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Most people make money resolutions for the New Year to correct the financial mistakes they’ve made to themselves over the past year: they overspent, went into debt, underperformed at work, etc. But not everyone starts 2024 with their remittance. drinking water.
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A new GOBankingRates survey of more than 1,000 adults found that nearly half the country, around 44%, feel good — or at least pretty good — about their financial well-being at the end of 2023. Almost one in three say their financial situation is good but that there’s still room for improvement. Another 12% say that things have never been better.
The holiday season of big spending and overspending makes it easy to achieve higher achievements, but as you try to do more next year, you don’t pass up the opportunity to celebrate victories, no matter how small. that would possibly appear.
If any of the following apply to your 2023 tax year, you have a lot to be proud of and feel smart about, even if you’re determined to do more in the new year.
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Most New Year’s resolutions fail because they are too big and broad: get out of debt, cut spending in half, double income, etc.
Goals that are too big to succeed are doomed to fail, but even the tiniest victories can add up to major wins. If you improved your situation even slightly in 2023, you’ve built momentum and laid the foundation for a successful 2024 and beyond.
“People can find satisfaction and pride in a variety of accomplishments,” said Brianna Beski, a financial advisor with Raymond James. “Even if people are making small steps on their financial journeys, they can view these as gifts to their future selves in making their financial position more stable for the long term.”
Examples of baby steps with the potential to become giant leaps include:
Create a retirement fund with a small deposit
Work for your money literacy
Meet with a money advisor to expand a strategy in the future
Consolidate high-interest credit card debt with a balance or loan movement
Develop a budget, track your spending, and extend a monthly spending plan
Read: Ten Healthy Habits for Happy People That Will Ultimately Build Wealth
Rising costs have forced others to take out more loans through 2023. According to the New York Federal Reserve, total household debt rose to $228 billion in the third quarter alone. But with interest rates at their highest level in 20 years, all that new borrowing may just hang them up for years to come.
If you were given the whole year without adding toxic debt to your money profile (or, better yet, reduced the ones you already had), you have plenty of reason to brag about starting the new year, as rates drop.
Jake Hill, CEO of DebtHammer Consolidation, added: “If you paid off some of your debt in 2023, you deserve to be proud of that achievement through 2024. Paying off your debt can have a significant, positive effect on your fitness money by giving you more budget for others. monetary goals.
He continued, “Even if you still have debts to pay off next year, it’s to acknowledge and celebrate the progress you’ve already made on the path to a debt-free life. »
The 3 keys to saving are time, capitalization, and consistency. Third is your work, and if you save even a modest amount of money, then hat off.
“As the year concludes, individuals should feel accomplished if they’ve managed to save a consistent portion of their income, regardless of the amount,” said Dennis Shirshikov, the head of growth at real estate investing platform Awning and a professor of finance, economics and accounting at the City University of New York.
Shirshikov added: “It’s not just about the numbers in the savings account. What counts is the field of normal saving. For example, someone who saves only 5% of their monthly income source has reached a milestone. This field lays the groundwork for long-term monetary stability, similar to building space from scratch. It is the consistency and quality of the bricks laid over time that creates a solid structure.
Traditionally, experts advise saving 3 to six months of income to deal with lost jobs, medical emergencies, car or home repairs, or any other crisis that only money can solve. But in the post-pandemic period, many have revised it for up to nine months or a year.
If you haven’t stockpiled enough for nine, six, or even three months without getting paid, don’t worry, as long as you’ve booked something. If you’ve started building even a modest emergency savings reserve, you have an explanation for why. celebrate.
“Setting up an emergency fund provides nice peace of mind knowing that long-term expenses can be better managed,” said Malcolm Ferrante, an ACCA-accredited expert specializing in finance, investments and foreign taxation as head of the investment migration unit at Grupo CSB.
“Reaching the symbolic milestone of monetary independence is also deeply rewarding, as it allows you to do so on your own terms. “
According to the Caring.com 2023 Wills Survey, two out of three people do not have an estate plan or even a basic will in place. Some said they didn’t have enough money for it to matter. Others said they hadn’t gotten around to it. Others simply didn’t want to confront the issue of their own mortality.
Whatever the reason, leaving that last detail will almost actually cost your children or other heirs money, time, and emotional strain as the court tries to determine what your wishes might have been in the lengthy and expensive probate process.
Renee Fry, executive director of estate planning platform Gentreo, said: “Check the box and make your estate plans. Now it’s undeniable and with online answers that allow you to make your plans in as little as an hour.
Fry added, “Almost everyone knows that you want to expand your estate plan to everything you love, so before the end of the year, submit complete documents like your will or living trust. Know that you have taken the mandatory steps to help all your loved ones when they want it most.
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This article originally appeared on GOBankingRates.com: 5 Signs You Should Feel Good About Your Finances as 2023 Ends