The number may surprise you.
- Inflation made it difficult for many people to reach two destinations last year.
- Despite this, many consumers managed to increase their savings.
- If your savings could use a lift, consider looking at your discretionary spending and you may be looking to bring in more money.
To say that consumers had a tough time with inflation in 2022 would be an understatement. Many people had no choice but to put their credit cards in debt and dip into their savings just to cover their essential bills. And many people have also had to make hard choices, like cutting back on things that are important to them, because of the skyrocketing cost of living.
It’s surprising (in a good way), then, to hear that many consumers managed to save money in 2022. In fact, New York Life’s latest Wealth Watch survey found that Americans put an average of $5,011 into their savings accounts last year. And that’s great.
That said, if yes was not add to your savings in 2022, don’t sweat it. Many people have barely managed to cover their bills due to inflation, so there is no need to suffer from the lack of savings growth.
But there are steps you can take to reach your savings goals in 2023. Here are some to employ.
1. Put yourself on a budget
Sticking to a budget won’t make your bills cheaper. But it could help you manage them better.
Once you’re on a budget, you’ll be able to see how much you spend each month on essentials versus items that are needed rather than needed. And that might encourage you to change some of your spending habits, which creates more money to save.
2. Discard unnecessary items carefully
A night out with friends is fun, as is eating out. But let’s face it – these are things you can live without. And if you’re willing to cut back significantly, you might make big progress on your savings goals in 2023.
To be clear, you shouldn’t say you will ever go to the movies or dine at a restaurant with friends. Rather, you should do those things sparingly if you want to save, and if you didn’t manage to save the way you wanted to in 2022.
3. Get a side hustle
Cutting back on spending could help you save more money this year. But if you want to give your savings a strong boost, consider getting the other side.
The money you earn from that job won’t be earmarked for things like your rent or car payments, because you’re already paying for them. So you have a great opportunity to keep most of what you earn in the bank (minus the amount owed to the IRS in taxes, assuming you are paid as a citizen and taxes are not withheld from your earnings in advance) .
Many people struggled to save money in 2022, so even though consumers saved an average of $5,011 last year, rest assured that many people undoubtedly saved $0. In fact, it only takes a small percentage of super savings to pull up the average savings. So most people may have saved $0 to $500 in 2022, but because a select few saved $100,000, it’s an average of $5,011.
The point, then, is not to go down by last year. Instead, look ahead to 2023, and do everything you can to reach your savings goal.
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