7 Money Moves To Increase Your Net Worth In 2023

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Eun "Michelle" Cho, CFP®, ChSNC

Financial Planner
Echo Wealth Solutions
Office : (702) 721-9061
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Here are seven smart money moves everyone should make in 2023 to help take the stress out of building their wealth. Some of these will save you money, which will allow you to put more momentum behind your wealth-building strategies. Others will help you pay fewer taxes. Some might make your life a little easier, and who couldn't benefit from that in these crazy times?


You don't have to be a Prince or Princess to live a rich life and build wealth.(Photo by Samir Hussein/WireImage)


1. Increase Your 401(k) Contributions

Whether you are investing a little or a lot for retirement, now is a great time to increase your retirement plan contributions . Good news from the IRS for workers, you can now contribute $22,500 to a 401(k) as an employee. Small business owners' total contribution limit for a 401(k) is $66,000 in 2023. If you are 50 or older, you can also make a $7,500 catch-up contribution. For high-income-earning business owners, contribution limits to a Cash Balance Plan have also increased . This is in addition to the 401(k) contributions. The tax saving could be huge. Business owners could shelter millions of dollars from income taxes when maxing out a combination 401(k) Cash Balance Pension plan over the next decade.

2. Check Your Recurring Bills-Call to Save Money

Take a few minutes and review what you are spending on your monthly bills each month. What recurring services are you paying for that you aren't using? If you aren't using an app or streaming service, cancel it. I just spoke with a couple that was paying for three Netflix NFLX accounts. Admittedly, they watch a lot of TV, but that's not a reason to triple pay. Many services also offer a discount if you pay for an entire year in advance.

For other services like internet, cable, cell phone, home phone, and so on, you likely had a discounted price for the service when you originally signed up. If this initial promotion has ended, call your provider, and see if they have a client retention bonus or pricing. Consider switching providers to save money each month. Last year, I was able to upgrade my iPhone essentially for free. I just had to pay the tax. Of course, the downside is I am tied to my cell phone provider for two more years.

I do this money-saving process each year, and each year I'm still able to save money. You may be able to save a few hundred dollars per month by negotiating all your services. That might translate into thousands of dollars per year in savings. If you need extra motivation, the money you save here could help increase your savings for retirement. This both lowers your taxes and could help you retire earlier.

3. Set Automatic Contributions to Investment Accounts

I am a massive fan of building wealth and making smart financial decisions over time. As a fiduciary financial planner, it is also my job to help people reach financial freedom . Everyone should be saving money beyond their retirement accounts . If you haven't already done so, open a non-retirement investment account and set up an automatic monthly contribution

Read the last tip if you are wondering where this extra money to save each month will come from. Hopefully, you were able to cut a few hundred dollars per month from your budget by negotiating or canceling your recurring bills. By saving just $300 per month for 20 years (assuming a 10% return), you could have a whopping $206,000.

4. Check Your Mortgage Rates

Many of you may have benefitted from buying a home or at least locking in record-low interest rates for some period of time. It is a good time to review your mortgage now that mortgage rates are increasing. Will your Adjustable-Rate Mortgage (ARM) be reset at some point in the future? If so, you should mark your calendar for when the rates could change. Also, be proactive and consider what you will do if your mortgage rate jumps. Some ARMs limit how fast the rates can increase, but some don't, so check the fine print.

5. Automate Your Monthly Bill Paying

We are all busy, and saving time is always a plus. Part of the financial planning process is to help you reach your goals faster and easier. One way to make tracking your finances easier is automatically paying as many of your bills as possible. Set up auto-pay for all your bills that you can. Likewise, have your paycheck direct deposited.

For those willing and able to pay off their credit cards each month, pay as many bills as possible with a credit card that earns miles or points. You earn miles or points, but it also helps track your monthly spending. You only have to pay the credit card bill once per month, rather than each bill as received. Essentially, you turn paying a bunch of separate bills each month into paying one or two monthly credit card bills. You can even set up automatic payments for your credit card bills.


You don't have to be a Louis Vuitton shopper to rack up high interest credit card debt./Getty Images


6. Get a Handle on High-Interest Debt

As I mentioned earlier, mortgage rates are rising. Interest rates are also increasing on other high-interest debt like credit cards. The higher the interest you are paying, the more costly holding that debt becomes. Make paying down high-interest debt a priority.

On the flip side, if you are locked in a low-interest mortgage, I'm a fan of starting a house payoff fund rather than paying down the mortgage.

7. Be Sure To Take Time for Yourself

You may think that a financial planner will just tell you to save, save, save until it hurts. If your credit cards are maxed out, that may be the only path forward. For the rest of you reading this, make sure you treat yourself to something nice every so often.I love to see clients taking a nice trip or enjoying some bucket list activity. I will admit I love it more when someone scores a great deal on the dream vacation, but mostly because that means they can travel more without breaking the bank.

By David Rae, Contributor

© 2022 Forbes Media LLC. All Rights Reserved

This Forbes article was legally licensed through AdvisorStream.

Eun "Michelle" Cho profile photo

Eun "Michelle" Cho, CFP®, ChSNC

Financial Planner
Echo Wealth Solutions
Office : (702) 721-9061
Contact Now