It’s time once again to make a fresh start. That’s the beauty of the New Year. We can all pause and reflect on the past year and figure out what we can improve in the year to come.
Along with promising to eat better this year and turbocharge our careers, many of us are also examining our personal finances and seeing how we can manage our money better in the 365 days ahead. Last year, a Statista study found that a top-ten resolution was “to live more economically,” showing that financial wellness is definitely a big concern.
If you’re focused on saving more money in 2023 and beyond, here are some resolutions you can consider adding to your list. They offer you dozens of smart, creative ways to help you reach your goal.
1. Save 20% Every Month
Here’s our first New Year’s resolution: Consider ramping up your savings by following the 50/30/20 budget rule. This wise formula says to save 20% of your income every month. The other 50% of your money should go toward your needs (housing, food, utilities, debt), and 30% can go toward discretionary items.
2. Try a Weekly Budget
With so many transactions coming in and going out (and so many of them being automated these days), keeping a monthly budget can seem intimidating. How do you track and manage all of the credits and debits? Are you going to overdraw your account? With a weekly vs. monthly budget, the amounts you have to track are smaller and more manageable, and you’re much more likely to stick to them. Make a spreadsheet of all your weekly income and expenses, and then decide where you can cut back to save money.
3. Decrease Discretionary Spending
Has your once-a-week latte habit become a daily thing? And exactly how many streaming platforms do you subscribe to? Spending money on entertainment, takeout, coffee, and other wants can add up quickly. So when you create your budget, figure out ways that you can reduce spending on things you don’t actually need.
4. Switch Up Your Budget Cuts
Is one of your New Year’s resolutions to reduce your spending? If so and you try to slash everything at once, you can wind up feeling deprived and losing motivation. Instead, you might try cutting back on, say, those fancy coffees one month and on movies the next. You’ll still save money, but the rotating nature of cuts and the challenge of “no flat whites this month” can keep it interesting.
5. Stop Storing Your Credit Card Information
Yes, adding your credit card details to your online accounts makes it super easy to check out, which is exactly the problem. That simplicity can also lead to increased spending on impulse purchases. Instead, remove those saved cards and force yourself to manually type in your credit card number when you want to purchase something. If you have to get up to find your card, that can be a way to avoid impulsive purchases that you don’t actually need.
6. Find a Savings Buddy
Economizing can be easier when you have a kindred spirit to support you. If you have a friend or relative who is also trying to save money or has succeeded at doing so in the past, recruit them to help you. The two of you can text when you need advice on a big purchase you are contemplating or when bills pile up and stay strong together.
7. Schedule Automatic Transfers
When your paycheck hits your checking account, it likely makes you feel flush and ready to splurge a little. Instead, pay yourself first. Make it a 2023 resolution to set up automatic transfers from your checking to your savings account. All you have to do is set the amount and the date you want the recurring transfer to occur. Then, you can watch your savings blossom automatically in no time.
8. Earn Credit Card Rewards
If you’re not already earning rewards with your credit card, make 2023 the year to do so. With credit card rewards, you can get cash back when you make purchases. Then, once you reach a certain amount, like $25, you can automatically transfer it into your savings account. As long as you pay off your balance in full each month and don’t overspend, credit cards can be helpful when it comes to reaching your savings goals.
9. Round Up Prices
If you haven’t already tried a round-up app, consider doing so this New Year. These work by, say, charging you $7 for a purchase that really cost you $6.35, and depositing the additional 65 cents into savings or putting it towards your debt. Acorn and Qoin are a couple of the ones to research; they can help move you towards financial security.
10. Pay Off High-Interest Credit Cards
Credit card interest rates are notoriously high, with rates averaging just over 19% in November of 2022. If you’re not careful, you could be spending hundreds of dollars every month on credit card interest. Create a plan to become debt-free for 2023 and prioritize paying off your high-interest credit cards. For example, you could use the debt avalanche method, where you pay off the card with the highest-interest rate first and then move on to the card with the next highest interest rate, and so on.
11. Sign Up for a Balance Transfer Credit Card
If you have credit card debt, you may want to pay it down faster as a New Year’s resolution in 2023. Signing up for a balance transfer credit card could help. You’ll pay 0% interest on your debt for a certain period of time (say, six to 18 months), before your interest shoots back up. Just make sure you pay off your balance before that introductory period is over or else you’ll be right back where you started. And if the interest rate is higher than your current credit card, your situation could be made worse if you don’t pay it off in time.
