Financial Goals for Your New Year Resolutions in 2023

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By: Andrea Hoyt

Jan 24, 2023

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7 minute read

Summary

Learn about the ways to reach your financial goals for the new year. Boost financial wellness by budgeting, managing debt, & improving credit score.

In this article:

As the calendar flips to the new year, we don’t leave behind a bumpy economy. But there’s no better time to assess your financial situation—and we have some ideas for where to If you decide you want to spend less this year, look at a month of purchases and sort them by needs and wants. Differentiating between the two can make a huge positive impact on your budget. You’ll be surprised by how fast you can train your brain to quickly classify a potential purchase and maybe prevent yourself from buying something you’ll regret. begin. Whether you intend to focus on one big financial goal for the new year or just a series of small steps toward building good money habits, we’re here to help with practical advice. Start implementing these financial tips right away to ring in real (and lasting) results, regardless of your financial situation.

1. Make budgeting your #1 goal. Budgeting is the basis for financial well-being. If you don’t know how much you have and how much you spend, your other financial resolutions are less likely to succeed.

This is the year to finally figure out a budget, and it’s easier than you think. Just tally up your monthly expenses—things like rent or mortgage, utilities, cable and cell phone service and credit card/loan payments—then subtract from your post-tax income. What’s left is what you have for expenses like groceries, clothing, dining out and savings contributions. If your income is inconsistent, budgeting can be a little trickier, but it’s still possible.

2. Look for ways to cut down on spending. Budgeting doesn’t mean you can’t have any fun. However, following through with your financial New Year's resolutions may mean you need to cut back. According to a survey by Slickdeals, impulse spending increased by 14% in 2022.1 If you suspect you’re one of those spenders, try some new strategies for avoiding impulse purchases.

Subscriptions are also an increasingly large expense for many Americans. These regular (and often forgotten!) costs are easy to lose track of, sometimes unnecessary and can really rack up charges. Try laying out all your subscription costs and deciding what you can live without. Plenty of apps and services can help with this. For example, OneMain customers can sign up for Trim, which helps cancel unwanted subscriptions as well as negotiate with service providers to lower your monthly bills.

3. Sort needs vs. wants. Ongoing debt can be overwhelming, but finding small ways to make additional payments can help you pay it down. As one of your new financial resolutions, try taking the money you saved from your spending cuts and adding that extra to your regular monthly bill payments. Another tip: With tax season coming, you may get a refund. Instead of spending that money on something new, maybe use this year’s refund to pay off debt.

4. Pay down debt. Ongoing debt can be overwhelming, but finding small ways to make additional payments can help you pay it down. As one of your new financial resolutions, try taking the money you saved from your spending cuts and adding that extra to your regular monthly bill payments. Another tip: With tax season coming, you may get a refund. Instead of spending that money on something new, maybe use this year’s refund to pay off debt.

5. Research extra income opportunities. Side hustles and non-speculative investments can help you gain ground on your financial goals this year. Whether you want to make money from home, turn a hobby into a business or set yourself up for passive income, research is key. Start searching the internet to find ideas that will work for you.

6. Develop new financial habits. As part of your financial New Year's resolutions, try replacing bad habits with good ones. If you have trouble remembering to pay your bills on time, fix that habit by setting up calendar alerts or enrolling in automatic payment programs. If you don’t regularly check your credit, start checking it at least once a year.

7. Make saving automatic. Round-up apps like Acorns and Chime make saving so simple, you’ll barely realize you’re doing it. Every time you use the app's debit card to make a purchase, it's rounded up to the nearest dollar and the difference is deposited into your linked savings account. Some apps help you invest the extra money, but be aware of any fees associated with using these apps.

Another way to make saving easier is to set up recurring automatic transfers to the savings account at the bank where your paycheck is deposited or to the savings account linked to a round-up app. With online banking, you may be able to set the transfer up yourself. If not, call your local bank branch to ask about this no-brainer way to save.

8. Take steps to improve your credit score. A higher credit score could help improve your access to credit and lower interest rates. Be sure to pay your bills on time, avoid missing payments and keep your credit card balances low. Get your free annual credit report and review it to check for errors. You can dispute errors with the three national credit bureaus.

9. Start a retirement account. If you can afford immediate necessities and have money set aside for emergencies, planning for retirement is a good next step. Take full advantage of employer-provided retirement plans, especially if they match your contributions. Compare 401(k)s vs. IRAs to learn what’s best for your specific financial situation. Investing in your future is a New Year's financial resolution you’ll never regret. And once your account is established, you should be able to automate contributions to make retirement savings truly effortless.

10. Learn more about financial wellness. Even if you aren’t in a place to make huge money moves, getting a financial education is always a worthy goal. The more you know now, the more you can do with your money in the future as opportunities arise. We’ve broken down smart money moves you can make in your20s, 30s, 40s, 50s, 60s and beyond. Use them to keep pace with your goals and make the most of every new year.

What is the most popular New Year's resolution for 2023?

In a Forbes Health/OnePoll study, improved mental health was the number one New Year's resolution for 2023. The next three most popular were health-related as well and involved diet, exercise and weight. However, the fifth most popular resolution was financial. 24% of people 18–24, 34% of people 26–42 and 33% of people 42–57 said that improved finances were their top goal.2

Small changes really add up

Now’s a great time for a fresh financial start. When it comes to financial planning, small changes can make an immediate difference. Establishing new habits doesn’t have to be painful or even boring. And you’ll be rewarded with the peace of mind that comes from knowing you’re moving toward a brighter financial future.

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This post has been updated since its original posting on January 10, 2022. Maureen Rayburn contributed to this post. 1. https://www.ftc.gov/news-events/news/press-releases/2022/02/new-data-shows-ftc-received-28-million-fraud-reports-consumers-2021-0 2. https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/01/social-media-gold-mine-scammers-2021 3. https://consumer.ftc.gov/articles/what-know-about-romance-scams 4. https://www.bbb.org/article/scams/18854-bbb-warning-secret-sister-gift-exchange-is-illegal 5. https://consumer.ftc.gov/articles/gift-card-scams

This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.