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It’s safe to say we can all agree that 2022 has been a stressful year for people’s finances: Inflation<\/a> surged, having a profound impact on the costs of essentials like gas and groceries<\/a>; interest rates increased with every rate hike set by the Federal Reserve so it became more expensive to take on debt; and, of course, the stock market took many tumbles<\/a>, which left many investors feeling shaken.<\/p>\n And let’s not forget the talk of a potential recession and the mass layoffs that have become more common since the summertime.<\/p>\n While these events are out of our control, there are still steps you can take in 2023 to feel a little more confident and prepared with our finances.<\/p>\n<\/div>\n Subscribe to the Select Newsletter!<\/strong><\/p>\n Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly.\u00a0Sign-up here<\/a>.<\/p>\n<\/div>\n<\/div>\n UFB Best Savings is a Member FDIC.<\/p>\n<\/div>\n Goldman Sachs Bank USA is a Member FDIC.<\/p>\n<\/div>\n None to open; $1 to earn interest<\/p>\n<\/div>\n<\/li>\n Up to 6 free withdrawals or transfers per statement cycle *The 6\/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D<\/em><\/p>\n<\/div>\n<\/li>\n Checking your credit score<\/a> can be especially important if you plan on applying for a mortgage, loan, apartment or a new credit card later in the year. Knowing your credit score ahead of time can allow you to have adequate time to rectify any issues that could land you a high interest rate or disqualify you from being approved altogether.<\/p>\n For example, if you check your credit score and it’s lower<\/a> than you’d like, you have several months to lower your credit utilization ratio<\/a> and continue making on-time payments so you can improve your score<\/a> and get a better interest rate before you apply for that mortgage or credit card.<\/p>\n Also, consider using a tool like\u00a0*Experian Boost\u00ae<\/a>, which was designed to help consumers improve their credit scores by including positive payment records for certain utilities, subscription services (i.e. Netflix) and rent<\/a> on their credit reports.\u00a0According to Experian, 66% of Experian Boost users saw an increase in their scores, an average of 13 points for FICO\u00ae Score 8, the most commonly used score by lenders.<\/p>\n<\/div>\n On Experian’s secure site<\/p>\n<\/div>\n 13 points, though results vary<\/p>\n<\/div>\n<\/li>\n Results will vary. See website for details.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n If you have a large expense next year that is planned \u2014 like a home renovation, college tuition, or new car purchase \u2014 it’s important to have a plan in place for paying for it. Maybe you’re planning to take on a personal loan<\/a> for your home renovation; in this case, you’ll want to make sure your credit score is in a good spot so you can qualify for lower interest rates.<\/p>\n Or perhaps you think it’s possible to pay next semester’s tuition if you save some money each month \u2014\u00a0planning ahead will help you figure out exactly how much you need go set aside every month. It’s better to go in having a strategy rather than wait for the last minute and make a financial decision that could potentially turn into a costly mistake.<\/p>\n<\/div>\n If you’re a federal student loan borrower whose loan balance is still up in the air due to setbacks with the Biden Administration’s plan to cancel up to $20,000, now’s your last chance to prepare for payments. According to the Biden Administration, the payment pause has been extended one final time through June 30, 2023<\/a>. If student debt cancellation has not been implemented by this time, payments will resume 60 days later in August 2023.<\/p>\n In other words, you could potentially have eight months next year to plan for how you’ll start making payments again if your balance won’t be wiped out by the Administration’s debt relief plan. Of course, many individuals don’t want to make any payments right now, despite the pause on interest, because they could save significant cash if their balance ends up being wiped out.<\/p>\n One of the best ways to prepare, though, is to start saving your monthly payments. So if your monthly payments are $300, you should put that $300 in a savings account every single month. This way, you’ll still have money set aside to make one large loan payment when the pause is lifted. And if your debt ends up being wiped away, you’ll have a lump sum of cash that you can use towards another financial goal of yours, like purchasing a home or investing for retirement.<\/p>\n<\/div>\n While debt can certainly be a useful tool for helping you afford certain things (like a house or college), it’s still important to manage your debt in a healthy way so you aren’t over-leveraged. Plus, lowering your debt<\/a> now can help you have easier access to debt if you really need it at a later time \u2014 like in the event of a large surprise expense that your emergency fund can’t fully cover.<\/p>\n One way to pay down debt is to use a\u00a0balance transfer card<\/a>, which allows you to move debt from a high-interest credit card to a new card that offers no interest for an introductory period. This should help you pay down your balance a little faster since you’ll save on interest charges. The\u00a0Wells Fargo Reflect\u00ae Card<\/a>, for example, has a 0% intro APR for up to 21 months on balance transfers and new purchases (after, 17.24% – 29.24% variable APR; balance transfers must be completed within 120 days of account opening).