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5 Key Tips to Be Better with Money in 2023 Thumbnail

5 Key Tips to Be Better with Money in 2023

Insights Investment Retirement Planning Investing

The new year is right around the corner and it is a great time to start looking ahead.  What can you do to get the new year off to a good start?  Today we offer 5 key tips to be better with money in 2023.

Watch Now: 5 Key Tips to be Better with Money in 2023

  • 0:00 Intro
  • 0:17 Welcome
  • 0:30 Tip 1:  Look at your retirement savings
  • 2:11  Tip 2: Look at your spending
  • 3:25 Tip 3:  Think about charities
  • 4:11  Tip 4: Retiring soon? Update your plans
  • 5:55  Tip 5;  Tune out financial media
  • 7:46 Final Thoughts
  • 9:09 Outro

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Tip 1:  Look at Your Savings

Contribution limits for both IRAs and company-sponsored retirement plans are increasing in 2023.   

Plan Type
2023 Contribution Limit
Over 50 Catch-Up Limits
IRA
$6,500 (increase of $500) $1,000 (no change)
401(k), 403(b), 457 Plan $22,500 (increase of $2,000)
$7,500 (increase of $1,000)
SIMPLE IRA
$15,500 (increase of $1,500)
$3,000 (no change)

Starting at the beginning of the year makes it easier for you to adjust your contributions to take advantage of the new limits.  Maybe this is the year you are now eligible to make the catch-up contributions (meaning you are going to be 50 years old).

It is also a good time to see if there are any big expenditures you might have coming up.  The longer you have to save for things, the easier it is.

Tip 2:  Look at Your Spending Habits

For many, reviewing household spending is a low-priority task.  In these next few days, it may be a good idea and glance through your credit card statement and checkbook to see where the money is going. 

One of the first places to look for opportunities to reduce unnecessary spending is to look at subscriptions.  The world has changed in the past few years, and those ongoing service contracts can start to add up.  Ask yourself:

  • Am I still using this on a regular basis?
  • Is there any value being added to my life?
  • How would things change if I canceled this service?

You may find that some little changes can quickly add to a significant number.

Tip 3:  Think About Charitable Donations

This tip focuses on those who are at least 70 years old.   Qualified Charitable Distributions from your IRA are a great tool to reduce your income tax bill.  The money sent directly to a charity is not reported as income.  Many charities struggled in 2022 as fears of a recession entered the minds of Americans.  Revisiting this strategy can save taxes and help a cause or organization important to you.

Tip 4:  Is This the Year You Retire?  Take a Deep Dive Into The Numbers

If you are thinking this is the year you retire or maybe even if next year is the year, it is time to look at the details.  What will you be spending in retirement? How much income will you receive (and from where)?  How are you positioned to deal with financial risks? Dust off that plan or if you haven't, contact an advisor to create one.

Tip 5:  Tune Out the Financial Media

The financial media can be a source of stress and anxiety for many.  They tend to sensationalize every move the stock market makes.  It serves their purpose but it rarely does anything good for you.

The financial media doesn't care about your long-term success.  They care about views and clicks, and hyperbole tends to increase those numbers.  We often see too many people getting caught up in the news and what is on TV.  As a result, they spend more time worrying about things outside of their control.   

Far too many times, that increased stress and anxiety can lead to bad decision-making.

Looking for More Help?  Connect with an Advisor Near You

Whether you need help looking at the numbers, need someone to take a deep dive into your situation, or just provide a second opinion on what you are doing, you can connect with one of our advisors below.

Appearing in this video...

Julie Daley, RICP®

Julie enters her 20th year as a financial advisor in 2023.  She is located in St. Clairsville, Ohio.  

Vince McManus

Vince has been a financial consultant for 5 years.  He works with clients in Parkersburg, WV, and Athens, Ohio.

Neal Watson, CFP®

Neal is a Certified Financial Planner­™ Professional in Marietta, Ohio.  He has been a financial advisor for 27 years.