5 Financial Resolutions for 2023
Are you planning to improve your personal finances in the New Year? As a Texas homeowner, you should start strategizing your financial obligations now so you can properly manage your budget for the year ahead. Our team has pulled together these 5 tips to help you hit your 2023 financial goals.
1. Create a Household Budget
Creating a household budget for the new year is more helpful than most people realize, especially during times of high inflation. It allows you to better understand how much money you should spend each month and exactly what you should spend it on.
To create a budget, start by evaluating your average monthly income and subtract your fixed expenses, such as your mortgage, car payment, phone bill, insurance, or any bill set at the same price each month. The amount left over is used for your flexible expenses, payments that vary from month to month. These might include your groceries, clothing, travel expenses, etc. Often, if this budget is properly understood in the beginning of a new year, it is easier to make financially responsible purchases.
2. Build Your Emergency Fund
Try to ensure you have enough money saved up in case of an emergency. Being stuck in a tough financial situation, without any savings to fall back on, can be problematic and worrying. If you have recently dipped into your savings, this is the time to replenish the fund and plan on how you will do so throughout the year.
3. Pay Off Any Debt
Whether you have a large or small amount of debt, by consolidating the amount of money you owe, you will simplify your financial burden and stress. For example, making higher monthly payments that are affordable for your budget will leave you with less accrued interest to pay off over time. Another way to help pay off debt is by using any additional income such as bonuses or raises from work to put towards your payments. By doing this, you are paying off your financial obligations and you will have more financial freedom in the long run.
4. Track Financial Goals
If you have long-term financial goals, it is important to track them year by year to make sure you are on the right path. To do this, double-check your savings and investments to ensure they are where you want them to be. If they are not, take this year to find ways to invest more by adding small amounts to your savings or retirement accounts. This can make a big difference as interest compounds through the years.
5. Pay Off Property Tax Bill
As a Texas property owner, you are most likely aware that Texas has one of the highest property tax rates in the country. Depending on the specifics of your mortgage, this property tax bill often comes due in one large lump sum. This makes it sometimes difficult to pay your property tax bill on time. However, if you are financially capable of paying your property taxes, avoid letting your bills go past the deadline of January 31st. If you were blindsided by a big bill this year, plan for the year ahead by dividing that amount by 12 and saving that much each month. Paying your Texas property tax bill on time will prevent you from accruing any late penalties or interest fees that can put a damper on your financial goals for the new year.
If you are worried you are not financially capable of paying your property taxes on time, it is still important to have a plan. Reach out for other options by contacting your county tax office, family or friends, or talk to an expert. By properly addressing the issue and coming up with a plan, you are still efficiently managing your financials in the new year. For any additional information on understanding your options when it comes to property tax repayment – contact Johnson & Starr.