In 2023, it is becoming harder than ever for people to keep control of their finances. In the last year, inflation levels have risen considerably in many countries around the world. In part, this has been due to the ongoing war in Ukraine, which has pushed up the price of certain commodities including food and energy costs. In addition, there is an emerging cost of living crisis in the Western world, which is having a severe impact on many peoples purchasing power and their ability to save for the future. However, with some smart planning, it is possible to still save money each month and create a secure financial plan. In this article, three examples of ways to save money, invest or budget more effectively will be explored in detail.
A broad investment portfolio
If you can set up an investment fund and add to it each month, this can be an ideal way to plan for a secure financial future. Many people find that once a monthly budget has been created, there is the potential to cut back on certain luxuries or non-essential purchases and divert these funds into an investment pot. It is worth speaking to an independent financial adviser who has knowledge of the stock market to get advice on medium- and long-term investments that give the potential for significant returns over a period of years. However, it should be recognized that the stock market is experiencing higher levels of volatility at present due to world events and other geopolitical factors. Because of this, it is vitally important to build a balanced investment portfolio that covers a range of markets and stocks. Ensure that you invest some of your capital in low-risk, long-term markets, such as in the gold market and index-linked funds that are tied to inflation levels.
Separate savings account
If you do not feel sufficiently knowledgeable to invest in the stock market, or you view it as too high a risk, it can be important to look for more conventional methods of planning for a secure financial future. As interest rates are currently rising, so too are the interest rates being offered on consumer savings accounts. Now is a good time to open a dedicated savings account and put a small amount of your income into it each month. Setting up a direct debit from your main bank account to the savings account can be an easy way to make this possible.
Stick to an entertainment budget
As a final point, it is important to budget for your household’s entertainment needs. Streaming services and other entertainment subscriptions need to be accounted for as part of an overall entertainment budget. If you enjoy playing at a real money online casino as part of your home entertainment, it is important to set firm limits for this expenditure each month and rigidly adhere to them. Home entertainment is an important part of modern living and can provide relaxation and excitement away from the world of work, but it is important to ensure that these costs stay within manageable limits. This will help to ensure that you have the potential to save or invest funds as part of the wider budget.Â
