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5 tips to get your finances in order at the start of the year

The beginning of the year always offers great opportunities to optimally position yourself with your finances. With these simple tips for a successful cash clearance, you will start 2023 financially full of energy.
Author: Olga Miller

Happy Holidays? Do you slide well? Were you in the mountains, at home or did you travel? Anywhere, I hope you had a great time.

So now new year, fresh energy. What awaits us? I don’t know if you believe in horoscopes or zodiac signs. As an economist I am very reserved. Still, I was curious and to be honest I was a bit bored in the mountain hut with the high temperatures and the rather meager snow. So I browsed online. For anyone interested, according to the Chinese horoscope, 2023 is the year of the rabbit (in the element of water) and should bring a lot of romance, kindness, empathy and a more harmonious togetherness, because it should all be easier for us to be honest and communicate constructively. I wouldn’t base my financial plan on a horoscope, but the outlook is bright.

The start of the year offers many opportunities to set yourself up fresh and new for the year or to change one or the other. For one it’s more fitness, for the other digital or other detoxing and there are also a whole range of options for an energy kick for finances. Often less, but pragmatically and consistently implemented, is much more than a long list, which then only stresses you out because it is not possible. That’s why I’ve put together a bucket list of things that are really worth tackling in January because they can save you money or time or make you money in the long run.

So that nothing is left behind, it works best if you set aside time in January for your cash cleanup. You don’t have to be lonely behind your desk, but it can also be an afternoon with your partner and family to talk about money together. Here are some points worth reviewing:

  1. Your accounting, tools and documents in order: Especially at the beginning of the year, when all interest rate confirmations come in, it is easy to create order. list tools and accounts you use, Save documents for the tax return now. Take a critical look at your list: do you need all of your tools, maybe you don’t have enough, or are there slow vendors that you might never use and are costing you money? Credit cards are often such candidates… If so, let’s remove them. Studies have shown that with increasing specialization in the financial sector, it is often cheaper to use specialized providers for different purposes instead of generalists. For example, a possible model could be: a provider for the salary account, a savings account for the nest egg, a savings account for planned expenses such as holidays, a specialized provider for Pillar 3a and, if you invest, one or more providers for the investments. Also important: check access rights so that anyone who should have access knows how to access the accounts in an emergency.
  2. Set goals, update financial plan: Reviewing the financial plan once a year will help you stay on track in the long run. Has something changed in your life? Do you have any new plans for 2023? Are things falling off? All this is also suitable for a good conversation for two. Wrap it all up in a simple financial plan and set up standing orders accordingly, e.g. for the holidays or purchases you want to make. Are you more the spontaneous type and don’t like committing so early in advance? However you tap, make a part of it each month through a standing order if possible. Then no budget hole for things like B. Holidays or new purchases.
  3. Adjust budget, check standing orders: boring but necessary. Do you have a gaping hole in January? It is all the more important to look at your budget. Ideally, the budget should reflect your financial plan. Branch out everything that needs to be paid, such as taxes, insurance, pensions and savings for your long-term goals, regular investments, etc. with standing orders. You can also use the check for a cleaning, time and time again unwanted and forgotten money guzzlers like to sneak in. View the credit card statement and your subscriptions with Apple and Google. Do you actually never read the online newspaper? Then the subscription does not have to be renewed automatically.
  4. Make the most of the savings potential with prepayments and price comparisons: There are discounts or interest for health insurance, taxes and many other things, if you pay in advance. It’s worth checking for bigger positions that you’ll have to pay for anyway. The same goes for insurance and financial compensation. Now that you’re picking up the documents, Check what your investments, accounts and financial matters are costing you and whether you are overinsured or have savings potential with eg B. another insurance option. Do the cost comparison for finance. Switching financial providers is now very straight forward and can save you a lot of money in the long run without you even noticing. There are several comparison calculators, e.g. B. at Moneyland.
  5. Set up a performance diary: No, this is not an esoteric concept and you don’t have to run the next marathon. Your “achievement journal” is a notebook, piece of paper, or whatever you choose to use, where every two weeks or as needed, but at least once a month, you write down what you have achieved during the period in the job. Why does that make sense? During the annual evaluations you often remember very few things that you actually did. By having notes here, you save time, negotiate better during the interim salary negotiations or you can show practical examples at the next job interview. It’s also motivating and it’s totally okay to pat yourself on the back every now and then.

You will see, after such a money clearing day you feel just as good or better than after a detox. To make sure you don’t miss out on the fun of the whole financial cleanup, you can also turn some of the newly saved money into a reward for you along with family and friends after the cleanup is complete.

How do you optimally position yourself and your finances for 2023? Do you do a special cleaning or are you disciplined all year round? 😉

Author: Olga Miller

Source: Blick

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