LINCOLN, R.I. (WPRI) — It’s hard to believe, but 2023 is right around the corner.
That’s why experts believe now is a good time to take a look at your finances are in order ahead of the new year.
Donna Sowa Allard of Sowa Financial Group tells 12 News there are a number of ways people can prepare.
The first, she said, is to review your budget.
“Make sure your spending is in line with your budget and what you’re actually doing is important,” she said.
For those looking to cut back on spending, Allard suggested canceling subscriptions or memberships you don’t regularly use.
Allard said everyone should create and maintain an emergency fund.
When determining how much money to keep in your emergency fund, Allard said it’s best to consider your expenses rather than income.
“I would aim for six months of your expenses, not your income but your expenses,” she said. “That way, as we are potentially heading into a recession, if you find yourself out of work or with reduced hours, you’ve got some money to fall back on.”
Allard said now is also a great time to review your investments and reassess if necessary.
“Do you still have the right amount of risk in your investment portfolio? … and based on investment performance last year, has it shifted at all?” Allard said. “Do a rebalance if it has shifted.”