Personal Investing Goals to Consider Heading Into the New Year

The flipping of the calendar to a new year is a great time to re-evaluate a number of your life goals, including those related to personal investing. Having quality goals in place will give you a road map to greater financial prosperity. Regardless of if you are in a solid financial position or if you are a novice investor, here are some great goals to consider for 2023.
 

Stick to a Budget

Most investors are good at creating a budget. Where many fall short is actually sticking to that budget. However, in order to achieve all of your personal investing goals, it is imperative that you are diligent about adhering to the budget that you have created. There are a number of useful apps that you can use to hold yourself accountable. It is also a good idea to reward yourself for meeting your budgeting goals as an extra incentive to stick with the plan.
 

Raise Your Credit Score

One of the most important predictors of how well you can leverage your money is your credit score. This score is directly related to the success of your personal investing. Lenders use an individual's credit score to determine how much money to allow you to borrow and at what rate. More favorable credit scores translate to more favorable interest rates. This will save you money in the long run, helping you to make your money work for you. Good ways to increase your credit score include paying bills on time and reducing overall debt load.
 

Read a Topical Book or Take a Class

While not a necessity, it is also wise to be intentional about furthering your own knowledge about the world of personal finance. This can be done in a variety of ways, including reading a book on the topic or taking a class. While you can always leave the heavy lifting to the professionals, it is never a bad idea to try to educate and empower yourself about your finances and how to make the most out of your investments.
 

Negotiate a Pay Raise

Your personal investing will benefit if you are able to increase your salary. Make 2023 the year that you negotiate for a significant pay raise above and beyond the typical cost of living increase. This approach will provide two benefits. Not only will you see the immediate impacts in your pocketbook but you will also increase your overall earning potential for the entirety of your career. This will give you more disposable income to see aside for retirement and other types of investments. You will increase the odds of seeing this goal realized if you research the average salary for your role and highlight the accomplishments that you have had while on the job.
 

Re-evaluate Insurance Policies

Savvy investors understand the importance of having solid insurance policies in place. The type of coverage that you need is largely dependent on your age, your lifestyle, and how many people depend on your income. In addition to basic health insurance, you will also potentially need car insurance, homeowners or renters insurance, life insurance, and disability insurance. It is not just enough to purchase a policy. You should also review these policies at the beginning of every year and make the necessary adjustments depending on how your life has changed over the last 12 months. Staying on top of your coverage and shopping around for the best rates will help you to sleep better at night.
 

Re-evaluate Estate Plan

At the same time that you are re-evaluating your insurance policies, take the time to also look at your estate plan. Estate planning is even more important if you have dependents in your life. Do not overlook this part of the investment picture, particularly if your loved ones depend on your income.

While most people are not excited about diving into their personal investing goals, taking this time at the start of each year will go a long way in helping you to achieve financial freedom. Do not hesitate to consult the help of a professional if you feel as if you are not equipped to navigate these issues on your own.