By                    Jenny Rose Spaudo

Take a Look Back: 2022 Year in ReviewRead More: 3 Easy Tips To Turn Your Credit Woes Into Wows

What practical steps should you take to reach your goals next year? Here are the top money resolutions financial experts recommend if you want to get your finances on track in 2023.

Set a Budget To Achieve Your Goals

To reach your savings goal, though, you’ll need a budget, said Jay Zigmont, CFP and founder of Childfree Wealth. Creating and sticking to a budget throughout the year can help you stay on track with your savings and avoid overspending.

“It doesn’t matter if you follow a cash-stuffing approach, use an app, or just put it down on paper,” Zigmont said. “You just need to have a plan for your money each month. Your first month of budgeting won’t be perfect, but the key is to keep at it and keep making improvements.”

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Pay Off Your High-Interest Debt

Paying off these debts can free you to invest, save and enjoy more of your money. Start by making sure you understand all the terms and conditions of your current loans, said CPA and finance coach Tatiana Tsoir. Try to make this a habit before taking on any new debts, too.

“Many people don’t understand the terms of their credit cards, bank accounts, loans, or cash advances,” she said. “Know what you’re getting yourself into and whether it’s going to help or hurt your financial situation.”

Contribute To a Retirement Account

“Are you contributing to a 401(k) or have access to it? If not, are you contributing to an IRA?” asked Samantha Garcia, a wealth advisor at Halbert Hargrove.

Start contributing to a retirement account now rather than later. Even if you can only contribute a small amount at first, starting early gives compound interest time to work in your favor.

Build an Emergency Fund If You Don’t Have One Yet

“You need to know if you can pay your medical bills and living expenses,” Tsoir said. “Do you have money available in case of an emergency or job loss?”

Many financial experts recommend saving six months’ worth of living expenses. But if that’s not realistic for you, start with $500 or $1,000. As long as you’re putting money toward this fund each month, you’re headed in the right direction.

Prep Your 2022 Tax Return Early

Don’t wait until March to start preparing your 2022 tax return, said Mark Henry, founder and CEO of Alloy Wealth Management. If you work with an accountant or CPA, get in touch with them as soon as possible to look at how much money you made this year, how much you paid in taxes and how much you can deduct.

This is especially important for business owners or self-employed freelancers. You may find you need to make another estimated tax payment, or you may want to increase your charitable giving before the end of the year.

Consider Making Roth Conversions

If you have a traditional IRA, you may have lost money this year with how turbulent the market has been, Henry said. In that case, consider making a Roth conversion so that you won’t have to pay taxes on gains when the market bounces back.

“A Roth conversion is when you take money out of a traditional IRA or 401(k) that you haven’t paid taxes on yet, pay taxes on the withdrawal, and move the money to a Roth account, where it can grow tax free until you retire,” he explained.

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