If you are looking to improve your finances in 2023, we have got you covered. There is no denying that now is the time of year when a lot of people think about their goals and what they hope to achieve over the months ahead. One thing you should definitely want to achieve is financial freedom. With that being said, below, we are going to take a look at some of the best financial planning & investment tips for the year ahead to give you a helping hand.
- Review your credit card debt – There is only one place to begin when it comes to your finances, and this is with any debt you may be in. The aim for 2023 should be to pay as much of this debt off as possible. Therefore, you need to sit and work out how much you can afford to pay off each month.
Start by paying off the most expensive credit card debt. This is not necessarily going to be the biggest debt. It could be the debt with the highest interest rate. Paying off the highest interest rate debt is beneficial because it means that it is going to cost you less overall to remove your debt.
- Review your insurance policies – Now is also a good time for you to take a look at your insurance policies. There are a number of different insurance policies that are available today, and so having the right insurance plans will depend on your unique circumstances. However, a good place is to start with your life insurance plan. You can then take a look at any casualty, automotive, and property insurance plans that you may have.
The key is to look at your policy to make sure that it is still the right one for you. The last thing you want to do is go into 2023 being underinsured without realising. Equally, you do not want to pay extra for a policy that you do not really need.
- Build a succession plan if you are a business owner – You may not be thinking about leaving your company in 2023. However, this does not mean that you do not need a succession plan. This plan is critical in ensuring you can phase yourself out of the company effectively when the time does come to move on.
After all, there is no telling when you may need to step away from your business, and a succession plan is going to enable you to do so in the most efficient and profitable manner.
- Get an investment review – Another way to make the most of your finances in 2023 is to get an investment review. You need to make sure that your retirement investments and your personal investments are balancing your financial needs with your risk-taking ability.
This is where a lot of people are going wrong with their finances today, as these are out of sync. Looking for a company with a considerable amount of experience who can carry out an investment review is the best route for you to go down.
- Make sure you are taking full advantage of tax credits and deductions – This is especially important when you consider the fact that all self-employed people are going to be submitting their tax returns within the next month. You need to make sure that you fully assess the tax that you are currently paying to make certain you are taking advantage of all of the different tax breaks that are available to you.
There are a lot of people out there today that are paying way too much tax because they have not researched all of the different deductions that they are eligible for. The UK Government website is really helpful in terms of making you aware of what you can and cannot claim for, as well as giving you all of the calculations you need for this. Of course, you can also consult with financial experts and they will be able to review this for you and give you their expert advice.
Hopefully, you now have a better understanding of some of the best tips when it comes to financial planning and investment for 2023. There is no denying that we would all like to finish 2023 in a better financial position than the one that we are in now, and the advice that has been provided above can help you to do this.