2023 Money Mindset
As we step into 2023, we could be facing an even more challenging time with The Bank of England predicting higher interest rates and inflation to squeeze UK households.
We’ll need resilience in all areas of ours lives during this coming year and this will mean physically, mentally and financially.
Try and keep your physical body strong and healthy with plenty of exercise, hydration, healthy foods and lot’s of sleep. When we are in our best shape physically our mental health will also be stronger too to cope with life can be throwing our way.
For this article, I have researched some top financial experts to understand what they are suggesting to bullet proof our finances for 2023.
The top three tips I have found are:
1. Build a financial emergency fund
2. Reduce your outgoings
3. Increase your income
Jeremy Schneider, founder of the Personal Finance Club, a website which sells financial education courses on budgeting and investing, thinks we should all have between 3 and 6 months worth of financial expenses saved.
Having this money saved and available will ensure if you lose your job or have ill health you can at least be certain that financially you have some sold ground.
Another way of improving our finances is to cut down on our expenses. Choosing to bring your lunch to work and only buy 1 coffee a day or reducing the number of streaming subscriptions you have can save money across the year.
Some people are renting out their spare rooms as an AirBNB or searching their homes for items to sell to release extra money. How about renting out your home to a film set? We did this and it’s so much fun!
Emilie Bellet, founder of educational finance site Vestpod and host of the Wallet Podcast, tells people to scrutinise their spending habits: "When we recognise what specific emotions drive our impulsive spending, we can then be more mindful about our decisions.” Are you a person that constantly spends money on new clothes or maybe you're using online shopping to stop you feeling bored? Have a quick review of your spending habits and see if you can pick out where most of your money goes.
A great way to increase our saving power is by building our income with extra work on top of our normal jobs. This way of working is called “The side hustle” With employment at really healthy levels in the UK some people of doing more than one job and comfortably fitting it all in. People are also finding extra work like dog walking, baby sitting or doing market research. If you’re a social media fan how about considering some marketing affiliation where you can earn a commission by recommending products?
There is a world of opportunity to earn some extra money, meet new people and even have fun!