Five Ways To Make Better Use Of
Your Income In 2023
Five Ways To Make Better Use Of Your Income In 2023
It’s a new year, and it is important to know that setting yourself up to thrive requires some intentionality, which would include planning your finances. Getting an early start will help you come up with a solid plan for your income, debts, savings, and ensure that you are continuing to make progress on your short-term and long-term financial goals.
There are a few ways to make better use of your income in 2023, some of which we have been able to sum up for you in this article.
Dust Off Your Budget
Having a rethink of your budget in the new year can help you figure out where you’ll need to make adjustments. For instance, your income may have changed since the last time you checked in on your budget, or it could be that you’ve taken on a new debt or paid off a loan.
Being aware of how much you’re spending and how you expect that to change in the new year can help you stay on track to reach your goals and make sure that you’re setting enough money aside to cover your expenses and hit your goals in a timely manner. So if you spent quite a lot on gifts or holiday expenses late last year, it’s now a good time to consider how you’ll make up your savings or pay down any debt you’ve taken on as a result.
Invest In Real Estate
This is one of the most lucrative and sustainable ways to use your income in 2023. There are even options suitable for real estate investors that do not want to bother their head with property management themselves.
Investing in shares of real estate investments is definitely one good way to profit from the industry without wasting time and effort necessary to manage a property. It is also important to know that such investments are a desirable choice in terms of high-yield safe investments and a very safe choice to make better use of your income in 2023.
Evaluate your Subscriptions & Memberships Services
There are so many subscription services out there that we knowingly or unknowingly subscribe to and that can affect our income, for everything from streaming music to vehicle theft protection to video doorbells, movie apps and so on.
All of these different monthly costs can really add up and may not be necessary for you. So, take a look at your cards and bank statements to see what programs you’re subscribed to or services you’re a member of. If you get to notice anything on your list that you aren’t actively using and getting value from, you can cancel it and redirect that money into savings instead.
Learn To Maximize Your Retirement Contribution
As we already know, saving for retirement may not be top of mind on a day-to-day basis, but it is important to keep track of your savings and increase your contributions as you get older so that you can benefit from potential employer matches and continue to grow your nest egg for the future.
Create A Line of Credit
A line of credit is a loan you get from a financial institution that has a defined amount of money that you can access when needed and repay either immediately or after a period of time. Having a line of credit is regarded as a smart idea, particularly during economic uncertainty. Although, ideally, it is to be used only in the event of a job loss or to fund an unexpected expense that might otherwise require you to sell an asset at a depressed price.
The bedrock of financial planning principle is that people are advised to maintain sufficient cash reserves so that we can navigate unexpected expenses. The best credit line is one that is readily available if needed, but rarely if ever used.