The time to begin contemplating personal goals for the next year is now. 2022 has been a tumultuous year in finance, and economists are still predicting a recession for 2023. The end of the year provides a fresh opportunity to take stock of your finances and set financial resolutions that will actually put your finances in order.

Setting resolutions can be a terrific approach to accomplish goals, but they can also lead to undue anxiety if you can’t meet their own goals. You must beware that these objectives are deeply personal and resonate with your aspirations. So, despite going for them, allow room for flexibility since it’s only you who can establish them, alter them, and change their priority level.

As counterintuitive as it may sound, the end of the year is the ideal time for mulling over any lingering resolutions and rolling over some of the pending tasks to 2023.  This prudence and continuity ensures that your financial management objectives are not a one-off endeavor.

Whether you want to invest in your future or improve your quality of life, here are four new year’s resolutions that can help you get a handle on your finances.

Set Up an Emergency Fund

An emergency fund is a separate savings account from your checking account that is not tapped until an unforeseen circumstance arises. Having a war chest to tap into in case of any upheavals in your life e.g. loss of employment is financially liberating and good for your prospects.  This emergency fund can cover the basics like rent, food and transportation, but can also be big enough to serve as investment capital.

The Bureau of Labor Statistics estimates that the average American household spends about $67,000 annually on expenses. So aim to have an emergency that can cover 50% of these expenses at any point in time. It removes the worrying of how much money is left in your bank account or credit card debt payments coming due shortly after an incident occurs.

Learn About New Investment Tools

We all have an investment tool we prefer. For some, it could be stocks and securities, or real estate, bonds, cryptocurrencies or ETFs.  Whichever you prefer, deliberate to clear out any information gray areas you may have to help you become money savvy.  The point is to be able to make fact based independent opinions, even on the most dreaded tools by common investors. Having this knowledge by yourself will help design an investment portfolio that meets your needs, but could also help you divest.

Reign In Your Credit Card Debt

Make 2023 the year you shop smarter, taking great consideration to what you put on your credit cards. It’s counterproductive to save money off something in a sale, then spend years servicing the debt off your credit card. Having an excessive credit card balance may also lower your credit score. Therefore, maintaining good credit is crucial if you have plans to do things like getting a mortgage, car, or apply for a new credit card in the nearish future.

While you can shift high interest debt to a card with a low or zero APR or a personal loan, it is important to plan ahead for the holidays and limit your indulgences so that you can continue working towards your larger goals.

If you already have some credit card debt, it’s time to make a strategy to get ahead of it. Make sure that any payments are completed on time and in full so that no late fees or penalties are charged to those invoices later on.

Take Advantage of Discount and Reward Programs
Discounts, and rewards schemes can accumulate to immense savings over a year.  Leverage credit card points, flier miles, and other rewards programs by choosing cards that give you that little extra–be it cashback, in store credits, or points. Once you collect enough, use them to make savings off things you buy frequently.  For maximum benefit, use the programs consistently.

For 2023, resolve to have a personal dialogue about your money sense and how to improve your financial habits. This means having all the right information by filling any knowledge gaps, correcting previous errors and laying frameworks for future growth. The worst that could happen is heading into an economic downturn without having all your financials covered. One great habit to help achieve this is to have resolutions that run all year long instead of one-off projects.