Five Tips To Save Money In Your Household For 2023
As a household, there’s never been a more appropriate and needed time to save money. With the pandemic still impacting a lot of the world financially, as well as the rise in pretty much everything at the moment, saving money is key in 2023.
If you’re a household that doesn’t typically save money or struggles to save it, then it’s worth knowing some key tips to help make saving a lot easier. Here are five tips to save money in your household for 2023.
Subscribe to Accounting Accidentally on Substack. Get links to new content on accounting, personal finance, and humor/ short story topics.
Contents
Get better with budgeting
Where possible try to get better with budgeting. If you consider budgeting to be an unfamiliar word, then chances are this is where you need to focus your attention in order to save money.
Budgeting is something we’re not necessarily taught in the classroom so it’s worthwhile to brush up your skills in this department. With a budget, it’s easy enough to create one on Excel or to use any type of template that exists online.
Look at how much you’re bringing in and how much you’re spending each month. This will hopefully leave you with what’s leftover and budgeting them becomes easier.
Cut down on luxuries
While luxuries are great to have, you could benefit from cutting these out, especially if they’re something that’s cutting into your available savings.
Luxuries are just that – a luxury. So with that being said, try to cut down on them if they’ve gotten a little out of hand recently. Luxuries are anything beyond your mortgage/rental payments, your utility bills and food shops.
That means you’ve likely got a lot of luxuries on top of this that could be scrapped in order to save more money.
Create an emergency fund
Saving for a rainy day is always advised when it comes to the average household. Whether you’re doing well with your savings or not, a separate emergency pot is worth having. Emergencies might be the boiler breaking down or a car crash which means you need a deposit for a new car.
Putting away a little bit of money each month is a great way to build up this fund and it’ll certainly be appreciated when the time comes to use it. Remember though to only use it in an emergency or in situations where your monthly pay packet won’t cover it.
Review your insurances
Your insurance is something worth reviewing, especially with the cost of insurance often going up each year. Compare boiler cover as this is an appliance that can become expensive to cover, especially as time goes on.
Wipe off debt before it gets too much
Finally, if you’re a household that’s accrued a little debt recently, then it’s definitely worth trying to wipe out this debt before it becomes too much. Once it gets too out of control, it can make getting out of it like wading through quicksand. Don’t let debt get too high, to the point that you can’t afford to pay it off in one go.
Hopefully, with these tips, you’ll be able to save money in your household this year.
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(amazon author page) amazon.com/author/kenboyd
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/