Top 8 Tips to Strengthen Your Financial Position in 2023
Many of us will start thinking about what we want to achieve in the new year to make the most out of 2023.
For most people, this will include prioritising their financial health, making changes and adopting habits that will strengthen their financial position this year.
With this in mind, here are our top 8 tips to help you boost your finances.
Give your outgoings a spring clean.
The best way to start is to get an overview of your outgoings for the previous year to set yourself up for a financially savvy year. This will allow you to put your finger on exactly where your money goes each month and indicate which expenses you should aim to reduce in the coming year.
What’s more, as you look at your outgoings, you’ll probably notice a couple of useless expenses (that you’re still paying for, regardless). This could include long-forgotten gym memberships, subscriptions to apps, online services, news outlets and more.
The end of the year/start of the new year is the perfect time to unsubscribe and save yourself hundreds in 2023.
Upgrade your savings account.
Thanks to rapid inflation and interest rates – without this rise applying to many savings accounts – our savings aren’t going as far.
However, savings accounts offering higher interest on your savings do exist. By shopping around for the proper savings account, you can earn hundreds (or even thousands) more per year when you transfer your savings to one of these accounts.
You could also use this as an opportunity to switch to a ‘hard to reach’ savings account, which makes it easier for you to protect your savings and grow your money.
Start a side hustle.
An obvious way to strengthen your financial position is to make more money. However, how much we make often isn’t in our control when employed.
This is why starting a side hustle – such as taking on an extra job, freelancing, or starting a small business – is something to consider in 2023 to boost your income.
Make use of cashback.
By using particular credit cards – or even certain bank accounts – you can get cashback as a reward for making purchases.
Depending on the cashback vehicle you’re using, you might have the opportunity to select which spending category you earn cashback with. So make sure to choose the category that will prove the most financially beneficial to you over the long term, considering your typical shopping habits.
Prioritise paying off debt.
While saving is important, it can sometimes be better for your finances to prioritise paying off your debt – especially high-interest debt such as from credit cards.
Often the interest earned on this kind of debt outweighs the amount you could save in the same period – in other words, you’ll end up wealthier if you prioritise paying off this debt before you begin a serious effort to save.
Start using money-saving browser extensions.
Another quick and easy way to avoid wasting money is to install a digital coupon browser extension, such as Honey or Cently, which can help you save money each time you purchase online.
By trawling across the internet for the best coupons and discounts, these browser extensions automatically apply savings to your checkout when you buy from stores online.
Begin an investing habit.
While saving money is a smart financial move to safeguard against financial emergencies, and to reach shorter-term financial goals, investing can help you to grow your capital rather than maintain the amount you have.
By building a diversified portfolio containing different asset classes and investment vehicles, you can mitigate risk on your investments since each will be affected by other market influences.
Having said this, it’s important to note that investing isn’t a fool-proof way to grow – or even protect – your finances since the wrong investment choices can lead to you losing capital.
Work with a financial advisor.
To implement the best strategy to strengthen your financial position in 2023, working with a financial advisor is an excellent investment.
Financial advisors work with clients, advising them on investing, saving and how they can most efficiently reach their short and long-term financial goals – including up to and beyond retirement.
Working with a financial advisor is a great way to boost your financial knowledge and help you start important financial habits such as investing and saving for retirement, strengthening your financial position in both the short- and long term.