Everyone needs to make more money in 2023. Let’s talk about my 5 step plan that will help you make more money in 2023 and stretch your money even further than before.
- 1. To make more money in 2023, you need to know where your money has been going in 2022
- 2. Value for money in 2023
- 3. Add income streams to make more money in 2023
- 4. Get your money to make money in 2023
- 5. Consistency
If you are someone who maybe isn’t great with spending, maybe you struggle to save money, or you just want to make more money in 2023, then this plan is going to help you get there. Of course, it isn’t tailored advice, so please consider your own personal circumstances when listening to people like me. Be sensible when trying to make more money in 2023 and definitely feel free to make adjustments to this plan where it suits you.
You are reading this article because you want to do better with money in 2023. Great! You probably recognise rising inflation, prices for energy going up, mortgage rates rising and so on. It might well be that you have to make some serious changes as to how you are using you money. I’m here to help with that with this 5 step plan, so stick with it right to the end and be ready to make some adjustments.
1. To make more money in 2023, you need to know where your money has been going in 2022
Everyone hates this line, but if you are struggling with cash in 2023, it’s vital to make a budget to know where your money is going and plan accordingly. This is not an exercise to suck all the fun out of your spending but rather to see where your money is sucking the fun out of your money right now! No frills, no interpretation, no spin… Just facts. Bare truths!
There is no judgement to be made at this point. It’s a fact-finding mission.
A budget is a financial plan that outlines how you will allocate your income and expenses over a certain period of time. It helps you to manage your money effectively and make informed financial decisions.
Examine everything in the outgoings for the last three months. It might not be fun but if you are serious about making changes and you want to make more money in 2023, then it starts here. Look at all the money you have spent in for the last three months.
Grocery bills, certainly. Maybe gadgets. Socialising. Sports. Subscriptions to TV or music services. Car payments. Electric bills. Phone bills. Takeaway food. Ice-cream. The list goes on. Find out where every penny you are spending goes and use that information in the next step (because this next step is so critical in making this 5 step plan come to life)
2. Value for money in 2023
It’s nobody’s business but your own how you spend your money in 2023. What you think is important to spend your money on is entirely your business. That is why I asked you to examine every penny you spent in the last three month in the previous step of my 5 step plan to make more money in 2023.
With this information at hand it’s now time to go through each of these expenses. Coldly and dispassionately decide what was good value and what wasn’t. What are you glad you paid for and what do you cringe at?
Are you spending too much money on groceries buying the premium brands in all departments? Maybe you are a serious foodie, though, and that’s what you like to do? Is that £75 gym membership keeping you fit and healthy, socialised and motivated with 3/4 visits a week? Or just leeching from your bank account, wasted and unused? Are you paying for a phone plan you don’t need?
It is entirely up to you what you think is a good expense versus a bad one. The point of fact finding in step one and deciding what is good value in step two, is so you can direct more money to more useful activities going forward and less money being spent on the things you don’t enjoy or find value in.
3. Add income streams to make more money in 2023
While saving, cutting back on unnecessary expenses and always seeking top value for your money is a good thing, you can only cut back so much. At the end of the day, there is a baseline on how much can actually be saved.
There are still obligations to meet in terms of bills, for example.
Saving isn’t scalable.
Making more money is, with the right approach.
Considering making more money in 2023, there are two ways to go about it. Increasing active income to make more money, or increasing passive income to make more money.
Active income to make more money in 2023, is where you trade time for you money. Think of something like a 9-5. You turn up for work and you are paid for you time. It’s what most people are used to.
Passive income is where you can separate your time from your earning potential. The idea here is that you can build something over a period of time and over time, you are continually rewarded for the work you did up front.
Affiliate marketing, advertising on a blog, ad revenue from a youtube channel or similar… these are all ways to creating a passive stream of income to make more money in 2023. I say passive – but of course, there has to be work done up front to get started and you need to maintain your body of work.
Passive income is often peddled as some sort of easy money printing machine that anyone with no experience can just switch on tomorrow and that’s just not the case.
I wrote an article about this very thing – passive income is a lie – and I also produced a video on the same topic. Setting up a passive income stream with a blog, youtube channel, affiliate marketing or a combination of all of these, certainly take work, but can be very rewarding because they can grow – and the sky is the limit.
