financial planning for 2023

Financial Planning And Preparation For The 2023 Market

It is not possible to accurately predict the exact nature of the coming financial year. There are however factors to consider when planning for the financial market. The past year has seen a particularly volatile economic year with rising inflation, spurred on by global events, at the centre of attention. There is uncertainty that things will improve much in 2023 so it is best to be prepared. Here are some things to keep in mind in planning for the 2023 financial market.

Rising Inflation

It’s impossible not to discuss the market performance of the coming year without mentioning inflation. Inflation has risen drastically on a global scale, largely due to the conflict in the Ukraine. South Africa is no exception.

Inflation affects the spending power of an economy. It may be necessary to start tightening belts in preparation for this. Inflation is reaching a peak which will likely stick around. Scrutinise personal budgets and try to find areas that can be cut back on.

Business owners must find creative solutions to bring production costs down. It is possible to reduce the price of products or services to boost sales, but clever marketing and production solutions will likely see better profits.

Rising inflation also results in interest rate hikes. This can affect credit card interest, mortgages, and rates on savings accounts. Review these and be aware of any changes in these costs.

Financial planning for 2023

The key to approaching 2023, is to ensure that everything has been considered. The market is unpredictable but making sure all finances are as secure as possible greatly diminishes the impact of fluctuations in the market. Review all finances and make a financial plan.

Check personal budgets. Make sure that there are no unnecessary expenditures. Make sure that money is being saved wherever possible for emergencies.

Review business or employment factors. Is work secure? Are profits/salaries sufficient for personal needs? How will inflation and the resulting reduction in sales affect this?

Go over all investments. Keep an eye on fluctuations in the market and how these affect investments. Don’t make any drastic changes but be aware.

The market is complicated and it is impossible to tell precisely where it is headed. Whilst predictions are complicated it is still possible to ensure that personal finances are stable. Future predictions are possible by studying past trends. Experience is greatly beneficial in planning finances. Contact an advisor at Remnant and benefit from their experience and ability.