As we head into 2023, we face market volatility, high inflation, and economic uncertainty that may have us setting financial resolutions in the new year. According to a survey by the Motley Fool, 66% of Americans make financial New Year’s resolutions. Read on if you’re thinking about what resolutions you can make in 2023!
How to set financial resolutions
- Enlist the help of your Financial Advisor – your financial advisor is your advocate when it comes to championing your financial goals and dreams. Talk to your advisor about your goals and ask for help setting realistic and effective resolutions for 2023.
- Talk to your partner – When was the last time you checked in with your partner about financial goals? The start of a new year may be a great time to discuss your financial resolutions. Sometimes, it may surprise you what your partner may say.
- Set S.M.A.R.T goals- S.M.A.R.T goals are specific, measurable, achievable, realistic, and time-bound. For example, let’s say your goal is to save more. Setting a S.M.A.R.T goal could be: “In 2023, I will max out my IRA by contributing $540 a month to my account.” or “In 2023, I will contribute an extra 1% of my salary each pay period to my 401(k).”
Financial resolution ideas
Your financial resolutions depend on your personal goals and financial situation. While everyone is different, here are some popular ideas to consider.
- Stay invested – Psychologically, it can be challenging to watch market turbulence. It’s important to stay calm and not react emotionally. Historically speaking, markets recover and appreciate in the long-term. In addition, it’s impossible to time the market. No one knows where the bottom or the top is, and missing the best days can come at a hefty cost.
- Contribute more to your retirement accounts – whether contributing an additional 1% of your salary to your 401(k) or maxing out your IRA, your financial advisor can help you set a goal that will help you achieve your retirement goals.
- Review your estate planning documents – Depending on when you last looked at your wills, Power of Attorney documents, titling of accounts, etc., it may be time to look again. Over time, your wishes may change, and it’s good to go back and ensure that your estate planning documents still reflect them.
- Give to charitable causes – Contributing financially to nonprofits can be a great way to give back to philanthropic causes you care about. It can also be part of a strategic tax strategy to lower your tax exposure in 2023. Talk to your financial advisor and CPA.
We’re All In
At Prosperity – An EisnerAmper Company, we are proud to champion our client’s resolutions for 2023 and beyond. If you want to review your financial resolutions or have any other questions, don’t hesitate to reach out to us by using the contact box below or by calling us at (410) 363-7211.