Tips to Strengthen Your Economic Position in 2023

Among the many aphorisms coined by Irish playwright George Bernard Shaw (1856-1950), the most quoted might well be his contention that “if all the economists were laid end to end, they would not reach a conclusion.” Shaw’s quote is particularly relevant in times like these, as millions of Americans continue to struggle in an era of economic and political uncertainty.

But maybe Shaw was being too rough on economists. After all, their forecasts are just that – informed best guesses based on current conditions and projected trends. Given the form’s inherent uncertainty, the smart thing to do is take your economic well-being into your own hands. With the nation’s inflation and interest rates still at their highest in decades, here are a few things you can do to strengthen your personal economic outlook.

Cut Credit Debt: Paying down credit cards is always a good thing but it’s particularly important given current economic conditions. Data reveals the average rate of credit card interest is nearly 20%, up from 16.3% a year ago. And that figure promises to do nothing but rise as long as the Fed continues its current strategy of pursuing interest rate hikes. Your debt is only going to cost more in 2023, so now is the time to bite the bullet and pay down those credit cards.

Improve Credit Rating: Suffice it to say, cutting your credit debt will do wonders for your credit rating. If you foresee needing to borrow this year to purchase a home, car or other big-ticket item, you will want to make sure your credit score qualifies you for the lowest rates available, particularly given that a slow economy often leads banks to tighten their credit standards.

Rainy Day Fund: An emergency fund has long been regarded as the first line of defense against financial hardship and yet studies show that just 27% of Americans have the recommended six months’ worth of expenses saved up. Get in with that ‘in’ crowd and start salting away money now from each paycheck to help carry you over if those paychecks stop coming.

Develop/Revise Your Budget: Data also shows that few Americans utilize a monthly budget to track their income, savings and expenditures. Creating – and, more the point, sticking to – a monthly budget enables you to easily track where your money is going and to make adjustments as needed. It’s also important to revise your budget no less than annually, as the amount of your take-home pay and expenditures can fluctuate.

Prepare for Retirement: Sure, you might think you’ve got plenty of time to think about retirement but Americans approaching that age will tell you those decades fly by faster than you can imagine. Now is the time to set up or increase contributions to a retirement account. The goal is to contribute enough each month to at least qualify for your employer’s full match, which typically ranges from 3%-5% of your salary. If you can’t afford that right now, take a slow and steady approach with gradual increases that, over time, will make a big difference.

At Harmony Communities, we feel strongly that each resident has a sense of home. That they come home from work and feel pride in their environment and in their place in the greater community. That families are comfortable raising children in our neighborhoods, and that couples and singles know that they belong to something bigger than their four walls. In other words, we seek to create harmony within each community, making our communities not just passable, but peaceful, safe, functional, and beautiful.