Fashion trends, food trends… health trends, and financial trends in 2023?! Associating the word trend with our finances may seem strange to say the least.
Financial Trends 2023 comes to emphasize once again the need and importance of careful budgeting of our expenses, the need to save, and the importance of starting an investment portfolio. All this, in the context of the increased level of inflation and implicitly of the accelerated increase in prices.
If we talk about investments, we see the need for a diversified portfolio with attention to government securities, bonds, and shares.
Let’s see where financial trends are heading, or if what we did in 2022 remains “fashionable” for achieving financial goals in 2023 and the years to come.
Greater focus on cost control
The recession that seems to be knocking on the door highlights the need to prepare for new economic uncertainties and to streamline processes whenever possible.
2023 will be the year of frugality. The pressure will be heavily on the shoulders of financial professionals for financial resilience solutions as the economic downturn hits.
Approaches have changed in the last couple of years due to rapid digitization, markets with a more level playing field, and competition increasing in offers to better manage your budget. But don’t forget that nothing can replace financial coaching tailored to your personalized needs.
2023 may be the perfect year to reduce the amount you pay on some of your bills. You may even be able to give up some of them altogether. Not using the gym membership? Give it up and run outdoors. Exercise at home or in the park, especially since winter has turned out to be much friendlier. Not watching your favorite series as often as you used to? Take a break from subscriptions like this. Renegotiate, adapt, reevaluate, and ask!
The need for a financial coach
In periods of imminent crisis or to achieve long-term goals, financial coaching has become the “destination” of many people and companies in 2022. The trend seems to remain for 2023 as well and many years to come. The crisis also sounded the alarm for the growing need for a financial coach throughout big investment decisions.
If you haven’t done so yet, you still have time to sign up for the Money and Wine Program, a unique financial coaching concept in Romania, or opt for a 1-on-1 coaching session if this service suits you better.
People are more careful with their money and time. Slowly people give up making unpredictable decisions, leave fear aside and decide to talk to a specialist before making irreversible financial moves.
Budgeting again and again-the best option
Budgeting is the most effective way to understand how not to spend more than your income allows you to do. Monitoring your budget inflows and outflows leads to healthier savings and the possibility of growth in your financial journey. You can move toward the investment zone. Careful budgeting remains a major focus for companies in 2023 as well. Budgeting makes you more quickly identify areas where you can immediately reduce expenses.
If you’ve had trouble saving and/or investing in 2022, 2023 is a good time to change that for good. Financial advisors worldwide say that “paying yourself first” is the best solution as always.
Ultimately, this means putting money into savings or investment accounts first, rather than waiting until the end of the month and seeing what’s left.
Making saving and/or investing automatic and not something you have to decide on every month will also help.
Invest in yourself
Until the big investments in the stock market, should the investment in us remain a focal point? The year 2023 demands our patience, and organization but also greater power to adapt. Generating new income, and better-managing finances – all come with learning new information and skills.
Revaluation of/or payment of loans
Credit reassessment. After all, having good or “improved” credit can also mean paying lower interest and fees. It can also mean early repayment of the loan, with a well-made plan.
Investment diversification
Financial trend or rather the best approach you can have in 2023 for your investments? Are you among those who have not yet diversified their investment portfolio? 2023 will surely ask you to do it! Whether you go for safe tools (the most recommended for this year) or have other financial thoughts, let’s see how we put money to work for you. Don’t forget government bonds, bonds, and mutual funds.
The “holy” trust fund!
Never underestimate its immense utility and value in 2023.
Habits, savings routine, and discipline make a good team when it comes to the reserve fund. How much should it be? It should ideally cover a minimum of 3 to 6 months of expenses.
It is a year in which a multitude of uncertainties hovers. Organizations massively lay off, but above all, drastically reduce budgets.
If the reserve fund chases away the financial clouds temporarily, removing the financial stress installed in emergency situations, calling a financial coach can chase away the clouds for a longer period. He also can make them appear less and less.