{"id":2780,"date":"2023-01-09T09:43:20","date_gmt":"2023-01-09T09:43:20","guid":{"rendered":"https:\/\/kabayanremit.com\/blog\/?p=2780"},"modified":"2023-01-09T09:43:20","modified_gmt":"2023-01-09T09:43:20","slug":"financial-new-years-resolutions-2023","status":"publish","type":"post","link":"https:\/\/kabayanremit.com\/blog\/finance\/financial-new-years-resolutions-2023\/","title":{"rendered":"Top 8 financial New Year\u2019s resolutions for 2023"},"content":{"rendered":"
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The new year is here, and now is the perfect time to start looking ahead and planning your finances for 2023. Are you happy with how you\u2019ve managed your spending in the past year, or is there something you must change? Now is the time to start reflecting.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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While New Year\u2019s resolutions may seem clich\u00e9, starting good habits is always great, especially regarding the money you\u2019re making as an overseas Filipino worker (OFW).<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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Here are the top eight ways you can better manage your finances this new year:<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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  1. Conduct a regular net worth check-up<\/a><\/li>\n
  2. Remember to save for a rainy day and for retirement<\/a><\/li>\n
  3. Review your investments<\/a><\/li>\n
  4. Work on paying off your debts<\/a><\/li>\n
  5. Spruce up your credit score<\/a><\/li>\n
  6. Look at your insurance options<\/a><\/li>\n
  7. Review your beneficiaries<\/a><\/li>\n
  8. Use safe financial services<\/a><\/li>\n<\/ol>\n\t\t<\/div>\n\t<\/div>\n\n\t
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    Conduct a regular net worth check-up<\/h3>\n\t\t<\/div>\n\t<\/div>\n\n\t
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    \"\"<\/div>\n\t\t<\/figure>\n\t<\/div>\n\n\t
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    A good indicator of financial health is your net worth. According to Investopedia<\/a>, net worth is the \u201cvalue of the assets a person or corporation owns, minus the liabilities they owe.\u201d<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    So how do you figure out your net worth?<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    At the start of the year, take the time to go over what you\u2019ve acquired over the last 12 months. Did you get more assets or more debt? This gives you an idea of how well you\u2019re doing financially.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Using the below formula and examples will also help:<\/p>\n\n\t\t<\/div>\n\t<\/div>\n[vc_table vc_table_theme=”classic”]Assets,Liabilities|Savings%20account,Credit%20card%20debt|Checking%20account,Loans|Investments,Mortgages|Properties,Accounts%20Payable[\/vc_table]\n\t

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    In your calculation, you\u2019d want to have a positive net worth, where you own more than you owe.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    This is also a time to review your spending and saving habits. Looking at your calculation, does it look like you need to tone down on expenses in the coming months? Is there a financial goal that has moved up in your list of priorities? A net worth check-up would help you decide.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Now that we\u2019ve mentioned financial goals, it\u2019s time to move on to the next item in our list of financial New Year\u2019s resolutions; saving.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Remember to save for a rainy day and for retirement<\/h3>\n\t\t<\/div>\n\t<\/div>\n\n\t
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    Just because you\u2019re earning, this doesn\u2019t mean that you should stop keeping tabs on your savings. You\u2019ll never know when you need extra cash for an emergency at home, and you\u2019ll also want to save enough to support yourself when you retire.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    If you haven\u2019t yet, set aside a monthly amount from your salary and put it in a separate savings account so you aren\u2019t tempted to spend what you should be saving.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    If you already have enough money to spare, you may be ready to open a Pag-IBIG MP2 account or an SSS PESO Fund account. Stay tuned for our upcoming articles about these programs!<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    We’ve also put together this useful guide of money management tips for OFWs. Click here<\/a> to have a read.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    If you\u2019re ready to go beyond government-guaranteed savings programs, you may have already started investing.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Review your investments<\/h3>\n\t\t<\/div>\n\t<\/div>\n\n\t
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    If you already have an investment portfolio, it would be a good financial New Year\u2019s resolution to build the habit of conducting a regular investment review.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    See where your money is performing or underperforming and be open to changing things up and moving funds around to maximise your portfolio.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    If you\u2019d like to learn more about the different types of investing for OFWs, click here<\/a>.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    As Andrew Schwartz<\/a> of Investopedia said, \u201cBy rebalancing your portfolio to its original or updated asset allocation, you take steps to lock in gains from sectors with the best returns and purchase shares in the sectors that have lagged behind last year\u2019s leaders.\u201d<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    But, as you do with any financial decision, make sure to do your research and talk to an expert if needed.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Now, if you aren\u2019t ready to invest, you should instead take the time to cut down your liabilities.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Work on paying off your debts<\/h3>\n\t\t<\/div>\n\t<\/div>\n\n\t
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    If you swiped your credit card a lot recently, it\u2019s time to start paying the bills.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Regularly paying and managing your debt are good New Year\u2019s resolutions because doing so can help reduce stress and keep your financial goals within reach.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    For credit card bills, explore ways to minimise costs. For example, you could transfer your balance to a new credit card with lower interest rates. You could also apply the debt snowball or debt avalanche strategies<\/a>.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    In a debt snowball strategy, you start small and save up to pay the cheapest bills first. Once you\u2019ve paid out that first bill, you can use any extra money you\u2019ve saved to go up and pay the second cheapest bill.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    As you get the hang of it, you can slowly build your confidence to pay the bigger bills, with the amounts \u201csnowballing\u201d until you pay off the most expensive amount you owe.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Note that you don\u2019t always have to start small. If you have high-interest credit card debt, it would be good to pay that off before the interest makes it too expensive.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    With a debt avalanche strategy, you\u2019ll work on paying your most expensive, high-interest bill first to keep the costs down and wallet-friendly.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Now, debt isn\u2019t limited to credit card bills. If you\u2019ve been paying out a few loans, you may want to consider a debt consolidation loan.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    \u201cDebt consolidation loans allow borrowers to combine their debts into one simple loan with lower interest rates,\u201d said Matt Richardson for CBS News<\/a>.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Remember: The goal is to keep costs down.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Paying a debt consolidation loan would also give you a deadline, so you can say goodbye to remaining balances within a clear timeframe and without paying more interest.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Along with debts, there is another thing you need to add to your financial New Year\u2019s resolutions; Credit score<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    Spruce up your credit score<\/h3>\n\t\t<\/div>\n\t<\/div>\n\n\t
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    We\u2019ve been talking about paying your debts, but the reason why this is so important and why it should be one of your New Year\u2019s resolutions is because how you manage your debts affects your credit score.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    According to the United States Consumer Financial Protection Bureau<\/a> (CFPB), \u201cA credit score is a prediction of your credit [behaviour], such as how likely you are to pay a loan back on time, based on information from your credit reports.\u201d<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    On a scale of 300 to 850, a good credit score<\/a> is from 690 to 719. Maintaining these scores opens doors for you. It makes it easier to get loans, better credit card interest rates and deals, good insurance, and even a mortgage for a home.<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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    So, what should you do to improve your credit score? Here are some ways:<\/p>\n\n\t\t<\/div>\n\t<\/div>\n\n\t

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