It’s almost the end of the year. We’re sure you’re just as excited as we are to finally turn off and get some much-needed rest.
The end of the year is also a great time to celebrate your personal finance journey in 2022. While you’re enjoying some down time, take the opportunity to check on your finances and make sure you’re all set for 2023.
What’s the point?
If you don’t take the time to reflect on how you spent, how you saved and how you budgeted in the year gone by, you won’t identify any mistakes, losses or leaks in your money boat. You also won’t be able to identify wins! A year-end review shows that you’re intentional about your finances – that you care and that you’re definitely not an Avoider.
Where do I start?
Start by taking stock of what your finances look like now. Not to toot our own horn, but 22seven is literally the perfect app to use for this. Take note of your income, expenses, loans and investments. That way you’ll know what you have to work with in 2023, and what your major expenses will be.
Anything big happen this year?
What changed in 2022? Did your family grow? Maybe you got married or perhaps you got a new job? Pat yourself on the back – these are big, important life things! Now look at how these events affected your financial picture. Did you adjust your budget accordingly? Did you move your retirement annuity when you changed jobs? While you’re relaxing this holiday, take half an hour to work out how you should alter your financial situation to fit your new life.
Now for your debt…
Go through your 22seven profile to determine how much debt you have, but also look at how much debt you paid off in 2022.
If you made a dent in that pesky loan, well done!If you’re still overwhelmed by debt, you need to make a plan. Don’t just blindly pay off debt in 2023 as you did in 2022. Try the snowball method, where you pay off the smallest debt first. Or tackle your biggest debt first by using the avalanche method.
Set a goal for the end of 2023 – to be debt free, or to significantly pay down how much you owe. You can do it!
Let’s talk about saving
Take a moment to review your savings and investment accounts linked to 22seven. How much did you save this year? Your nudges will also show how you fared compared to others who earn in the same bracket.
Did you reach your savings goal? Nice, an extra mince pie for you! If you didn’t, don’t panic. Set a realistic savings goal for 2023 and start saving for real.
Don’t wait until next December…
Did you enjoy doing your financial review? Great feeling, right? Don’t wait until next December to do it again – have a squizz at your finances in March, June and September too. If you adjust your budget regularly to fit your lifestyle and savings goals, you’ll soon start seeing real results on your bank balance.
Go on, check in with yourself before the holiday visitors crowd your house and before the online stores call your name. You deserve it!