Finance

START AS YOU MEAN TO GO ON

Mark Salter Certified and Chartered Financial Planner, Fort Financial Planning

2023 is likely to be another challenging year for many and I am sure, like most years, it will be full of surprises, both good and bad. However, I am a great believer in starting the year with a positive mindset!

The new year is a great time to take stock of your budget, debt and investments and generally get your house in order. Take time to reflect on the past year and set new goals for the year ahead.

Start the year by revisiting your budget. Assess your average monthly income, as well as your fixed and variable expenses, and determine your financial priorities for 2023. For example, maybe you’re looking forward to putting extra income towards a dream holiday over the summer, or perhaps you are planning to save more to help with your children’s university fees or your own retirement. Understanding your top priorities can help you develop the ideal budget for you.

It’s also a good time to double-check you have sufficient savings for a rainy day. Not only can an emergency fund help you avoid having to sell investments during times of market volatility, it can also keep you afloat if your employment situation changes or the general cost of living expenses continue to rise as they did in 2022. Having a short-term jar of cash will provide you with a comfortable cushion to enable you to concentrate on other goals. Interest rates are now higher than they have been for some time, so also find a competitive home for your instantly available savings.

If you have debt and feel that you are already good at managing it, consider taking steps to help reduce and consolidate it further. Reducing the number of loans you have can simplify your financial life and ease money stress.

The past few years have not been easy – emotionally or financially – and many people have felt less in control of their lives. Use the new year as an opportunity to feel more in control and prioritise your wellness – being financially prepared and organised will not only help you achieve your lifetime goals and ambitions but make you feel better as well.

Be sure to check whether you are still tracking towards your goals, such as savings and investing for a comfortable retirement. If you are off track, look at what steps you can take to get back on target. In the current economic climate, it is equally important to review your financial plan along with any investments you hold.

Don’t forget to also review all of your insurance policies such as household, car and even life assurance. Are the policies adequate for your needs or is there a less expensive policy available with another provider? Taking the time to do this could also help you save money which could then be used more effectively elsewhere.

Have you made a will or does your will need updating? This ensures that your personal belongings, assets and investments go to the beneficiaries you choose. In addition to building wealth, it’s important to protect it too.

Start 2023 as you mean to go on, organise your finances, make a plan and stick to it. Financial well-being is so important for all of us.

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