It’s a goal worth striving for.
- Building savings can protect you from unplanned bills.
- While $1,000 probably isn’t enough for a full emergency fund, it’s a step in the right direction.
- You can get there by budgeting, cutting just one expense, and maybe picking up a side hustle.
It’s fair to say that 2022 has been a rough year for many. Inflation has raised the cost of living significantly. And with many people living paycheck to paycheck with no savings, high prices have forced many consumers to pile up credit card debt just to cover basic expenses.
If you don’t have money in savings right now, it’s a good idea to focus on building cash reserves in 2023. In fact, your goal should really be to build an emergency fund with enough money. cover three full months of basic bills. That way, if you lose your job or have a big unplanned expense, you won’t have to resort to debt.
Now, if you start out with no savings, you may not have time to top up your emergency fund in 2023. And that’s normal. The most important thing is to save something and then keep working towards your ultimate goal.
In fact, you might even want to tell yourself that you’ll have a goal of $1,000 in savings by 2023 and take things from there. And even if the idea of saving that much seems daunting, here’s how to do it.
1. Get on a budget
A budget won’t magically lower your living expenses. But what? will does is give you a clearer picture of what your costs are and where there might be room to cut back. It can help you save a little money each month to put in the bank.
Also, budgeting is something you can pretty much automate once you set it up yourself. That’s because there are a variety of apps you can use to link up to your credit cards and checking accounts so your spending is tracked and automatically categorized.
2. Select one expense to cut
If you already live a very frugal lifestyle, you may not have that many expenses to cut back on. But it can be something you can spend a little less on it.
Say you order lunch once a week to give yourself a break from preparing it and bringing it to work. It is certainly a reasonable cost. But if that meal costs you $12 a day and you can make it yourself for $2, that means you’re technically spending an extra $40 a month. If you save that $40 a month, you’re practically halfway to your $1,000 goal.
3. Get a side gig
If your income is not so high and you are not preparing for a good increase in 2023, then it is worth paying attention to the side effects yourself. Even if you only have a few hours to devote to the gig each week, that alone can go a long way toward your $1,000 savings goal.
In fact, there are many side hustles that allow you to work at your own pace or set your own hours. If childcare is an issue for you, for example, you may also want to look for side jobs that can be done from home, such as data entry or billing work.
Saving $1,000 in a year can seem like a tall order when things have gotten so expensive. And to be clear, it might be the easiest thing to do. But it’s important to try your best, because having that $1,000 in the bank for the next time life doesn’t go your way could be the difference between racking up a credit card balance and being debt-free.
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