The year 2023 has just started, though it is moving fast already. Anyways, in 2023 you must optimize your money; you should! It is a year that will likely have an uncertain operating environment. In order to prepare for that, you must have your finances in order. Notice how we refer to money as currency. This suggests that money flows. This also suggests that you can optimize money. As in, you can make its flow in your life more efficient. Let us look at 4 ways you can optimize your money in 2023.
Live On A Shoestring Budget
When money is tight, living on a shoestring budget becomes a default thing, inevitable. However, it is prudent always to make that your operating principle. Living as if money is tight even when you have more than enough income. This can save you lots of money and present great opportunities for you. For instance, you might earn enough income to rent US$350 for accommodation. Yet you can still comfortably stay at US$200 accommodation. You might be able to afford to spend US$5 daily for lunch.
Yet you can spend zero by bringing food from or eating at home. I know of a business person in Masvingo who always drives home to have his lunch. This is someone who can afford to buy anything, anywhere. Yet he chooses to get have his lunch prepared and has it at home. This is akin to living on a shoestring budget despite having the money. This year make that your operating mindset. Let people talk, but you will reap the benefits in due course. There are always infinite ways to spend less.
Autopilot Your Savings
I am passionate about the subject of saving. In 2022 we dealt with that subject in several articles. I always encourage people to read the book, The Richest Man In Babylon. It was the first book that really drove the saving principle into my awareness. Saving is not easy for many, but it can revolutionize your money. Today the central point I want you to grasp is how you must save. You must put your savings framework on autopilot. That way, you spend before spending. Let me cite a practical example to make it clear. There is a lady I know who works at a clothing boutique.
She, her immediate boss, and 2 other work colleagues do a money club (mukando or stokvel). They make individual monthly contributions of US$100. At the end of the month, the immediate boss withholds US$100 from each of their salaries. This means they never get to handle the US$100 first. This effectively eliminates any possibility of being tempted to spend money on other things. That is what putting your savings on autopilot entails. Ordinarily, money clubs, in general by their nature, have an element of autopilot. You can always figure out other strategies to put your savings on autopilot. Make that your goal this year. Check out an article I did last year titled important guidelines on setting and accomplishing goals on saving money.
Keep Exploring More Income Streams
Like there are infinite ways to spend less, there are infinite ways to make more money. The average millionaire or billionaire has at least 7 types of income streams. This shows that you can never run out of ideas to make more money. Look up the article on passive income business ideas. There’s another on what you need to know before building multiple income streams. It will benefit you to go through those two articles. In 2023 always be on the lookout for ways to make more money. Strive especially to build passive income streams. That way, you will not feel overwhelmed. Starting multiple income streams can be addictive, so be sober-minded. Know when to stop; juggling too many balls can be disastrous.
Take Your Emergency Fund More Seriously
Many people do not usually prioritize their emergency funds. No one wishes things to go south, but at times, they do. That is why you need to anticipate evil and prepare for it. I have seen many people suddenly lose jobs or businesses and are left stuck. It is usually because they never took their emergency fund seriously when they were making money. The principle behind building an emergency fund is simple.
Look at your average fixed monthly expenses. These are things like accommodation, utilities, groceries, transportation, and the like. Let us suppose the total comes to US$150 per month. Your emergency fund goal is to have at least 6 months’ worth of your total fixed monthly expenses saved up. In this case, it would be at least US$900. If you have that much in your emergency fund, you are usually well-prepared to tackle any emergency. Start building your emergency fund now!
With these 4 ways, I can guarantee your money will be optimized in 2023. Optimization is not an accident; it is deliberately planned for. Money is actually an intelligent entity in a way. It rushes to where it is appropriately managed and flees from where it is poorly managed. That is why you need to optimize your money in 2023. The time to start is now!