So, how lofty are your New Year’s resolutions? As much as I appreciate dreaming big, I know many of those resolutions are likely to fall by the wayside over the next month and some may even fizzle out by the end of this week! What if I told you that you could take a step forward in your financial life in just five minutes? Seriously … I’m all about making it doable.
While I’ve certainly invested many hours into my own financial life, a number of major steps forward have come in fewer than five minutes: reading a friend’s blog article about “pancakes & budgets” which ultimately inspired the money dates that changed my marriage, moving my retirement account balance from a traditional investment fund to a socially-responsible investment fund, setting up a giving fund and putting in $50 each month.
If you’re willing to invest five minutes that could bring a significant long-term benefit to your financial well-being, check out these goals and commit to trying one of the two options listed underneath:
If you want to take the stress out of money conversations with your partner in 2023 …
Decide on the date, time, and place for your first money date. Put it on the calendar and agree together that you will make it a priority.
Break the ice by asking your partner this question the next time you’re doing dishes together in the kitchen: If you received $1,000 right now, what would you do with it and why?
If you’re longing to increase your income in 2023 …
Use a tool like salary.com to see if you are currently being paid equitably by your employer.
Brainstorm what side hustle you might want to start. Susie Moore says there are three key components to a side hustle: it’s work you love, that you’re good at, that people will pay you for. Begin by making a list of the things you love to do, then cross anything off that list that you aren’t good at, and then circle anything that’s left on the list that someone might pay you to do. While this may not be your final idea, this activity will at least get you started in the right direction.
If you’re planning to up your debt-pay-off game in 2023 …
Use Nerdwallet’s debt payoff calculator to see how long it will take you to pay off your debt at your current rate. Have an extra minute or two? See how adding an extra $20, $50, or even $100 per month to that minimum payment changes your timeline.
Take a quick stroll through your budget to see where you might be able to find some extra money to put towards your debt. You might cancel a subscription, eat out one less time per month, or decide to shop at a cheaper grocery store. Find at least one expense that you could trim or cut on a monthly basis until your debt is paid off. Don’t have a budget? You can do the same activity as you review your most recent credit card or bank statement.
If you’ve got some big savings goals up your sleeve in 2023 …
Break down that big goal into bite-sized pieces by using Nerdwallet’s savings goal calculator.
Decide now how you’ll handle extra money that comes through your life this year, such as a bonus, salary increase, tax refund, or gifts. For maximum impact, designate a percentage that will go towards your goal. For instance, when extra money comes into my budget from my side hustle, I set aside 30% for taxes, put 10% in our giving fund and 10% in my “Grace fund” (so I can buy something fun), and the remaining 50% goes towards our house down payment.
If you’re looking for opportunities to be more generous in 2023 …
If your employer has a corporate match, sign up so you can double the impact. Not sure if that’s something your employer offers? Check the employee handbook or on the benefits page for your organization.
Have an organization that you care about that you’ve just given to sporadically over the course of the year? Commit to supporting it regularly through a monthly sustaining gift. Take your generosity to the next level by covering any associated credit card fees.
If you’re determined to spend without guilt in 2023 …
Set aside a small amount of money each month to use as a “spending fund” and populate that fund with a monthly contribution from your paycheck as well as a percentage of any extra money that comes in throughout the year.
Challenge yourself to make a list of things you would buy for yourself if money was no object. Take three minutes to make a list of as many things as you can think of. Keep each item under $50. Spend the remaining two minutes looking through the list. Circle the items that align with your values. From the circled items, pick one item that you’ll go out and buy.