Strategies to Save More In 2023
Saving money is such a simple concept: Spend less than you earn and put the difference in a savings account.
But during periods when the cost of living is going through the roof, it can be a difficult feat to pull off.
Having a nicely funded savings account is critical, especially at a time when economists are sounding the alarm bells about a likely recession in 2023.
“Boosting your cash reserves can help you save for a vacation, boost your emergency fund, or even free up money so you can start investing,” says Scott Mass, Senior Vice President of Investments for David Lerner Associates.
Strategies to Save More in 2023
Saving money is a hot topic right now.
Inflation is way over the Federal Reserve’s 2 percent target, pushing up the price of housing and consumer goods and shrinking savings. But that doesn’t mean we can’t fight back.
And so, if you don’t have adequate savings at this point, now is the right time to up your savvy when it comes to savings.
Sometimes, it can feel like you’ve cut costs as much as you possibly can, and you’re stuck on ways to save more money.
In this post, we discuss nine creative and practical ways to save more in 2023.
- Cut Cable for Good
Have you ever checked your bank statement and realized you were paying for 400 cable channels you simply don’t watch?
*slowly raises hand*
The average household cable package is now $217/month. Cutting cable and switching to a subscription service like Amazon Video, Netflix, or Hulu can save you a lot.
Chances are you already use at least one of these streaming services anyway, so there won’t be an extra cost to you.
- Cook at Home More Often
While takeout and delivery are convenient, they can get expensive real fast.
A cost-saving option is preparing meals at home. To make cooking fun, experiment with new recipes or develop a cooking challenge with your roommate or partner. Doing this can spark friendly competition with a delicious end result.
Planning your meals can save you money on groceries. Meal planning can also help you avoid those nights when you have no idea what to cook for dinner, so you resort to eating out.
- Shop Smarter
Groceries account for a sizeable chunk of most American households’ food budgets.
Here’s how to be a strategic grocery shopper and save big on your grocery bill:
- Shop discount stores and go generic.
- Save even more money doing price comparisons at different grocery stores.
- Many grocery stores launch new sales midweek, commonly on Wednesdays, so browsing the aisles then will give you first access to new discounts and promotions.
- If you have the storage space, buy non-perishable food in bulk as it’s cheaper than buying it in smaller amounts.
- Remember to make a grocery list every time you hit the grocery store. Buying only what you need will help keep your bill at bay.
- Unsubscribe from Promotional Texts & Emails
You probably receive a dozen texts and emails every day from online stores offering their latest promotion and telling you about “irresistible deals.”
I don’t know about you, but receiving a daily email with the best sales at my favorite online boutique really makes me want to buy new clothes.
Make a point to turn off notifications that want you to spend money so you’ll not be tempted to buy the stuff you don’t need. Purchasing the latest trend won’t be top of mind when you don’t get such emails to remind you. Your inbox and your bank account will thank you.
While at it, remove your credit card information from online store websites.
- Put Your Savings on Autopilot
If you find that you don’t have money left to put into savings at the end of every month, then it’s time to re-evaluate how you’re doing things.
Instead of saving whatever’s left, save a portion of your income first and only spend what’s left. The best way you can do this is by automating your savings.
You can have your bank set up automatic transfers from your checking to your savings account each pay period. This way, you won’t be seeing money leaving your account.
- Downsize Your Home
If you declutter your home, you’ll find out that you no longer require as much space.
Along with transportation and food, housing is one of the “Big Three” expenses.
Downsizing can, therefore, be a great way to save money on rent and mortgage payments.
- Kick Bad Habits
Bad habits such as smoking, excessive drinking, and gambling will gradually compound into bad and worse results. If you’ve got one, you probably already know the habit is killing your budget!
This isn’t a fun way to save money, but quitting a bad habit could add a lot of cash to your savings account.
- DIY Your Nails and Hair
Reduce spa and salon visits by half by doing your own nails and hair instead. You’ll save a considerable amount of money and still look beautiful.
It’s not just nails and hair – the internet is full of free resources that can teach you virtually anything.
The more you DIY, the more you save.
- Create an Additional Income Stream
If the pandemic taught us anything is to think about money differently.
There’s only so much you can cut from your budget. When money is tight, boosting your income might be the only way you can save more.
If you have some extra room in your schedule, you could pick up extra hours, look for a part-time or second job, or start a side hustle
Make 2023 Your Year
So, there you have it!
These nine ideas are just a handful of simple strategies to save more money in 2023. There are a lot more ideas out there!
But just by incorporating a few of these tips, you can begin to see a significant difference in your budget every month.
Happy saving!
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.
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