On Your Side: Get financially fit in 2023
SPRINGFIELD, Mo. (KY3) - There’s no better time than the present to get financially fit. The first month of the year is a fresh start for your wallet. Don’t sprint. Managing your money is a marathon. Pick one money goal to achieve this year: Is it save more? Invest more? Pay down debt? If so, how much?
Review budget and purchases
Start by reviewing your budget and purchases. Take a good look at your bank and credit card statements. Is there anything you don’t need? What can you trim? Can you cut back on dining out, entertainment or shopping? Can you reduce what you pay for the essentials?
“It might be the time to call about car insurance,” said Pamela Hernandez with Better Business Bureau. “Has something in your circumstances changed? Are you driving less? That might save you on car insurance.”
Start small with small goals
“I think what’s important to remember is every little bit helps. So whether you’re trying to pay down credit card debt or build emergency savings, even $5 at a time can help,” said Hernandez.
Contribute to emergency fund and savings
Money experts recommend you save six months’ worth of income. If that’s overwhelming, save a few hundred bucks for an emergency fund.
“Set a smaller goal, like $500. For many people, $500 is enough to help them when they get in a tough financial situation,” said Hernandez.
Start a retirement fund.
If you don’t have a retirement fund, start one. Cash out those credit card points and put them into a Roth IRA. It’s like having free money that will grow.
Tax refund plans
If you expect a tax refund this year, consider how you’ll use it. So you do not splurge.
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