As we enter the new year, it’s a good time to reflect on our financial habits and make a plan for the year ahead. Being financially savvy involves making smart decisions with your money to achieve your financial goals and live a comfortable, stress-free life. Here are some tips to help you be more financially savvy in 2023:
Create a budget and stick to it.
A budget is a plan that outlines how you will spend and save your money. It’s important to track your income and expenses so you know where your money is going. This will help you identify areas where you can cut your expenses and save more money.
Using our Budget Calculator which will help you track your monthly ingoings and outgoings and is a great way to identify savings opportunities.
Create an emergency fund.
Save for emergencies. It’s important to have an emergency fund in case something unexpected happens, such as a job loss or a medical expense. Aim to save at least three to six months’ worth of expenses in a separate account that will keep you financially stable for any unprecedented event.
Invest in your future.
Saving for retirement is important, and the earlier you start, the better. Did you know that from January 2023 onward, the State Pension will be €265.30 per week. Do you think you could survive on that in retirement? Investing into a pension early means ensuring you live the life you deserve in retirement.
Start investing regularly. Consider investing with the Alpha Savings & Investment Club to take advantage of compound interest and grow your savings over time. The banks, Credit Union, and Post Office offer close to 0% interest and the value of your savings are eroding to inflation. Making your money work for you is a great way to start your journey to becoming financially free in 2023.
Cut expenses.
Look for ways to trim your budget and save money. The cost of living is at an all-time high with heating, fuel and general day-to-day living costs increasing by over 9% since 2021 (check out CSO’s Consumer Price Index). Lowering your outgoing financial costs could include cancelling subscriptions you don’t use, switching to a cheaper phone plan, or cooking at home instead of eating out. Small changes like this could save you more than €100 euro per month.
Shop around for the best deals.
Don’t just accept the first price you see. Take the time to shop around and compare prices to get the best deal. This is especially important for big purchases such as a car or a house. Make sure to review all of your insurance and protection policies to see if you can get a cheaper premium. Using sites like DoneDeal to search for cars (*making sure to only buy from dealers that offer a warranty), Chill Insurance for the best insurance offers and Daft to see average housing prices in your desired buying location are all great sources to help you lower your big financial spending and save your money.
Use credit wisely.
Credit can be a useful tool, but it’s important to use it responsibly. Avoid carrying a balance on your credit cards and pay your bills on time to avoid accruing interest and damaging your credit score. Our financial advice would be to ditch your credit card if possible.
Seek professional advice.
If you’re unsure about your financial situation or have specific financial goals, consider seeking the advice of a financial planner. They can help you create a financial plan and provide guidance on saving, investing, and managing debt. You can book a full financial consultation with one of our trusted advisors here.
By following these tips, you can become more financially savvy and make the most of your money in 2023. Remember to be patient and consistent, as building good financial habits takes time. If you want to learn more about becoming financially free, head over to our YouTube channel to keep up to date with our latest webinars.
