Would you like to make 2023 your year to save more money? With record-breaking inflation, many people are finding it challenging to manage their finances. However, you don’t have to live paycheck to paycheck. There are certainly some steps you can take to set more money aside and reach your financial goals. Here’s what you need to do.
How to save more money this year
The following steps can help you do a better job at saving more of your income:
1. Make a list of your expenses
First things first, make a list of all your expenses. Begin by listing out the fixed costs, or those that don’t change, such as your rent or mortgage. For the expenses that fluctuate, just take the average over the last three months to get a good estimate of how much you typically spend.
2. Set a savings goal
Relative to how much you’re saving already, how much would you prefer to be setting aside instead? For instance, if you’re already saving 5%, then consider increasing this to 10%. Or, if you’re already saving 10%, then maybe shoot for 20%. Once you have a target in mind, calculate how much will be left over from your paycheck.
3. Adjust your budget
Revisit your list of expenses and then compare this to how much income you’ll have after a portion has been set aside to reach your new savings goal. If you find that your expenses are greater than your income, then you may need to make some cuts. A good place to start is with discretionary purchases such as eating out, shopping, and entertainment.
4. Stick to the plan
After making these adjustments to your budget, try it out for the next couple of weeks. It may take some getting used to at first, but your spending habits can adjust after a while. Just remember that whenever you get tempted to exceed your budget, remind yourself that your savings goal is the bigger priority.
What to do if you need some extra cash
Despite your best intentions to save more money, there may be times when you need some additional financial help. If that happens, here are a few sources you can turn to:
A home equity line of credit, or HELOC, takes the value of your house and turns it into a credit line that you can use as needed. Borrowers can use the cash to make improvements to the house, pay off debts, or even invest.
Online loans refer to a variety of loans you can get on the internet, such as installment loans and payday loans. These are some of the easiest loans to get because they often don’t require collateral (something of value like a home or vehicle that the lender can seize if you default on your payments), and funding is often available on the same business day.
Credit card cash advances
If you’ve got a credit card, then it likely already comes with a feature where you can withdraw cash any time you want (just like an ATM card). Credit card cash advances can be convenient because you’re already pre-approved and don’t have to take any additional steps.
The bottom line
You can make 2023 your year to save more money. Start by taking a closer look at your expenses, setting a savings goal, and then adjusting your budget accordingly. If you do run into any unexpected emergencies, you can always find financial relief by using resources like HELOCs, online loans, and credit card cash advances to get funding fast.