How to Save Your First $1,000 in 2023

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It’s a goal worth striving for. 

It’s fair to say that 2022 has been tough on a lot of people. Inflation has driven the cost of living upward in a very big way. And because so many people live paycheck to paycheck without any money in savings, higher prices have forced many consumers to rack up credit card debt just to cover basic expenses.

If you don’t have any money in your savings to speak of right now, then it’s a good idea to focus on building some cash reserves in 2023. In fact, your goal should really be to put together an emergency fund with enough money to cover three full months of essential bills. That way, if you lose your job or get hit with a large unplanned expense, you won’t have to resort to debt.

Now if you’re starting with no money in savings, you may not manage to complete your emergency fund in 2023. And that’s okay. The most important thing to do is save something and then keep working toward your ultimate goal.

In fact, you may even want to tell yourself that you’ll aim for $1,000 in savings in 2023 and take things from there. And if the idea of saving even that much seems daunting, here’s how to go about it.

1. Get on a budget

A budget won’t magically make your living costs less expensive. But what it will do is give you a clearer picture of what your expenses look like and where there may be room to cut corners. That could help you eke out a little money each month to put into the bank.

Plus, budgeting is something you can pretty much automate once you set yourself up. That’s because there are different apps you can use that link up to your credit cards and checking account so your spending is tracked and categorized automatically.

2. Pick one expense to cut

If you’re already living a very frugal lifestyle, then you may not have so many expenses to cut back on. But there may be something you can manage to spend a little bit less on.

Say you order lunch once a week to give yourself a break from having to prepare it and bring it to work. That’s certainly a reasonable expense. But if that lunch costs you $12 a day and you can make your own for $2, it means you’re technically spending $40 extra a month. If you save that $40 a month, you’ll practically be halfway to your $1,000 goal.

3. Get a side gig

If your earnings aren’t all that high and you’re not in line for a nice raise for 2023, then it pays to look at getting yourself a side hustle. Even if you only have a few hours to devote to a gig each week, that alone could get you to your $1,000 savings goal.

In fact, there are many side hustles that let you work at your own pace or set your own hours. If childcare is an issue for you, for example, you can also seek out a side hustle that can be done from home, like data entry or billing work.

Saving $1,000 in the course of a year might seem like a tall order at a time when everything has gotten so expensive. And to be clear, it may not be the easiest thing to do. But it’s important to try your best, because having that $1,000 in the bank the next time life doesn’t go your way could spell the difference between accumulating a credit card balance and staying debt-free.

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