Former Boston Federal Reserve President Eric Rosengren predicts that the United States will “likely” have a recession in 2023, considering that the Federal Reserve would probably increase interest rates earlier than anticipated in response to persistent inflationary pressures. Even with the rapidly changing economy, saving money is necessary for sound financial health. But sometimes, it’s hard to start in this present and uncertain future. With that said, you can use plenty of strategies to save money, no matter your economic situation. Here are five of them so you can get started on your road to financial freedom in 2023 and beyond!
5 Money-Saving Strategies for Black Americans in 2023
Create and follow a spending plan
A spending plan is more than just checking your account balance or keeping track of your money coming in and going out. It’s about creating a plan for your finances to help you reach your goals. Start by writing down all your fixed costs (rent/mortgage payments, utility bills, student loans, etc.) and discretionary expenses (entertainment, shopping, etc.). Once you have these numbers written down, develop a plan to ensure that all of your necessary expenses are paid before anything else. This will help you track where your money is going each month and ensure you aren’t overspending on unnecessary items.
Invest in your growth
This means taking advantage of opportunities that can help increase your earning potential. This could include continuing education courses, certifications related to your field, or even starting a side business. Taking classes or pursuing other career development opportunities can offer higher wages over time which can translate into more savings down the line. Additionally, starting a side hustle or business can also provide supplemental income until the venture takes off fully.
Automate savings
Automating savings is an excellent way to ensure that you always have money set aside for an emergency fund or other long-term goals like retirement planning. Setting up automatic transfers from your account into a separate savings account can also provide comfort, knowing that some portion of every paycheck is being set aside without having to think about it each month. You may even find financial institutions that will match a certain percentage of whatever amount is being saved each month, doubling what would be available when needed most — definitely worth looking into!
Research discounts & price comparisons
Researching discounts ahead of time helps ensure that you don’t miss out on any deals or specials that could potentially save you lots of money over time. Additionally, doing some research on different products before purchasing them can also be beneficial as prices vary greatly between retailers and websites — sometimes even within the same store! Shopping around ahead of time can also prevent impulse purchases which often lead to overspending so take advantage when possible!
Take advantage of tax credits & deductions
While taxes may not be something anyone looks forward to paying, plenty of credits and deductions are available to those who qualify, which can significantly reduce their overall tax bill come April 15th every year! Doing some research ahead of time on what credits apply based on income level and type (such as owning rental property) could mean big savings come filing season — so make sure not to miss out!
Conclusion
Saving money requires commitment, but with dedication and creativity, it’s absolutely possible for anyone — especially Black Americans who often face greater economic struggles — no matter their current situation. The key is understanding how best to manage what resources are currently available while finding new ways to increase income potential when possible too! By following these five tips above, saving hard-earned dollars will hopefully become second nature in 2023 and beyond! Good luck saving everyone!
