Your financial health is mostly dictated by the ability to follow a step of habits, change your mindset around money and stick with your goals and money-related decision in the long run. Today I am sharing with you some tips and hints to help you get financially ready for 2023. And hopefully help you regain control of your finances and feel more comfortable with how much you’re saving, spending and investing.
Review current subscriptions
Subscriptions, which can include services such as TV streaming, newspapers/magazines, food/drink, and beauty products. I’m sure some of us have been lured into a month-free subscription and have totally forgotten to cancel it. Go through your banking and see what subscriptions are coming out of your account, and cancel the ones you do not use. If you do want to keep them this is the perfect time to shop around to see if you can get a better deal. You will be surprised how much money you can save from cancelling unused subscriptions.
Build and prioritise emergency funds
One of the most important steps for improving your finances in 2023 is building an emergency fund. An emergency fund is a separate savings account that you can use to cover any unexpected expenses or financial emergencies such as repairing your car or having dental treatment. This will also help you avoid using your credit card and getting into debt.
Add up your yearly expenses and budget accordingly
Once your emergency fund is set up it is time to sit down and really go through your expenses from last year and start setting goals for next year. Whilst no one is expecting you to cut back on everything, seeing what you have spent written down on paper will likely make you realise how much money you waste on things. Now that you have a goal for building an emergency fund, it is worth considering what spending you can cut back on and divert the funds to your emergency fund instead. There are numerous financial calculators online which will help you calculate loan or mortgage repayments and help you budget for 2023.
Be smart when spending on food
We all love to spend money on food and this time of year is one when many people like to indulge themselves in luxury food and things they have always wanted to try. I’m not going to be someone to tell you to cut out delicious food because we all know that a little of what you fancy does you good. However, make sure you look for supermarket offers and shop your own cupboard before you do your weekly grocery shop. It’s also worth looking out for deals on places such as Wowcher and even a restaurant’s own website/social media before you go out to eat.
Postpone upcoming expenses
January can be a tough month so it is worth looking at what you have coming up that can be postponed. It’s certainly not worth putting yourself in debt for any local occasions, so if this time of year is likely to result in that then seeing what you can put off to a later date is something worth considering.
Consider a side hustle
These days there are lots of different ways to make a little extra money and these are well worth looking into. Market research, joining for referral offers and even things like starting a blog can be ways to make yourself a little extra money. The great thing about ventures like this is that they can generally be done in whatever time you have, so easy to juggle around family, work and other prior commitments you already have on your time.
Take a new approach to gifting. If you can, ask for purposeful gifts and give purposeful gifts
Christmas might be done and dusted but that doesn’t mean your gifting responsibilities are over. If you know someone’s birthday is coming up then try to consider a new way to gift – what do you have that can be regifted or is there something they would like that you’ll be able to pick up second hand? Gifting purposeful gifts and being more committed to spending sensibly is a great way to be better with money.
Pay off your debts
No one wants to be in debt, but if we’re realistic with ourselves it’s unpreventable for many people. If you are in debt then it can be wise to make 2023 the year that you pay these off as much as possible. Consider what funds you want to put into your emergency savings pot and what should be paid off of debts. Long-standing debts, ones that are charging you interest and even those that are causing you stress are ones worth getting rid of because you’ll find it makes a massive difference to how you can manage your money.
