Try these 3 tips to get better with money in 2023

Increasing savings and paying off credit cards are among the top financial New Year’s resolutions for Americans in 2023, according to a recent Bank of America survey.

But setting money goals can be easier said than done.

“When we think about budgets, we think about something that’s super restrictive and makes our lives really unfun,” says Vivan Tu, a former J.P. Morgan trader turned TikToker who now gives personal finance advice to her millions of followers as “Your Rich BFF.”

However, being smarter with money doesn’t have to be overwhelming. “Budgeting can be really easy,” Tu tells CNBC Make It.

Here are her top three tips for getting better with money in 2023.

1. Follow the 50/30/20 method

2. Balance paying down debt and investing

High-interest debt can easily balloon to an unmanageable amount, and it can be tempting to put all of your money toward paying it down.

However, saving for the future is important too. The earlier you start investing early, the longer you give your money to earn compound interest and grow.

It can feel like you have to choose between the two, but it’s feasible to do both, Tu says.

Start by chipping away at debts with high interest rates, she says. Higher interest rates will cost you more in the long run, so it’s smart to pay those debts off first.

Next, you can turn your attention toward paying down debts with lower interest rates. Since low-interest debt tends to be less costly, you can also start putting money toward investments like your 401(k).

And don’t let market volatility scare you away from investing.

“If you’re planning on holding your investments and being a long-term investor for over 40 years, statistically speaking, the chances of you losing money are very low, and you’re going to be able to grow your wealth,” Tu says.

3. Get an accountability buddy

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