How to get your 2023 finances in order

Contextualizing the finance news you need to know.

If you feel like you’re teetering on the edge of a murky economic abyss, you’re not alone. The labor market is confusing to say the least. Financial talking heads are squabbling over the state of the market. The Fed raised the interest rate again last month. It’s weird out there!

And yet, you gotta live. Regardless of the economic outlook, you’re a real person with real financial priorities. Maybe you’re hoping to switch jobs this year; maybe you’re planning a major life change like buying a house or having kids. We can’t put our lives on pause every time a Wall Street bigwig warns of the End Times™—but we can be prepared. With that in mind, here are three questions to ask yourself about your finances in 2023.

1. How’s my emergency fund? Peep your savings and ask yourself: How long will I be able to stay afloat if there’s an unexpected financial hurdle? If your answer is “Approximately three days,” what can you do to pad that fund this year?
2. Do I have a layoff plan in place? We may not be officially plunging into a recession, but some employers are already planning layoffs to cut costs in the new year. So ask yourself: If I lose my job, do I understand my employer’s severance policy? Is my LinkedIn current? Do I have a basic budget ready in case of tough times?
3. What does economic uncertainty mean for me? Between Fed rate hikes and shaky stock prices, it’s easy to feel overwhelmed by economic conditions. Now is a great time to make sure you understand the basics—how the Fed calculates inflation, for example.

We know. Thinking about personal finance feels scary “in this economy.” But we promise that taking a good, hard look at your finances won’t jinx you. It’s just a way to ensure you’re thinking about your approach during uncertain times. While you’re at it, keep an eye on Money Scoop. We love explaining this garbage. 🤩—Lillian