<\/p>\n<\/div>\n On Wells Fargo’s secure site<\/p>\n<\/div>\n 0% intro APR for 18 months from account opening on purchases and qualifying balance transfers. Intro APR extension for 3 months with on-time minimum payments during the intro period. 17.24% – 29.24% Variable APR thereafter<\/p>\n<\/div>\n<\/li>\n 17.24% – 29.24% variable APR on purchases and balance transfers<\/p>\n<\/div>\n<\/li>\n Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)<\/p>\n<\/div>\n<\/li>\n Another balance transfer card option is the\u00a0Wells Fargo Active Cash\u00ae Card<\/a>\u00a0<\/strong>since it offers an introductory 0% APR for 15 months from account opening (after, 19.24%, 24.24%, or 29.24% variable APR\u00a0). However, this card also offers a welcome bonus: you can earn $200 cash rewards bonus after spending $1,000 in purchases in the first three months. Plus, you’ll earn 2% cash rewards on all purchases making this a great cash-back card<\/a> to hold long term.<\/p>\n<\/div>\n On Wells Fargo’s secure site<\/p>\n<\/div>\n Unlimited 2% cash rewards on purchases<\/p>\n<\/div>\n<\/li>\n Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months<\/p>\n<\/div>\n<\/li>\n 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate<\/p>\n<\/div>\n<\/li>\n 19.24%, 24.24%, or 29.24% variable APR on purchases and balance transfers<\/p>\n<\/div>\n<\/li>\n Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)<\/p>\n<\/div>\n<\/li>\n Another way to pay down debt a little faster is to use a debt consolidation<\/a> loan. With these types of personal loans, you apply for an amount that’s enough to cover all your debt balances and the lender will send the funds to each of your creditors \u2014 you’ll then only be responsible for paying back the debt consolidation loan<\/a> which should have a lower interest rate than your credit card.<\/p>\n SoFi Personal Loans<\/a> is a promising contender since this lender lets you apply for up to $100,000. This makes it ideal for those who carry much higher debt balances. Marcus by Goldman Sachs Personal Loans<\/a> is another solid option since this lender will directly pay up to 10 creditors for you.<\/p>\n<\/div>\n 7.99% to 23.43% when you sign up for autopay<\/p>\n<\/div>\n<\/li>\n Debt consolidation\/refinancing, home improvement, relocation assistance or medical expenses<\/p>\n<\/div>\n<\/li>\n 6.99% to 24.99% APR when you sign up for autopay<\/p>\n<\/div>\n<\/li>\n Debt consolidation, home improvement, wedding, moving and relocation or vacation<\/p>\n<\/div>\n<\/li>\n A financial planner<\/a> can help you navigate life’s largest financial challenges so you can reach your goals. It can really help to have another perspective from someone who’s an expert in the space and that’s exactly with a CFP can do.<\/p>\n You can use a service like Zoe Financial<\/a> to search for nearby financial planners who specialize in the areas you need the most help with. Your first consultation call is typically free, so you can speak with the CFP to figure out if they’re right for you and if they’re someone you’ll have a good experience working with.<\/p>\n<\/div>\n While 2022 was a financially tumultuous year with many twists and turns, there are steps every individual can take to walk into 2023 feeling a little more prepared. Building an emergency fund and creating plans for making large purchases and paying down debt are some of the most important things you can do as you close out the year. But don’t forget to always seek professional help for personalized recommendations.<\/p>\n Catch up on Select’s in-depth coverage of\u00a0<\/strong><\/em>personal finance<\/strong><\/em><\/a>,\u00a0<\/strong><\/em>tech and tools<\/strong><\/em><\/a>,\u00a0<\/strong><\/em>wellness<\/strong><\/em><\/a>\u00a0and more, and follow us on\u00a0<\/strong><\/em>Facebook<\/strong><\/em><\/a>,\u00a0<\/strong><\/em>Instagram<\/strong><\/em><\/a>\u00a0and\u00a0<\/strong><\/em>Twitter<\/strong><\/em><\/a>\u00a0to stay up to date.<\/strong><\/em><\/p>\n<\/div>\n Editorial Note:<\/strong> Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff\u2019s alone, and have not been reviewed, approved or otherwise endorsed by any third party.<\/p>\n<\/div>\n1. Build your emergency fund<\/h2>\n
UFB Best Savings <\/a><\/h3>\n
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Offer ATM card?<\/h4>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
Marcus by Goldman Sachs High Yield Online Savings<\/a><\/h3>\n
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Offer checking account?<\/h4>\n<\/li>\n
Offer ATM card?<\/h4>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
2. Check your credit score<\/h2>\n
Experian Boost\u00ae<\/a><\/h3>\n
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3. Create a plan for paying for large upcoming expenses<\/h2>\n
4. Save money for student loan payments<\/h2>\n
5. Create a plan for paying down debt<\/h2>\n
Wells Fargo Reflect\u00ae Card<\/a><\/h3>\n
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Wells Fargo Active Cash\u00ae Card<\/a><\/h3>\n
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SoFi Personal Loans<\/a><\/h3>\n
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Annual Percentage Rate (APR)<\/h4>\n
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Marcus by Goldman Sachs Personal Loans<\/a><\/h3>\n
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Annual Percentage Rate (APR)<\/h4>\n
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Late fee<\/h4>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/section>\n
6. Find a financial planner you’ll enjoy working with<\/h2>\n
Bottom line<\/h2>\n