Making a few changes to your finances might be one of the most important New Year’s resolutions that you make this January. According to Andre Deleo, President and Principal Broker at Morgix, 2023 could be challenging for your finances.
“Financial pundits, both federally and provincially, have made it clear that a recession is imminent. During a recession, borrowing ability will often become more restrictive. This means that consumers need to prepare themselves now,” he says.
Three Ways to Keep Your Finances Healthy in 2023
Andre focuses on three main areas where individuals and families can take action on now to ensure a more successful 2023.
Know Where Your Money is Going
Small, recurring costs can really add up without us noticing. Andre suggests taking a careful look at all our bank and credit card statements to find areas that can be trimmed.
“With the current climate of costs rising almost daily for our everyday items, identifying where your money is going on a monthly basis is crucial. I can't tell you how many times we go over bank statements with our clients and find hundreds of dollars per month in savings by finding small chargers that continuously come out of someone's account without our clients even recognizing it like annual app subscriptions, multiple gym memberships, food delivery service charges, etc.,” he says.
“Also, understand your credit card billing cycles and know when interest is being applied to your balances. Once you know what is coming in and out of your account you can decide what isn't needed.”
Consider Consolidating Credit Cards
According to Andre, carrying balances on a number of credit cards can be a problem.
He explains, “For those juggling multiple credit cards and balances, especially around the holiday season, it's a good time to look into what consolidation options are available. Combining everything into one monthly payment will allow you to manage your debts more effectively and allow you to pay them down more efficiently.”
Address Problems Before They Happen
If you do get into a difficult financial situation, Andre says that being proactive is incredibly important.
“If a homeowner is struggling this holiday season and finds themselves unable to make their mortgage payments, it is very important to let the mortgage holder know of any issues before they happen. Be upfront, and work with them, they may have programs for you,” he says.
In the end, keeping on top of your finances starting at the beginning of the year will be one of the best resolutions you can make.