Best Ways to Start Saving Right Away in New Year 2023

“A penny saved is a penny earned” – We all have heard this saying. Still, most of us find it too hard to save money despite the fact that how important it is to have a financially secure future. But do you know, the most difficult part about saving is to get started? We all want to save but end up spending a large amount of our earnings on not-so-necessary expenses. But not anymore!

Say goodbye to all your bad habits by 2022 and be ready to build a fruitful habit to save more in 2023!

In this article, we are sharing some of the best ways to save money for the future. We hope it helps you to have kick-start of financial year 2023. Keep reading!

Table of Contents

• When is the best time to start financial planning?
• How to Start Saving Money in the New Year 2023?
• Frequently Asked Questions

When Is the Best Time to Start Financial Planning?

There is no best time to start financial planning. People pass days, weeks and months to find the perfect time to start saving. So, don’t wait until “next Monday” or the 1st of the next month to build a solid saving money plan.

With 2023 around the corner, trust us that there is a no better time than right now. So, sit down, grab a pen and notebook and start financial planning right away!

How to Start Saving Money in the New Year 2023?

Saving money is not as difficult as you think. Following are some simple steps that will help you start saving and build future wealth in an effortless way!

1.Understand Your Finances and Budget

First things first, begin with having a complete understanding of your finances as well as your budget. See, most of the time we don’t even know where all our money is going. In fact, very few of us make a budget and spend according to it.

So, the first thing you can do is take a look at your cash flow. This means learn about your incoming and outgoing money, and check out the monthly bills, subscriptions, debt repayments, EMIs, and saving contributions, if any. By gaining proper control over your budget, you can gain control over your financial health, which is very important to have.

Below are some tips that will help you create a good budget:

• List all your finances for a month. Includes all your expenses and your total income. 
• Check your monthly income against your expenses and see how much you are overspending and how much you’re saving after that. 
• Categorize your expenses into fixed and variable expenditures. Here, fixed costs are the expenses that are very difficult to cut off like your rent, utility bills, EMIs, etc. On the other hand, variable costs are expenses that can be easily adjusted like entertainment, groceries, subscription services, shopping, etc. 
• Now, identify the variable expenses that you can cut off to increase your monthly savings. 
• Follow this plan and start saving. And most importantly, track your performance to see if you’re meeting your savings goal or not.

2. Pay off the Debts

Before you begin saving money, it is a good idea to balance out your existing debts. The longer you take to pay off your debts, the higher the interest amount you will have to pay. In other words, the outstanding amount will continue to increase because of the hefty interest rates. So, clear your debt, and mortgages as soon as you can.

Here is a monthly plan you can follow for the same:

• Use 50% of your monthly income on fixed expenses such as house rent, utility bills, EMIs, etc. 
• Use 30% of your income for variable expenses such as entertainment, subscription services, dining out, etc. 
• Save the remaining 20%.

Follow this every month and by the end of a year, you’ll be able to pay-off a huge chunk of your debt.

3. Earn Interest On Your Savings Account

Another thing you can do to boost your savings is earning interest on your savings account. For this, open a savings account with a reputed bank or any other financial institution and start putting your savings in it. Make sure that you can access this money in case of an emergency. In other words, it can be used as your emergency fund.

Also, when you open a savings account, check the rate of interest it offers. Always choose the bank that offers a good interest rate. Moreover, some banks offer higher interest rates on current accounts as well, so you can consider this as well.

4. Automate Your Savings Contribution

To prevent yourself from spending your monthly savings amount, automate your savings contribution. This means set-up an autopay method for transferring a fixed amount to your savings account at the starting of every month. This will help you in maintaining your monthly budget without losing your savings. You can easily do so by using various bank and third-party apps that automatically transfers money between your accounts.

5. Automate Your Bills

Apart from automating your savings contribution, you can also consider automating your bill payments. This will not only save you from paying hefty late fees, but will also save a lot of time and hassle. 

6. Keep a Spending Limit on Your Cards

A great piece of advice for saving money is to set a limit on all your credit and debit cards. This will encourage you to invest mindfully while also saving you from overspending. While this tip sounds like no brainer, it will help you a lot in building a habit of saving.

Summary

And there you have it!

These are some ways in which you can start saving money in 2023. Keep in mind, getting started is the biggest burdle you need to cross. Just think about the perks of saving for the future and get started without giving much thought. And don’t worry if you can’t follow all the tips. Stick to a few and you’ll definitely learn how to save money over time. Remember, your future self is going to be very thankful for this step you will take today.