Yes, it’s more convenient to toss cans and bottles in the trash. But each one probably could net you five to 10 cents if you redeem them, which is typically easily done at your local supermarket. Plus it’s good for the planet. While it may not yield the down payment for a house, every little bit of cash put into savings can help, especially when compound interest kicks in.
13. Find a Side Hustle
If you have any free time at night or on the weekends, then you can freelance or work some other sort of side hustle. Whether it’s tutoring school children or driving for a rideshare service, those extra dollars can make a serious impact on your savings. There is plenty of low-cost side hustles to consider. Even renting a room in your house on Airbnb could put hundreds or thousands of extra dollars in your account every month.
14. Sell Your Unwanted Items
Decluttering your home may be another New Year’s resolution you have for 2023. Knock out that resolution along with your money-saving resolution. There are plenty of places to sell your stuff, from clothing to electronics to cookware, whether it’s gently or never used. Consider sites like eBay, Craigslist, and Facebook Marketplace.
15. Save for Retirement
If you’re young, you may feel like you don’t have to worry about retirement just yet. But the truth is that time is likely to pass faster than you think it will. Plus, if you start saving right away, you’ll make more money on your investments through the power of compound interest. Take advantage of your company’s 401(k) matching policy, if they have one, and beef up your retirement savings in the New Year.
16. Create an Emergency Fund
If you were to lose your job tomorrow, would you have enough money to last you until you found something new? What if you had a medical emergency or your house suddenly flooded? Having at least three to six months’ worth of savings in an emergency fund will help you cover any sudden, unexpected expenses, and help ensure that your budget and financial goals won’t be derailed.
17. Use Coupons for Groceries
If you’re not a couponer already, 2023 is a great time to start saving this way. Check your weekly newspaper for the latest deals and discounts at your local grocery stores. Adjusting your purchases to match that week’s sale items can help you save. You can also clip coupons from sites like Coupons.com and P&GGoodEveryday before your weekly shopping trips for more savings.
18. Buy a Generic
Did you know that generic products might be the same as name-brand products but without fancy labels? Whether you’re at a grocery store or a pharmacy, look into buying those store-brand and generic products instead, because you could end up saving a lot and still having high-quality products.
19. Choose a Day to Review Your Finances
In order to stay on top of your financial goals in 2023 (or any year, in fact), it’s helpful to set aside one day a week to go over your spending. Pay your bills and check your accounts on this day as well to ensure you’re meeting your benchmarks.
20. Create an Investment Portfolio
The average interest you’ll earn on a traditional savings account is only 0.21%. But if you research different investments like stocks and bonds, you’ll see that the market typically earns 10% annually. Perhaps 2023 is a good year to invest in the market or invest more; just make sure you invest according to the risk you are willing to take. For instance, if you don’t have much to invest, then you might stick to investing in high-performing, more established, and stable companies. But if you have money to spare, you may try investing in riskier, smaller, and newer companies.
21. Look Into a High-Interest Savings Account
A high-interest savings account is going to give you more bang for your buck when it comes to your savings. The rates frequently fluctuate, but they are averaging around 2.75% to 3.25% annually in November of 2022 — much higher than the rate of a standard savings account rate.
22. Use Cash Instead of Credit Cards
If you use cash instead of credit and debit cards, you’re going to be much less likely to spend money in 2023. Credit and debit cards make it easy to swipe without thinking about the consequences. Paying $100 in cash for your groceries is going to have much more of a psychological effect than simply swiping your card, and it can help encourage you to save more money.
23. Look Into a New Bank
Are you aware of all the monthly bank fees you’re paying just to keep your account open? If you overdraft your account, do you get charged a hefty fee? Does your bank charge you to use an ATM outside of their network? Examine all the fees you are currently paying and then look into competitors to see if they charge lower fees — or perhaps no fees at all. Online banks vs. traditional banks typically charge fewer (or no) fees and pay higher interest rates.
