After a sluggish year due to the pandemic, we have a better cash flow this 2022 with a new business. But the surging inflation rates still means we need to keep track of our budget. For 2023, we plan to save up for a car that we can use for the business. It’s an ambitious goal which may not materialize in just a couple of years. But with a plan, we can get close to reaching our dreams.

For our plan to save for a car, we checked current vehicle prices at Zigwheels and it looks like we need between 1M – 1.5M for a brand new car. We then checked a savings calculator to estimate how soon we can save that amount. In their website, can adjust some parameters like years to save or the monthly contribution to find a plan that is attainable.

Our main goal for 2023 is to save as much as we can to reach our savings target sooner. Here are the things we would do to increase our savings this year.

Deposit at digital banks.

Digital banks typically offer higher interest rates than traditional banks. Many have promos that offers up to 6% interest. Higher interest rates means we reach our goal earlier. Additionally, digital banks have low or no account fees and often have no minimum balance requirement.

Lessen the use of credit cards.

Paying with cash makes it easier for us to keep track of our finances and be more mindful of our spending. This helps us stay within our budget and avoid unnecessary purchases. According to a 2016 research, consumers tend to spend more when using credit card compared to cash.

Buying cheaper alternatives.

It’s time to compare prices between different brands and stores. We would be surprised how some brand or stores are significantly higher. We now tend to buy generic brands since they are cheaper. We avoid imported brands and produce since they are more expensive. Store loyalty programs are great too since they can give access to exclusive sales and discounts.

Cook and eat at home.

Cooking at home can be a great way to save money. We can control what ingredients to use. We can buy ingredients in bulk to save on the price. We can even reduce food waste by planning our meals. As an added benefit, home-cooked meals are generally more nutritious since we can choose healthier options to reduce fat, sugar and salt intake.

By changing our spending habits, we found out that we can reach our savings target faster by 6 months. A more aggressive savings can further shorten it by 6 months more.

Saving money takes some commitment and dedication, but we believe that it can be done. The earlier we start, the sooner we reach our goals.

Have a prosperous 2023 everyone.