Financial To-Dos for 2023

2022 was a year of ups and downs, especially for the markets. As we look ahead to 2023, you should consider several financial to-dos.

With inflation running high in 2022, you likely spent more than expected on restaurants, groceries, utility bills, gas, and more. A priority for 2023 may be adjusting your spending to reflect these rising costs.

In an effort to reduce inflation, the Federal Reserve raised short-term interest rates several times in 2022. That may have translated to higher monthly payments on some of your loans and debts. As a result, it may be a good time to check up on your monthly expenses. A typical family has some monthly expenses that may be tied to fluctuating interest rates, including credit cards. It’s easy to lose track of how much your monthly expenses are increasing due to interest expenses.

If you had to tap into your savings in 2022, it might be time to top it up. In general, your emergency savings should cover 3–6 months of expenses. An emergency account is designed to help you pay for unexpected expenses so you won’t have to sell an investment at an inopportune time.

With the increasing limits to retirement plans for 2023, now is an excellent time to review your retirement contribution strategy. Be sure you understand the role your employer-sponsored plan plays in your overall retirement strategy.

We hope you had a wonderful holiday season and are looking forward to the start of a new year. We are always here for you and welcome the opportunity to discuss these and other financial to-dos for 2023.

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