24. Start a Coin Jar
Let’s go old-school in 2023. Put all your loose change into a coin jar, and then at the end of the month, take it to your bank to cash it in. This is better than using a Coinstar machine, which will take 11.9% of your money when you convert it into cash. Note: You may have to roll the coins before depositing at the bank, but this can be done while listening to your favorite podcast.
25. Use Financial Apps
Financial apps are an easy way to keep track of your spending in the New Year. All you have to do is link your financial accounts to these apps to see how much you’re spending and what you’re spending your money on. These apps will even give you suggestions on how to save money and improve your finances, as well as remind you when bills are due. Your bank is likely to offer a tool like this. If not, some of the popular ones include Mint, YNAB, and EveryDollar.
26. Negotiate Your Bills
Think you’re spending too much on cable? Is your cell phone company ripping you off? Be a savvy consumer, and tackle it in 2023 to save more. Call your service providers, and try to negotiate a lower monthly rate. If you aren’t successful, you could always use services like Trim to negotiate your bills down so you can save more every month.
27. Do Meal Prep
You know how it goes: Suddenly, it’s 7 pm, you’re starving, and haven’t even started to think about dinner so you wind up ordering in. Avoid that in the New Year by preparing your meals in advance. That way, you will have food in the fridge when you’re hungry, and you won’t be tempted to eat out. It’s also a good idea to bring lunch to work so that you won’t be tempted to purchase food on your break with coworkers.
28. Cancel Automatic Subscriptions
Go through your bank statements to see if there are any automatic subscriptions you don’t need or remember signing up for. Cancel them immediately. If a company was charging you without your knowledge, you may be able to request your money back.
29. Decrease Energy Costs
Not having an energy-efficient home can be costly. You may be wasting hundreds of dollars each month because you’re leaving the lights on or running the heater or A/C for hours on end. You can make a few changes like sealing up drafty windows and attics and using LED light bulbs to start saving money on your utility bill in 2023.
30. Unsubscribe from Email Lists
If you have a problem with making impulse purchases, then unsubscribe from your favorite retailers’ email lists. That way, you won’t be as tempted to spend because you’ll no longer receive news about flash sales or buy-one-get-one offers.
31. Trade in Your Gas-Guzzling Car
Gas prices have fluctuated considerably lately and are still quite high. Trading in your SUV for a vehicle with a smaller tank could be a smart move. Hybrid and electrical vehicles are good options as well. Though you may pay a premium for them up front, you’ll save a lot on gas in the long run.
32. Ask for Discounts
Here’s a New Year’s resolution to adopt: Whenever you’re purchasing tickets, booking a hotel, or going to an event, ask if there are any discounts. You may be able to snag a discount if you’re a student, a senior, a member of the military, a resident of the state, or even a AAA member.
33. Stop Buying Retail
When you go to retail stores, you’re going to pay full price. Instead, when reasonable, look for used items on sites like eBay and Facebook Marketplace. Flea markets and thrift stores may also have the goods you might need, at steeply discounted prices.
34. Join a Warehouse Club
Enlist a friend to join, too, and then share the spoils of buying in bulk. Since the likes of Costco and BJ’s tend to have mega-sizes and packs, you can split the low-cost food and other items you purchase. Say, you buy a dozen burgers and keep half; your friend buys the same number of buns and gives you six. It’s a win-win.
35. Go on a Spending Freeze
Don’t spend any money for a week and see how you feel. This means you’ll need to brew your own morning coffee and eat homemade meals. You’ll also need to avoid shopping late at night on Amazon, but at the end of the week, you should be able to more easily distinguish your wants from your needs. This will help make budgeting that much easier.
36. Save Your Tax Refund
This year, instead of spending your tax refund on a new pair of Jordans or a vacation, put it into your savings. It’ll accrue interest and you can then put it toward a larger purchase down the line if you want.
37. Work Out at Home
This one is a double whammy if you want to get fit in the New Year, too. Purchase some weights online, and tune into your favorite trainers on YouTube to start burning fat and gaining muscle. You can cancel your expensive gym membership and forget pricey personal trainers while feeling better about yourself in 2023.
Looking Into SoFi Checking and Savings
By opening a bank account online like SoFi Checking and Savings®, you can accelerate your savings in the New Year. Get a competitive APY, pay no account or overdraft fees, and gain access to 55,000+ free ATMs at Allpoint locations.