Want to Save More Money in 2023? Here's How

A few sacrifices on your part could lead to big results.

If you're closing out 2022 unhappy with the state of your savings account, you're no doubt in good company. Many people had a hard time saving money this year due to having to spend more on living costs. In fact, a lot of people actually had to dip into their savings to keep up with their bills and avoid credit card debt.

At this point, it's a touch late to make meaningful progress on your 2022 savings goals since the year is almost over. But you might have much better luck in 2023 -- especially if you're willing to do these things.

1. Follow a budget

A budget won't make your actual bills cheaper. But what it will do is help you better see where your money is going and identify ways to trim your costs. 

If you're new to budgeting, worry not. There are different budgeting apps you can use to make the process easier, many of which are free. And if you don't feel the need to use an app, go old school. Write down your expenses on paper, or use a spreadsheet on your laptop to keep track of your bills and spending.

2. Cut one major expense

Canceling a streaming service that costs you $15 a month might help you make a small dent in your savings goal. But it may not get you where you want to be by the end of the year. 

That's why you may need to get on board with the idea of cutting out a big expense. If you're able to move to a new apartment that costs $400 less per month to rent, that'll help you save almost $5,000 in the course of the year. 

Similarly, you can look at selling your car if you now work from home and can get by without a vehicle. Even if your car is paid off, you can save a lot of money by virtue of not having to pay for maintenance or auto insurance.

3. Get a side hustle

Living costs could remain high in 2023 if inflation levels stay elevated. And so even if you're willing to budget and cut some big expenses, you might still struggle to meet your savings goals. That's why it could pay to pick up a second job. 

The beauty of a side hustle is that your earnings won't be earmarked for existing bills. Once you pay the IRS its share of your income, you'll be able to take the rest and stick it directly into your savings account. 

Look ahead to 2023

It can be discouraging to close out the year without having met your personal savings goal. But try not to let that get you down. 

The past 12 months have been really tough on a lot of people, and higher living costs have made it extremely difficult to build savings. So at this point, your best bet is probably to look ahead to 2023 and come up with a plan that allows you to make great progress with your savings, no matter what that means in your book.