MRS.WISE FINANCIAL RESOLUTIONS FOR 2023

As I am writing this personal article on my “financial” journey as a freelance-working mom, I reflect on what the 2-year (and still counting, for I believe it is not yet over) pandemic has taught me as far as handling my finances is concerned.   The start of a new year is the perfect time to set our goals related to personal finances. Starting the year with a clean slate and creating a solid plan for money matters is a big help to reach your savings and investment goals to achieve financial success. I hope my tips will help you make 2023 the best year ever in terms of savings and investments!  

AVAIL OF BIG DISCOUNTS BY PAYING TAXES EARLY.

At the end of the year, I always    make it a point to save money to pay for our real estate taxes early, that is during the first    month of the year. In doing so, I get 20% discount every year by diligently paying our taxes early.  The discount that I get, goes directly my savings account, that earn interest in the   long run. 

PAY OFF CREDIT CARD DEBT

I use my credit card for all purchases related to the Holidays. By doing so, all the points I earn, I use to pay off my credit card annual fee. The   remaining points goes to buying things as a reward for myself.   

BUILD AN EMERGENCY FUND

It is of utmost importance that everyone has an  emergency fund, which is an ideally 3-6 months of your monthly expenses.  During the  pandemic, when events and TV shows were put to a halt, I depended heavily on my emergency fund. 

ONLINE VS IN-STORE SHOPPING

The pandemic has forever changed our online  shopping behavior. Most people lessen depression and anxiety by doing online purchases, I used it as an opportunity to save. I only shop online when there is FREE shipping, big discounts compared to buying things in store and when I get vouchers or coupons for buying in bulk. Online shopping also help me save more because I do not have to pay for gasoline to go to the store and the time spent in driving and queuing. Time is much more valuable than money because you can use your time to make money, but you can't use the money to purchase more time.   

GET INSURED

Freelancers like me have to take care of themselves. They need to  assured that in times of crisis and emergencies, they will have money stashed somewhere,  that can at least, give you peace of mind. This year, our family had a big medical emergency. My eldest daughter had a spine surgery and it cost us a fortune. Big help that we have insurance to cover 40% of it.    

USE TECHNOLOGY TO YOUR SAVINGS ADVANTAGE

I have Netflix   subscription. And every month I get notified that payment will be deducted from my mobile e-wallet. Why  not use the same technology to save? I have set up an automated savings process, that  digitally transfers money to a savings account every 1st day of the month. This way, I won’t forget and I get to save the same amount of money. Savings goal achieved!   

PLAN FOR RETIREMENT

Experts say that saving 5% to 10% of your gross income should be your target savings goal for retirement. This percentage doesn’t include the  amount you’re saving in your emergency fund. My retirement fund is actually in high risk  investment that I grow every month, and I am not allowed to with draw from, not until I am  of retirement age.    

I know that setting financial goals is not an easy task. But with good  financial habits we can make it work. We need to have consistency and the drive to fulfill our goal. Be realistic,  and always keep track of income, expenses and spending habits.