To help build effective financial habits for the New Year and beyond, here are 6 recession-proof financial resolutions for 2023 from a self-made millionaire
The tips are from expert Thomas Kralow, a professional trader, influencer, mentor and entrepreneur behind ‘University Grade Trading Education’, an accredited investor trading learning programme that built a $20 million fortune using these hacks and really believes that they can help anyone improve their finances in 2023.
1. Set a plan (and stick to it)
Let’s face it, many of us get stuck in a routine and live from day to day and paycheque to paycheque with no plan whatsoever. Do you think Steve Jobs said ‘Well, let’s just get cracking and see where this takes us’ when inventing the iPhone? Surely not – to achieve something big, you need to have a plan and stick to it.
Simply listing your desires won’t be worthwhile. Any plan must include:
- Your current position
- Your long-term goals
- Realistic short-term milestones
- An assessment of your current skills and assets, and what you must add to achieve your aims
Once you have your plan, make sure to complete regular checkups to ensure that you’re moving in the right direction.
2. Invest in yourself
Your skills and mindset have gotten you to where you are now and they will keep you there. However, if you want to achieve more, you need to invest in yourself and grow your knowledge. You can take business consultations, coaching sessions, financial courses, mentorships or even therapy. All of these investments will ultimately pay off, saving you a lot of money. The mental resilience, together with your new professional skills, will help you reach your goals, and with up-to-date knowledge and the wise leads you’ve added to your network, new opportunities will undoubtedly come your way.
Stop trying to impress, stop comparing yourself to others and stop buying things you cannot afford. Besides the bank executives that are profiting from your debt, nobody really cares about your frivolous purchases.
3. Quit buying things that you can’t afford
Some 61% of Americans have a credit card and, on average, the balance stands at $6,194. Add on payments delayed using Buy Now Pay Later schemes, which bury us further in debt — often for no good reason. Stop trying to impress, stop comparing yourself to others and stop buying things you cannot afford. Besides the bank executives that are profiting from your debt, nobody really cares about your frivolous purchases.
4. Diversify your income streams
Many companies are laying off their employees and this trend is likely to continue during the recession. To protect yourself from an unpleasant situation, explore ways to supplement your income. Take it from someone who saved and invested their first $60,000 in a new company that turned out unsuccessful — When I lost it, I lost it all. If only I’d diversified by income streams sooner.
You don’t need two full-time jobs though. Rather, consider starting a pet project, take on some [more] freelance work, invest, consult or share your knowledge online. This is where adding new skills and knowledge to your toolbox really comes into the spotlight.
5. Start investing
Too young? Nope. Investing consistently while you’re young will allow the process of compounding to work to your advantage.
Too poor? There are plenty of opportunities to invest with as little as $10, such as partial ownership of real estate or art, some cryptocurrencies or even something as simple as a retirement fund.
Not qualified? Everybody has to start somewhere, and gaining investment knowledge has never been easier. There is so much information available online and the best bit? It’s free.
6. Take risks, but be wise
You can’t play it safe in today’s economy. Your 9-5 is no longer stable — Just look at all the layoffs. Your bank account is no longer secure — Inflation is eating away at your savings every day. You’re already taking on risk, so why not take on risk of your own choosing? When you see a new opportunity, assess it and if it offers promise, give it a go. Step out of your comfort zone and see where you end up. Do something new, push yourself to your limits and try your best. Only with hard work can you achieve your financial goals.