5 Strategies to help you improve your finances in 2023

It's 2023 and there's no better time than now to have control of your finances.

With high inflation and a rise in interest rates, commit to change your habits and improve your finances.

All in all, it’s more important than ever before to get in control of your money and start improving your finances.

Here are 5 practical habits that you can easily adopt to gain full control over your financial journey.

1. Set your financial goals

Many of us are accustomed to setting goals for our health or career, but we often overlook the importance of doing the same for their finances. However, just like any other aspect of life, our financial situation can only improve if we actively and deliberately work towards it. This is where setting specific financial goals becomes crucial.

Plan out :

- Short-term goal to achieve within the next three years

- Medium-term goal to achieve between three to ten years

- Long-term goal of over ten years from now.

Remember without setting money goals, you’ll leave your finances up to luck, and luck isn't the reliable way to get to success.

2. Track You Expenses

You can't save your money unless you know where it's going.

Start tracking your expenses for a month, this will give you an idea of where you spend the most and where could you save.

- Check you bank account and credit card statement for last 30 days.

- Categorize them , this will help you understand where you spend the most.

- Analyse and then come up with the expenses that can avoid/reduce.

3. Use the 50/30/20 Budgeting rule

When you create a budget you know whats the money inflow and how much is the outflow, this helps you to have control over it.Here comes the 50/30/20 budgeting technique.

You divide your monthly income (after-tax) into three big categories:

50% Needs (Housing, utilities, groceries, etc.)

30% Wants (vacations , restaurants etc.)

20% Freedom (saving, investing, paying debt)You can always adjust the percentage according to your personal preference and situation.

Remember a well-thought-out, planned, and realistic budget is a financial tool that facilitates your financial dreams, goals, and aspirations, making them become a reality.

4. Start A Side-Hustle

As billonaire Warren Buffett said, “If you don’t find a way to make money while you sleep, you will work until you die.” So consider starting a side hustle.

Build a business that aligns with your passions and expertise.With the internet, it’s never been such easier to start a side-hustle and make an extra $500 — $1000 per month from your device.

Here are few things you can try starting

- Create an e-book or online course in which you teach specific skills.

- Start a blog based on your expertise and monetize it sing Google Adsense.

- Building a presence and online business(Art Of Twitter) and monetizing it.

Relying on a single source of income can leave you vulnerable to unexpected events such as job loss or economic downturns.

Having multiple income streams provides a safety net, ensuring that if one source diminishes or disappears, you still have other sources to rely on for financial stability.

5. Invest In Yourself

Investing in yourself your skills, knowledge, and network has the highest return on investment compared to most financial assets.

Try picking up a new skill this year. Learn about investing and managing your money. Or deepen your knowledge of something you’re passionate about.Whether it’s through books, online courses, one-on-one coaching, or live seminars prioritize investing in yourself.

As Benjamin Franklin said, “An investment in knowledge pays the best interest.”That concludes our top five strategies to help you improve your finances in 2023.

We hope these insights have provided you with valuable guidance to navigate the financial landscape with confidence. Remember, your financial well-being is a journey that requires commitment and discipline. By applying these strategies and making informed choices, you can pave the way for a more secure and prosperous future.