“New Year, New Me” is a thought that will likely cross your mind several times as we launch 2023. When it comes to budgeting, it’s often easier said than done. Come March, hopefully, you haven’t forgotten about your financial goals.
“I think like when the year starts, it kind of kicks me in the butt to focus on it and be consistent with it,” said Maria. She told NBC 7 Responds that as a law student she really needs to have control of her money. “That’s an ongoing thing, especially here in San Diego.”
Saving money, spending less and improving credit scores are common financial resolutions that people think about this time of year. It can be daunting, especially if out the gate, you’re in the red after heavy holiday spending.
“Find a budgeting app, if you like apps,” said Felipe Arevalo who works for the San Diego Financial Literacy Center. “Excel Spreadsheets, a piece of paper, whatever you need to do, but, you know, start a budget.”
Get top local stories in San Diego delivered to you every morning. Sign up for NBC San Diego's News Headlines newsletter.
He says you absolutely need a budget because you can’t change your spending habits if you don’t know what they are.
“You can’t establish good credit, you can’t save, you can’t invest if you can’t just manage your money,” Arevalo said.
If you’re trying to save more, Arevalo recommends that you have part of your paycheck go straight to a separate account.
“Automate your savings, make it as easy as possible to save and make it harder not to,” he explained, adding that you could do that by reaching out to your Human Resources Department.
New Year 2023
How about debt? What if we want to knock it down as much as possible and maybe even be done with it in 2023?
Well, the most obvious and sometimes most difficult step is the first one. Step spending so much!
“It’s really hard to pay off debt if you continue to use the card,” said Arevalo as he also acknowledged that using credit cards is more prevalent due to the increase of prices pushed by inflation.
Arevalo says this is where budgeting comes in. “You want to make sure you have that money available so that you don’t need the cards to kind of supplement your income.”
Also, be smart about what you’re buying. You might be able to save by buying older models or styles.
“Certain things can be both a need and a want. You may need a laptop but you don’t need the most flashy, largest laptop you can find,” Arevalo said with a knowing smile.
Finally, what are you subscribed to? If you rarely use something, consider canceling it. Even if it’s just a few dollars, those expenses can quickly add up.
Best of luck with your financial resolutions!
