Set a Price to Achieve Your New Year’s Resolutions
It’s easy to feel anxious and pressured by the idea of achieving significant financial and personal goals. However, as Maria Melchor, a financial content creator and founder of First Gen Living, explains, many of us fail to set a price for these goals and figure out if we are on the right track. Melchor says that setting a 12-month plan can help solve money issues and also soothe the emotional anxiety that may accompany life’s complexities, including family support, funding causes, and acting in accordance with your core values.
Build or Rebuild Your Emergency Fund for Today
Stephanie O’Connell Rodriguez, a financial author and host of Real Simple’s Money Confidential podcast, advised reevaluating your emergency fund. After the COVID-19 pandemic, the last thing anyone needs is more job separation announcements, but here we are. Job security is hard to come by, and many people have had to dip into their savings over the past two years to meet immediate needs.
Increase Your Investment Contributions in 2023, Even If It’s Just 1%
Kimberly Hamilton, founder of Beworth Finance and author of Building Wealth on a Dime, says it’s time to increase your investment contributions. You can start investing in an Individual Retirement Account (IRA) with an amount starting at $20; even if you can only increase your contributions by a small amount, Hamilton strongly recommends taking advantage of the investment opportunities available to you and investing what you can now to build wealth for the future.
Don’t Wait Until April 18 to Start Preparing Your Taxes
Hannah Cole, a tax expert and agent at Sunlight Tax, says, “Mark April 18 on your calendar, as three different parts of money are due on the same day.” The first two months of the year are an excellent time to start reviewing your tax responsibilities and earmarking funds to meet your obligations by the due date on April 18. On that date, you are required to pay taxes on the earned income from the previous fiscal year, estimates for the first quarter of the current year (for self-employed individuals), and contributions to your Individual Retirement Account.
Get Your Future Finances in Order Now
According to a 2016 study by Fidelity Investments, 69% of parents expect one of their children to help manage their investments and financial affairs for retirement; however, no more than one-third (36%) of the children identified for this role were aware of this expectation. Additionally, a report from the Insured Retirement Institute found that in 2019, 45% of individuals belonging to the baby boomer generation had no retirement savings at all. For this reason, Emily Bartz of Firebird Finance says it is very important to start formulating your emergency plan and to discuss your parents’ and seniors’ plans as well.
Start Building a Small Business or Side Hustle
Serial entrepreneur Tavonia Evans understands that people are rightly concerned about the widening wealth gap and shrinking job market. She says that while the job market may be threatened, a whole new world of entrepreneurship has opened up, and the barriers to entry have lowered. Therefore, she encourages people to consider turning their talents and hobbies into sources of income this year. An increasing number of small, digital resources are helping local small businesses reach more customers.
Source: https://www.realsimple.com/best-financial-advice-from-the-pros-6831058
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