The number may surprise you.
the main points
- Inflation made it difficult for many people to make ends meet last year.
- Despite this, many consumers have been able to increase their savings.
- If your savings can use a lift, consider watching your discretionary spending and maybe even get a side hustle to bring in more cash.
To say that consumers have Hard time with inflation In 2022 that would be an understatement. Many people had no choice but to take on debt credit cards And only use their savings to cover their basic bills. Many people have also had to make difficult choices, such as cutting back on the things that are important to them, due to the rising cost of living.
It’s somewhat surprising (in a good way), then, to hear that so many consumers managed to save money in 2022. In fact, a recent Wealth Watch survey by New York Life found that Americans added an average of $5,011 to their account. Savings accounts last year. And that’s impressive.
That said, if you are he did not do Add to your savings in 2022, don’t worry. Many people have barely managed to cover their bills due to inflation, so you don’t have to worry about a lack of savings growth.
But there are steps you can take to meet your savings goals in 2023. Here are some steps to put them to use.
1. Put yourself on a budget
Sticking to a budget won’t make your bills any less expensive. But it may help you manage it better.
Once you are on a budgetIn it, you’ll be able to see how much you spend each month on essentials versus wanted items rather than needs. This may prompt you to change some of your spending habits, thus freeing up more money for saving.
2. Spend carefully on unnecessary things
Spending a night out with friends is fun, and so is eating out. But let’s face it – these are things you can live without. And if you’re willing to cut back drastically, you may make significant progress on your savings goals in 2023.
To be clear, you don’t have to say you’re going to do this Start Go to the movies or have dinner at a restaurant with friends. Instead, you should do these things sparingly if you’re keen on saving, and if you can’t save the way you want to in 2022.
3. Get a side hustle
Cutting back on spending may help you save more money this year. But if you really want to boost your savings solidly, consider getting Side hustle.
The money you earn from this job won’t go towards things like rent or car payments, because you’re already paying for those things. So you’ll have a great opportunity to bring the bulk of what you earn in the bank (minus what you owe the IRS, assuming you pay as a freelancer and don’t have taxes withheld from your earnings up front).
Lots of people struggled to save money in 2022, so even though consumers as a whole saved an average of $5,011 last year, rest assured many people undoubtedly saved $0. In fact, all it takes is a small percentage of super savers to pull the average amount of savings upwards. So most people may have saved between $0 and $500 in 2022, but since a select few saved $100,000, the average comes out to $5,011.
Therefore, the important point is not to fall back on the past year. Instead, look to 2023, and do what you can to meet your savings goal.
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