Financial Safety Moves In 2023 With Anthony ONeal
CHARLOTTE, NC — As financial concerns grow for Americans, Financial Expert and host of “The Table” on YouTube, Anthony ONeal shares advice on how Americans can start off the new year financially correct.
Protect the Money You Have.
There’s lots of talk about a recession this year, which can cause people to panic about their money.
Savings:
If you have savings built up, move it to a high yield savings account. You want to make sure that the money you do have is working for you.
You’ll get a small return on money that you just have sitting in the bank. Be sure to shop around for the highest rate – it may not be your current bank.
Investments:
2022 wasn’t a great year for the stock market. You might be tempted to pull your money out as you see the numbers going down. Do NOT do that!
The losses you see on paper during a recession won’t impact you unless you pull your money out.
It’s like buying a house- it matters when you buy and when you sell.
In fact, if you can swing it to invest more during a recession, you’ll reap the benefits later.
The IRS recently raised the annual 401(k) contribution limit to $22,500 for 2023. That’s the largest increase ever in terms of dollars and percentage. For those 50 or older, the 2023 limit rises to $30,000. Take advantage if you can!
History shows us that the market will rebound. Be patient and ride it out.
Deal with the Money You Owe.
If you have a stable job, do not pull back on paying down debt. Now is the time to tackle it.
The Fed is expected to continue with rate hikes, making debt more expensive to carry.
A recession should motivate you even more to get rid of your debt.
Work the debt snowball- line up your debts smallest to largest, regardless of interest rate. Throw everything you can at the smallest debt, making minimum payments on the rest.
Once the smallest debt is paid, roll that payment to the next one. Repeat until you’re debt-free.
If you lost your job, pause paying down debt. Focus on covering your food, transportation, utilities and housing. Those become your priorities as you search for a new job.
Protect Your Income.
The reality in a recession is that some people may lose their jobs. There are steps you can proactively take now so that you’re not in a bind if that happens.
You want to have safety nets in place if the worst were to happen. The first one is an emergency fund. Aim to have 3-6 months of expenses saved so that you can rely on that if you have an emergency. Make building an emergency fund a priority in 2023.
Separately, don’t sit around waiting and worrying about possibly losing your job. Take action to create other income streams now.
Start a side hustle with whatever skills you have from your current job. Start doing some freelance work that you can manage on top of your current income. If you lose your job, your income doesn’t totally stop and you can scale up your clients.
If you don’t lose your job, that’s extra money to pay down your debt and build an emergency fund.
