How to Spend Less and Save More in 2023
It's easy to let money slip through your fingers, especially when it seems like more is going out than coming in. But if you want to live the financially stable life you've always wanted, it's time to get serious about your goals. The first step is to figure out what those goals are, and then you need to take a hard look at your financial habits. You'll need to re-evaluate your spending habits and realize that sometimes things aren't worth the price tag. And finally, you'll have to prioritize saving for your goals so that you never lose sight of what matters.
No matter how big or small your goal is, there are ways to save for it. Maybe you want a house or maybe you just want a vacation—whatever it is, there are ways to make sure it happens. Let’s look at how you can support your savings goals in 2023
Smart goals for saving money
If you're like most people, you probably have some financial goals for yourself in the coming year. Maybe they include buying a new car, getting a promotion at work, or becoming debt-free. If any of these sound familiar, consider these ways to save more and spend less in 2023:
Save With Purpose
A New Year's Resolution to save money is a great goal, but if you don't specify how much you are trying to save, by when, and how, it's difficult to achieve this objective. If you have a specific goal in mind, it makes the process more actionable, and you can visualize your reward and motivate yourself to achieve your savings targets. If you set savings goals and you stick to them, they'll become habits that you want to continue forever.
Start an emergency fund
No matter what your goals are for 2023, having an emergency fund can help you achieve them faster. This is especially true if you have any debt or plan on making big purchases shortly. Having an emergency fund will allow you to weather unexpected expenses without having to turn to credit cards or other forms of borrowing that can lead to higher interest rates and more debt in the long run.
Allocate Your Budget
Budgeting is a great way to keep spending in check. Allocating the budget allows you to categorize spending and ensures that you can afford to spend on what matters the most. There are an endless number of different ways to decide how to allocate your budget. One rule of thumb is to utilize 50-30-20 rules. 50% of the budget goes to needs, 30% will go to wants, and 20% will go to long-term financial goals. A person following this budget plan may reserve 50% of their income for rent and groceries, 30% for any activities they enjoy or eating out at favorite restaurants, and 20% contributed to savings or paying down debt. Most credit card apps allow categorizing spending for you. Free apps, such as Mint, will also track expenses across all of your accounts (or as many as you link to the app). Another option is to hide your credit cards in a drawer for a month and pay for everything in cash. This way you will only spend your allocated amount and won’t have the temptation of swiping your card at the tip of your fingers.
Make It Difficult to Cheat
Even the most financially prepared and self-disciplined of us can slip from time to time. The key to blowing a budget is to protect your assets from, well, yourself! One way to do this is to protect your savings by making them difficult to access. Put your emergency fund in a bank that is an hour away, or more, and cut the ATM card. This way you can ensure you stay on track.
We hope these tips will help you become a better saver in 2023. If you're in the medical profession, and you need financial advice and planning for a secure and carefree future, we've got you covered. At Prime Financial Services, we provide the finance, accounting, and tax planning services that healthcare professionals need to simplify their lives, reduce their stress and worry about money, and assure them of a secure future with retirement.