5 Financial New Year's Resolutions You Can Tackle in 2023

Happy New Year!

As we step into a new year, it's a great time to reflect on our financial goals and set some New Year’s resolutions to help us build long-term wealth. Here are some financial resolutions you can make to start generating long-term wealth in the coming year:

• Create a budget and stick to it: The most important thing you can do to start building wealth is to manage your money effectively. Creating a budget helps you understand where your money goes and identify areas where you can save more. This might be especially relevant this year, with housing and food prices rising so much. You’ll likely be surprised how much you spend when you lay it all out!
• Start saving for retirement: It's never too early to start saving for retirement. Whether you’re just starting your career or you have extensive experience, it’s important to start setting aside money for your retirement years. If you’re young, it might be most beneficial and flexible to regularly invest in stock funds through a Stock Savings Account that you label "retirement." For many, naming the account "retirement" can be a good mental trick for discipline, even though there are no formal restrictions. If you’re closer to retirement age, consider opening a pension account like an IPS, where funds are locked until you retire. In any case, regular contributions are key. Automatic savings plans are great for staying consistent.
• Diversify your investments: Diversification is key to reducing risk in your investment portfolio. If you buy a mutual fund, you're already diversified. A global index fund contains 1,000–3,000 stocks, so it can stand on its own. However, you might consider investing in a mix of assets, like stocks, bonds, and real estate, to spread risk further and improve your chances of long-term success.
• Invest in your education: Investing in your education can pay off over time by helping you acquire new skills and increase your earning potential. Consider taking courses or pursuing a (new) degree in a field that interests you and offers good job prospects.
• Generate extra income: In today’s gig economy, it's easier than ever to start a side hustle and earn extra income. Consider finding a way to monetize your hobbies or skills, or take on freelance or consulting work on the side. Become a hustler on Tise or Finn—both selling and renting can be lucrative! If you have the means, renting out property or a secondary apartment is a great source of passive income. If you're not there yet, just keep saving and investing to reach that goal!

By setting these financial resolutions and sticking to them, you can begin building long-term wealth and achieve your financial goals.

Good luck with everything 2023 brings!

/Madeleine