Tips on Controlling Your Money in 2023

When it comes to finances, 95% of people fail.

There are many reasons why people fail to win the money game; no financial game plan, no education, and no coach. Understanding is one key to freedom, and understanding how money works is the first step toward making it work for you and your family.

Many people have the desire to become financially independent or the desire to be able to take care of their family financially. The problem is not desire. The problem is direction, guidance, roadmap. Most people don’t know the right techniques and do not know the rules of the game.

“We all have dreams. But in order to make dreams come into reality, it takes an awful lot of determination, dedication, self-discipline, and effort.”

― Jesse Owens

Creating a strong financial foundation in 2023!

The time has come to take back control of your life and your finances. The goal is to control the things we can. We have been through a lot of financial stress the past couple of years, and now is the time to get back on track.

Let’s us not just focus on inflation, because we cannot predict what it will be. We will not worry about the market, because it will do what it does. What we can do is control the things we can control, such as how much we have for an emergency, where we invest our money, how much money we put away, paying off debt, and more.

85 percent of women control their families’ day-to-day finances, but few control long-term financial planning decisions.

(UBS Media)

What can we do this year to prepare ourselves to win the money game.

• Calculate your net worth

Net worth is the amount of assets that you own minus liabilities. The higher your net worth is, the healthier your finances are. Having a negative net worth means your liabilities are more than your assets. Knowing your net worth is important for a clear picture of where you are now. This month your goal is to track down all your debt and your assets to calculate your current net worth. The goal is for that number to increase monthly.

Assets may be tangibles or intangibles. Tangible assets may include home, car, jewelries such as gold, diamonds, or silver while intangible assets are more like ideas or patents. Assets are useful to you because you can either spend them, sell them, or use them as security on a loan. Liabilities are your debts, or amounts of money you owe to someone else. Liabilities are expressed as either short-term or long-term and as secured or unsecured.

Short-term liabilities are generally paid off within one year. Long-term liabilities usually take longer to pay off. Secured liabilities, such as mortgages or auto loans, require you to pledge a specific asset to ensure payment of the debt. Unsecured liabilities are based on your personal creditworthiness. Take the time to calculate your net worth several times a year. This helps you to gauge your financial progress and provides a good first step to assuring your future is financially sound.

• Track all your expenses:

This year make it a habit to track your expenses every day and if not at least every 30 days. Track every dollar spend as close as you can. It’s good to carry with you a journal specifically for that purpose.

• Pay yourself first:

401(k) and IRA contribution limits have gone up for 2023. For 401(k)s, the limit is $22,500 for investors younger than 50 and $30,000 for those 50 and older. Contribution for IRAs have gone up to $6,500 for those under 50 and $7,500 for that 50-plus. Adjust your finances accordingly and start putting money away for your retirement. Something is better than nothing. Don’t assume because it’s little it doesn’t matter.

Make it a habit to pay yourself first and set it for automatic. Don’t assume you will have enough left to save at the end of the month. Do it first and do it consistently. If you save for yourself everything else will be okay, but if you have nothing for yourself, it’s hard to help others. Make it a habit to put away at least 20% of your income if you can. That is how we increase our net worth

• Know where you money is: Find out where you currently have old investment or bank accounts and move them if needed – old 401k’s

Daily: You want to check your goals daily. Educate yourself and track your spending. Put away important reciepts, stay away from impulses purchases.

Weekly: Check your budget weekly, or at least every month. Create shopping list.

Monthly: Check your net worth and adjust it. maybe you pay off some debt or add more money to your investment. Check how much money you saved for the month, review the budget.

Quarterly: Check for expenses that were not planned, look over the emergency savings, look for new opportunity to increase income, update your net-worth.

Yearly: Check your investment portfolio and strategy and see what worked and what didn’t. Set new goals, and increase savings such as 401K and Roth. Have all the necessary paperwork such as your Will and Power of attorney.

“Financial freedom is available to those who learn about it and work for it.” 

― Robert Kiyosaki

Check our blog post on how to save money on groceries here. Read more

Disclaimer: All pieces of advice from the website are our opinion. We are not financial or estate planners, tax advisors, budget planners, credit counselors, lawyers, or debt managers. For related advice, individuals should consult an appropriately licensed professional. Before investing, an investor should consider a mutual fund’s risks, investment objectives, and fee expenses. All tax rates and interest percentages are hypothetical. Savings and CD accounts are generally FDIC insured up to $250,000. The creators, producers, participants, and distributors disclaim any liability or loss arising from advice herein.