It’s officially 2023. While a new year always brings with it feelings of hope and optimism, there’s also a lot of uncertainty and concern surrounding the economy. The rising costs have had a significant impact on everyone, forcing budgets to get tighter and tighter.
A recent GOBankingRates survey found that a third of Americans (33%) say inflation is their number one stressor going into 2023. You can see this especially when you consider the two thirds of people who say rising food and gas costs impacted their finances the most this year.
Aside from inflation, 23% of Americans say their top stressor going into 2023 is living paycheck to paycheck, and another 20% are most concerned about debt. Inflation seems to have taken quite the financial toll on American wallets, but you don’t have to let it get you down. Here are some ways to prepare your finances for rising costs in the coming year.
Try To Cut Back Where You Can
On your next trip to the grocery store, see if you can switch out some of your name brand products for the generic brand. While it might only save you cents in the moment, those savings will add up over time. If you continue to find small ways to cut back, you’ll be able to give yourself a little more breathing room in your budget.
Stick To Your Budget
No one’s sure when prices will stop increasing at the rapid rate that they have been. With that in mind, it’s a good idea to keep an eye on your finances and stick to a budget that allows you to keep contributing to your savings and retirement accounts. Try seeing if there’s any expenses you could cut back on or remove entirely. While one person may want to budget for their gym membership, another person will want to budget for their high-speed internet package. It’s up to you to determine which expenses are worth the cost.
Pay Down Credit Card Debt
Interest rates are high and projected to get even higher. If you’re carrying around any credit card or high interest debt, it’ll cost you a lot more in the long run. There are a number of debt repayment strategies you can use if you’re unsure where to start.
Don’t Neglect Your Emergency Fund
As much as everyone would like to avoid emergencies, they still happen every day. The best thing you can do for yourself and your family is to make sure there’s a nest egg squirreled away to cover the essentials should anything unexpected happen.
More From GOBankingRates