The start of a new year is a good time to consider the financial goals you've set for the next twelve months. Do your plans include purchasing a home or building an emergency fund? Perhaps you'll be welcoming a new child into your household or even sending one off to college. No matter the size of your 2023 financial goals, we have a few tips to help you in your journey towards reaching them.

Stick to your budget
It may sound simple, but following a budget system that fits your individual needs is one of the most important fundamentals of mastering your finances. Simply put, a budget is a system that compares your income against expenses. Once the difference has been determined, a plan to manage spending and achieve personal goals is then developed. Think of it like a roadmap to guide you from place to place financially. No matter what your financial goal is—buying a house, paying for college, saving more money, etc.—a budget is an essential tool.

Check in regularly
Whatever goals you are working toward this year, be sure to schedule periodic check-ins to track your progress. Doing this can help in a variety of ways. Taking a detailed look at your finances on a regular basis can increase your control over your finances as you’ll know precisely where and how your funds are being spent. Reviewing your budget consistently can also help increase your financial accountability while curbing impulse shopping.

Make adjustments as necessary
While you are checking in on your finances regularly, it’s important to stay flexible. Checking in regularly will help you identify strengths and weaknesses in your budget, and allow you to make adjustments accordingly. This can help in building financial resilience as well as increase your confidence in managing your finances.

Build in rewards
As you prepare your finances for the New Year, don’t forget to build rewards into your budgeting. Sometimes referred to as “fun funds,” this is money set aside in your budget specifically for entertainment and enjoyment purposes. In fact, statistics show that you are more likely to stick to a budget when you make room for things you enjoy. Plus, it can even help prevent overspending and increase your motivation in achieving your financial goals! How you choose to incorporate them into your budget is up to you, but the key is to reward yourself for prioritizing your financial wellbeing.

Building a budget that works for you is an ongoing process, and it’s important to bear in mind that financial wellness is a journey rather than a destination. Financial wellness is not one-size-fits-all, and you may find that incorporating some or all of these four tips into your budgeting routine can help in achieving your goals. Regardless of the time of year, prioritizing your finances should always be a top priority. And if you need assistance in making a plan to achieve your financial goals, our team of dedicated financial professionals are here to help. Contact us today to start the conversation.

This article is for general information only and not intended to provide specific advice or recommendations for any individual.

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