Money-Saving Strategies for 2023

Pay yourself first in the new year

From the LifeMinute.TV Team

January 6, 2023

If you’ve made a resolution to save money in the New Year, here are some simple tips to help. 

Create a budget
Write out a budget that maps out fixed and regular monthly expenses such as mortgage or rent, utility and car payments. Establish goals for other necessary expenses, such as how much you spend on groceries etc. Track what you’re spending on discretionary things such as going out dinner, buying clothes, or travel. Then start to create a few limits on the latter.

Pay yourself first
Each time you get paid, immediately deposit a certain amount (even if it’s a tiny amount) of your money into your savings account. Another option is to automatically set up monthly direct deposits from your checking account into your savings account. Since the savings are happening in the background, you may not be as tempted to spend money on an unnecessary expense. You’ll be surprised how much you can end up with at the end of each month, if you stick with it.

Save any tax refund
If you get a tax refund, deposit it into your savings account and apply it to your emergency fund, so you'll have money set aside for unexpected expenses. 

Bundle plans
Many companies and insurers offer savings when you bundle more than one policy or plan, like car and home, even pet insurance or internet and cable service. Carriers also may offer discounts when you set up an automatic payment method for your policies and plans.

Pay down credit card debt
Credit cards are valuable but can drain your bank account.  In the new year, focus on paying down your existing balance. The more you pay down, the less you'll have to pay in interest. Not to mention, it bodes better down the road if you need a loan to buy a home or a car.

Cancel unused subscriptions
Cancel any subscriptions you don't use regularly. For example, if you have subscriptions to one or more streaming services you rarely or never watch, you are likely wasting money. Subscription costs can add up over time. Canceling them can save you several dollars each month.

Sell what you don’t use
Selling items you no longer use is a practical way to make extra money and declutter your home simultaneously. Consider having a garage sale or selling things online through a website or app. If you have high-value items, you may be able to sell them to a pawn shop or consignment store. Donate anything that you can’t sell to a charitable organization. You might get a tax deduction for your donation. Moreover, you're doing good for others.

Shop around for better deals
Before making a purchase, take a little time to shop around and look for better deals. One way is to use a cash-back website or app that offer a rebate on purchased goods and services or a coupon for an additional discount.