Will You Save More Money in 2023? Only if You Do These Things

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Put them on your list if you want to increase your savings.

Important points

• Many people struggled to save money in 2022 due to inflation.
• If you’re looking to increase your cash reserves over the next year, you may need to make a few key changes.
• Being on a budget and living below your means can help, as can automating your savings.

Saving money is an important thing. But in times when the cost of living is rising, it can be difficult to pull through.

This was the case this year. Inflation rates had been rising at the start of 2022, and they only rose from there. So it’s easy to understand why so many people struggle to pump extra money into their savings accounts.

However, a well-funded savings account is essential, especially at a time when pundits have been warning of a possible recession. So if you don’t have a solid emergency fund at this point, you absolutely need to step up your saving efforts next year.

But what if you’re really struggling to save outside of inflation? If so, you may need to change some of your habits. And if you do the following things, you might find that you can do a great job saving in 2023.

1. Follow a budget

Some people find budgeting boring. Others find it complicated. In theory, these are reasons not to do it. But if you don’t get used to sticking to a budget, you could have real trouble saving money. So instead of going down that route, talk yourself into budgeting.

One thing you should know is budgeting is not a tricky or time-consuming process. Also, nowadays there are various budgeting apps that you can use to make the process seamless.

As for the boring part, well, that’s something you might just have to get on board with. You may not love the idea of ​​reviewing your finances every month, just as you might not like the idea of ​​cleaning your bathroom from time to time. But at the end of the day, it’s one of those things that just has to be done.

2. Live below your means

If you want to increase your savings, you have to make a habit of not spending your entire paycheck month after month. Sticking to a budget helps in this regard because you see where your money is actually going. But you also need to commit to avoiding some non-essential expenses if you want to see your cash reserves grow.

Think about the things you spend money on today. You might hate the idea of ​​placing your weekly takeout order. But if that’s the case, cut back on expenses that are less important to you, such as B. Cable. The goal is not to cut out everyone few luxuries – only the ones you can do without.

3. Make the process automatic

If you spend all of your money month after month and only put money into your savings account at the end of the month, it can be difficult to reach your goals. A better bet? Make the savings process automatic. Have a portion of your paycheck move from your checking account to your savings account as it comes in—before you have a chance to spend it. This takes away the temptation to incur extra expenses during the month and keeps you on track.

Many people haven’t made much progress in their savings efforts this year. If you’re one of them, these steps could make you successful in 2023.