Personal finance: this is how you can recover your financial peace of mind this 2023 |  my finances

The 2023 begins with several financial challenges due to the high inflation figures in the country during 2022 and the fears of recession that exist worldwide. For this reason, we bring you some tips to recover your financial peace of mind at the beginning of the year.

(Read: How to take advantage of high interest rates to save).

The first thing is to take into account the entry into force of new tariffs on products and services, high costs due to inflation, consumption tax, increases in the price of gasoline, increases in transportation service and more.

According to Óscar Mario Ruiz, director of Compensar’s alliances and financing unit, he must free himself from year-end obligations and reduce his expenses.

«Before projecting what you want to achieve in 2023, it is good to identify the pending commitments, especially those acquired during December. What is recommended is to release the obligations corresponding to purchases for gifts, end-of-year trips, etc., and that implies organizing what will be allocated, month by month, to pay said expenses.«, points out the expert.

For this reason, he advises avoid new financial products or credits and concentrating on savings that could be used in the future for an emergency or an investment.

(Plus: Learn how to save smart in the face of new price hikes.)

The second thing is Turn to the emergency fund. In this sense, if you could save during 2022 and you have a personal fund, it would be a good time to put these resources to good use.

Likewise, Ruíz advises that A financial plan is established. That is, plan what the distribution of resources will be like during 2023 once the debts of the previous year have been settled.

«MEIn this sense, debts must be ordered, planning to keep them below 30%, 10% for savings and the remaining 60% to cover basic expenses.Ruiz explains.

Followed by it, for fulfill the new purposes of 2023 and that sometimes implies access to credit. For this reason, it is advisable to keep in mind the rule of ‘the longer the term, the lower the monthly payment’.

«We must not fail to comply with what is proposed, it is advisable not to allow the sum of several installments to exceed 30% of what the debts should represent with respect to the monthly income, it is okay to request a loan with more installments, trying to to pay capital as much as possible to release the obligation”, highlights the director of Compensar’s financing and alliances unit.

(See: Costs of issuance and renewal of the driver’s license in 2023).

Along with this, it is recommended to properly manage credit cards. According to the Superinancial the usury rate for January 2022 will be 43.26%, that is, the use of credit cards would be 665% more expensive than the same month in 2022.

Therefore, it is recommended to buy at lower odds and make advances only when necessary. This implies not using them to cover small expenses or using all the available space.

Finally, the savings. «The reserve money must be separated from the one that is going to be used for other obligations, preventing it from having to be used to cover expenses in the monthRuiz explains.