Just days away from ringing in the new year. It’s a good time to start thinking about how to set yourself up financially for 2023.
The cost of nearly everything has gone up, including groceries and gas. There have been several interest rate hikes. And some economists say we could see a worsening recession in the coming months.
In response, financial experts are urging people to start saving and creating an emergency fund.
Mary Macdonald of Personal Path Financial Planning in Durham said people should be looking at their finances and finding places to make cuts.
Also, be bold, she said. Ask your boss for a raise if you find you’re just breaking even to pay your bills. And start with small changes that make a big impact.
“Talk with the bank about opening up a separate savings account and put that money to the side,” Macdonald said “Really set that away so it becomes your emergency fund. And creates the habit to growing that over time. Really pat yourself on the back when you’ve made that accomplishment and then stretch to the next goal.
It sounds daunting but Macdonald said people shouldn’t be nervous heading into 2023 – but instead should be setting goals for the year.
