coins and a plant

Media / Blog

3 Money Moves For 2023

Prev

It's Time For The Tax Talk

January 22, 2023

The new year has brought with it welcome relief as most stock indices have posted back-to-back weekly gains to start the year. However, it may not be all smooth sailing ahead. As the Federal Reserve continues to raise interest rates to bring inflation under control, many economists are now predicting that we are in store for a recession in 2023. While the word "recession" conjures up memories of 2008 for many people, most economists do not expect it to be as severe this time around.

Even so, now is the time to prepare for stock market uncertainty, rising interest rates and a possible recession in the year ahead. Follow the three key moves below to make the best of these uncertain times.

1. Pay down your credit cards

Credit cards are now more expensive than ever with the average credit card interest rate at 20.1% and climbing. If you are unable to pay off your balance each month, consider paying down as much as your budget allows. This will not only reduce the interest you pay each month, but also free up more of your cash flow to help with inflation.

2. Review Your Emergency Savings

Most financial experts agree that you need six months of expenses in an emergency fund. However, less than half of U.S. households said they were able to cover an unexpected $1,000 expense according to a Bankrate survey in January of 2022. Building up a proper emergency reserve might not make you rich, but it could certainly prevent financial ruin, especially during a recession. If you already have a healthy emergency fund in place, check the interest that you are earning each month on your cash. If the APR is less than 3%, consider moving your reserve to an online high yield savings account, many of which pay well over 3% today.

3. Remember the Fundamentals

One of the oldest adages in investing is "buy low and sell high." Yet many people are reluctant to invest when they see double digit market losses. If you have the proper emergency reserves in place and a long-term horizon, consider buying the dip and putting your spare cash to work. The IRS also raised the 401(k) contribution limit for 2023 to $22,500, with the catch-up contribution for those above the age of 50 increasing to $7,500. Now is a great time review your current contributions to make sure you contribute the maximum, or at least enough for your full employer match.

Next

Understanding The Differences Between Flat Vs Reducing Interest Rates On Personal Loans

About the author

a man wearing a suit and tie smiling at the camera

Billy Daniels

Vice President, Private CFO®

A native of Mobile, AL, Billy moved to Atlanta shortly after graduating from The University of Alabama in 2013. Billy joined the oXYGen Financial team as a Vice President in 2019 with 4 years of previous experience in the financial services industry. In his spare time, Billy is an avid golfer, watches as many Braves games as he can, and pulls for his Crimson Tide on Saturdays in the Fall. Billy currently lives in Peachtree Corners, GA with his wife Molly, daughter Margot and their dog Beau.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.