Streams of income like this are scalable though, because the work you do for one reader or subscriber is the same work you have to do for 1 million. Of course, it’s not easy, but now might be the time to give more thought to that business idea you have.
2023 could just be the right time to get started on something fresh…. and with all that money you are saving from steps one and two, then hopefully you have a bit of money behind you to get started.
4. Get your money to make money in 2023
Once you get started down the path of cutting waste and being more productive with your money, you might well find it hugely addictive as you begin to make more money in 2023.
Hopefully you are starting to see the benefits of cutting down on waste and clutter. Hopefully you are starting to see the benefits of removing everything from your life that you don’t find value in. I also hope that you begin to see a bit of money trickling in from the passive income streams you are beginning to build in step 3.
At a bare minimum, you should have a few extra pounds in your pocket as a result of sticking with the process up to now.
Now we need to get our money working for us while we do nothing. Money making money in 2023. There are several approaches you might take here.
Continue to invest in new income streams in 2023
Continue to invest in your new income streams in 2023. For example, if you are building a Youtube channel, perhaps some better equipment – camera, lighting, audio, stock footage, perhaps. Perhaps there are processes you can improve on in your creation process with some automation, or outsourcing mundane or time-consuming jobs.
Maybe you find making graphics or thumbnails for instagram for example, is sucking a lot of your time… could you outsource that on Fiverr? Could you pay other people with this extra money you have streamline your own efforts? Something to think about.
Invest to make more money in 2023
Invest your money to make more money in 2023. Investing in assets is potentially an amazing way to have your money make money while you do nothing, except wait. Historically at least, the stock market has been a powerful way to make money, returning something between 5-10% per year since it’s inception. It depends what you perceive “the market” to be, but generally speaking the market has been on an upward trend since the beginning of time.
One of the simplest and easiest ways to invest in the stock market is just to contribute monthly to some sort of index tracker. Over time your investments will grow as you contribute more capital and over a longer period of time you will start to benefit from compounding interest on your investment.
Check out this awesome compound interest calculator from Matt Harris to see what is possible, or this video to see what it’s all about
Of course, stock market gains are never guaranteed. In fact there will be many years when your investments might go into reverse, but over a long period of time, you could reasonably expect to make strong gains and you literally have to invest nothing but money. No effort, no business to run – a buy and hold strategy has proven to be very successful, historically.
Start more passive income streams in 2023
Start more passive income streams to make money in 2023 – with the money you are making from your new ventures, could you set up yet more streams? Think about the niches you are exploring… is there anything else that would be suitable to complement what you are doing? Are there new markets you can enter to try to make more money in 2023?
Just be careful not to spread yourself too thin… it might be wise to concentrate on getting one or two side projects up and going (and performing well) before you try to move your attention to something new.
Bonus tip to make more money in 2023! If you have any credit card debt in 2023, pay it off first before doing anything else. Typically a credit card is charging you 16% on average. There is absolutely nowhere you are going to get that rate on your money in a reliable manner.
Paying down credit card debit is the single best way to make money in 2023 because is the most expensive way you will lose it. Get the credit card cleared… everything else comes after that.
At this time of year, it’s easy to get swept up in great plans for the new year. Dramatic gestures and grand ideas rarely hold, unfortunately. What is important is that you try to improve your situation just a tiny bit every day in order to make more money in 2023.
Accept that you will have days when you will buy something you don’t need. Be ready to fall over and fail when you try to get a new income stream off the ground.
Appreciate the scenario that all the things I have described will take time. However, time is going to pass anyway, so would you might as well try to do it right!
There are going to be days when you don’t want to save your money and you want to buy a treat or something you don’t absolutely have to have. There will be days when you can’t fit something in. That’s ok. That’s real life. But the long game is important here and the fewer of these days you can manage, the better your results will be. Too many of them, and you could be derailed completely in your efforts to make more money in 2023.
As you save more money, and hopefully increase your income in 2023, it’s so vital to stay focussed on your long term goals. Why do you want to save money? Why do you want to make more money? Use these reasons to stay on track and keep making good decisions along the way.
So lets start making some more passive income! Check out this article to see how I’m investing in the stock market.