So its 2023 and the rollercoaster we have been on financially in 2022 looks like it’s not going to let up in 2023. High inflation, low job force participation, governments manipulating interest rates, high demand from consumers and then the X factors, war’s pandemics etc. This is a unique point in time for global economics, any finance professional telling you what is going to happen is honestly full of @#$%. No one really knows, things are very unpredictable and on top of all that in the U.S. 2023 will start the 2024 presidential election process in earnest which will destabilize economic outcomes more.
So how do you “weather” this and get by? To be honest there is really only 2 things you can do directly to ensure you get through this. The first is increase your income, the second is decrease your spending. Now ideally you do both at the same time but one or the other should produce the outcome of you have more disposable income. Simply put, you should have more cash to spend or save and that’s what we want. Now increasing income can be a new job, a side hustle etc. Cutting expenses? Only you know what you can cut.
The point here is you need to increase your surplus cash anyway you can and bank it. Like I have said in other finance pieces basically increasing your “rainy day” fund. You see the finance industry will throw a lot of terms at you, nuanced financial strategic plans, and language that requires a financial planner to unwind. It’s how they make money, keeping you confused and frightened. Personal finance is a lot like losing weight, there is only really one way to lose weight, you eat less calories then you burn every day.
Don’t over complicate your personal finance. Spend less then you make. It’s a simple concept that requires discipline and planning to pull off. No one is going to do this for you, you have to do it. If you do you will create excess of cash that can be used to “weather” the financial storm or better, enable you to make purchases now that you otherwise weren’t able to because you did not have the discipline to create this excess.
Personal finance is a long term play. Be consistent, have a plan, get disciplined. You can do it, and if you achieve even modest results it can be very liberating.
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