FIRST investment OR diversify your portfolio.
Time for you to try something new with your savings! Investing is a great and effective way to put your money to work and build your wealth. Plus, your money will grow in value over time with the power of compounding and risk-return tradeoff.
Check out our article on Fixed Deposit Alternatives in Malaysia that you didn't know about!
3. Manage your debt.
We’re going to be realistic about having debts - it’s really, really hard to clear them off! However, the next best thing you can do is to manage your debt well. Sometimes, having debt is unavoidable, you need to take up loans for your car, house, or installments and others. But you can make sure that you’re paying off whatever you owe each month until it all gets paid off.
For those of you struggling with credit card debt, read our article 6 Ways To Pay Off Your Credit Card Debt.
4. Start tracking your finances.
Add this to your financial resolutions because this is a major lifesaver! Because really, how can you ever be in control of your finances if you don’t keep track of them? Some of the key items that you need to keep track of are your spending, savings, investments, budget list, loans/commitments and miscellaneous items.
When you keep track of your finances, you might just discover some “bad” habits you never knew existed! For example, you come to a sudden realization that you’ve been spending way too much money on food delivery! It’s the little things that you spend on that accumulate into a big spending sum.
Read our article on 11 Free Budgeting Apps That Can Help Track Your Expenses.
5. Try a money-saving challenge
Money challenges are a great way for you to kick-start your savings journey! For those finding it extremely difficult to save, these challenges will be able to help you prioritize your goal!
Some money-saving challenges you can try:
The "no eating out for a month" challenge
The "no spend" challenge.
The 52-week challenge
The coffee break challenge
If you have kids, you can try 3 Fun Money-Saving Challenges For Your Kids. But hey, adults can totally do this too!