Do This to Save Your Finances in 2023💸

TL;DR

Audit subscriptions and automatic payments by listing every recurring charge, then calculate the annual total by multiplying monthly costs by 12.

Briefing Cornell Notes

Briefing

Personal finance in 2023 hinges on tightening the basics—especially cash flow leaks, emergency preparedness, and predictable expenses—then reinforcing the habit with automation and debt payoff. The most immediate lever is a hard look at recurring spending: subscriptions and automatic payments. Streaming services, app memberships, and subscription boxes can quietly drain budgets. Adding up monthly costs and multiplying by 12 often reveals how much money goes to maintaining a “catalog” of entertainment rather than delivering real value. The same audit logic applies to any recurring charge, not just entertainment.

From there, the plan shifts to building buffers and smoothing out financial shocks. A side hustle or passive income—even around $100 per month—can create breathing room for saving and managing day-to-month obligations. But the foundation is an emergency fund sized to cover roughly three to six months of expenses, tailored to income stability and personal risk. That reserve is meant for job loss, repairs, or unexpected maintenance, reducing the stress of having no place to pull money from when life interrupts.

Another practical move is pre-funding predictable “surprise” bills. Many costs arrive annually or irregularly—car maintenance, property tax, car repairs, and tax-related expenses. Instead of scrambling when the bill lands, the approach is to total those expected yearly costs, divide by 12, and set aside the monthly amount so the money is already there.

Food is treated as a major battleground because small daily spending habits compound into large monthly totals. The guidance includes buying groceries in bulk when space allows and using online grocery shopping to control spending—reviewing cart totals, removing items if over budget, and comparing prices per pound or kilo to find cheaper options. It also recommends limiting how often people eat out: dining out weekly can be replaced with a lower frequency (for example, two times per month) while preserving the enjoyment. Finally, it targets “tiny” budget drains like snacks, daily coffee, and desserts—either cutting them, reducing frequency, or buying them in bulk at the supermarket instead of paying premium prices from vending machines or on-the-go purchases.

The remaining steps focus on timing and behavior. Postponing upcoming expenses—like a car or furniture purchase—can prevent unnecessary strain when financial comfort is still being built. Automating savings through home banking is framed as a way to remove decision fatigue: money moves out of the checking account as soon as it arrives, building emergency funds or goal accounts without constant mental effort. Investing is presented as conditional on personal circumstances, country, income, and risk tolerance, with an emphasis on learning the basics and understanding product risk before committing.

The list also extends beyond spending to social and psychological choices. Holiday gifting should shift from clutter to usefulness by asking for what someone truly needs and offering to contribute toward purchasing it. Debt payoff is positioned as a mindset upgrade too: starting with the smallest debt can build momentum, especially when interest rates are considered. Underlying all of it is the belief that financial outcomes improve when money habits and beliefs change—reinforced by the book “The Psychology of Money.” Audible is promoted as a way to listen to that title and other audiobooks, with a free 30-day trial for new members.

Cornell Notes

The core message for 2023 is that better financial health comes from reducing recurring leaks, building buffers, and making saving automatic. Start by auditing subscriptions and automatic payments, since monthly charges multiplied across a year often reveal unnecessary spending. Build an emergency fund (about three to six months of expenses) and pre-save for predictable annual costs by dividing yearly expenses into monthly set-asides. Control food spending by buying groceries in bulk, using online carts to stay within budget, limiting restaurant outings, and cutting or replacing small daily “snack” purchases. Finally, automate savings, postpone nonessential big purchases, learn about investing based on risk tolerance, and pay down debt—often beginning with the smallest balance for motivation.

Why does reviewing subscriptions and automatic payments matter so much for 2023 budgeting?

Recurring charges are easy to ignore because they feel small in isolation. The transcript recommends listing ongoing subscriptions and automatic payments, then asking whether each one delivers real value (for example, whether multiple streaming services are necessary). The key calculation is to add monthly costs and multiply by 12 to see the true annual drain. This same approach applies beyond streaming—phone/app subscriptions and subscription boxes can also accumulate into significant yearly spending.

What’s the practical difference between an emergency fund and “pre-saving” for predictable bills?

An emergency fund is for unexpected disruptions—job loss, urgent repairs, or maintenance—typically targeted at three to six months of expenses. Pre-saving for predictable bills addresses costs that are known in advance but arrive irregularly, such as yearly car maintenance, property tax, car repairs, and tax-related expenses. The method is to total those expected yearly costs, divide by 12, and set aside that monthly amount so the money is ready when the bill arrives.

How can someone reduce food spending without eliminating enjoyment entirely?

The transcript suggests three levers: (1) buy groceries in bulk when possible and consider online grocery shopping to control spending by reviewing the cart and removing items if over budget; online shopping also enables price comparisons per pound or kilo. (2) Limit restaurant outings by focusing on frequency—if dining out brings happiness, reduce it from weekly to something like two times per month. (3) Target small daily purchases (snacks, daily coffee, desserts) that compound over the month; either skip them, reduce frequency, or buy equivalent items in bulk at the supermarket rather than paying vending-machine or on-the-go markups.

What role does automation play in saving money?

Automation reduces decision-making. The guidance is to use a home banking app to set up automatic transfers so savings “disappear” from the checking account when money arrives. That removes the need to remember to save and helps build emergency funds or goal accounts consistently, because the money is moved out before it can be spent.

Why might postponing an expense be a better move than buying it immediately?

The transcript frames postponement as a way to avoid unnecessary financial strain when comfort is still being built. Before committing to a purchase like a car or furniture, it recommends asking whether it’s absolutely necessary next year or whether it can be delayed one or two years. Some expenses are avoidable, and delaying them can strengthen the financial position before the cost hits.

How does the transcript connect debt payoff to motivation and psychology?

Debt payoff is presented not only as math but as momentum. Starting with the smallest debt first can create a psychological win—progress that builds confidence and makes it easier to tackle larger balances later. Interest rates still matter, but the motivational approach is to begin with the “smallest bets” to generate traction.

Review Questions

What recurring expenses should be audited first, and how should the annual cost be calculated?
How would you design a monthly set-aside plan for yearly expenses like property tax and car repairs?
Which food-spending changes target both big categories (groceries, dining out) and small daily drains (snacks, coffee)?

Key Points

1
Audit subscriptions and automatic payments by listing every recurring charge, then calculate the annual total by multiplying monthly costs by 12.
2
Build an emergency fund sized to roughly three to six months of expenses based on income stability and personal risk.
3
Pre-save for predictable annual or irregular bills by totaling expected yearly costs and dividing by 12 to set aside monthly.
4
Reduce food spending through bulk grocery buying, online cart control, fewer restaurant outings, and cutting or replacing small daily purchases.
5
Postpone nonessential big-ticket expenses by one to two years when doing so improves financial comfort.
6
Automate savings transfers so money moves out of checking as soon as it arrives, reducing temptation and decision fatigue.
7
Pay down debt with a psychology-first approach—often starting with the smallest balance for momentum—while still considering interest rates.

Highlights

Recurring subscriptions can be a hidden budget leak; multiplying monthly charges by 12 often reveals how much goes to maintaining a “catalog” rather than value.

Emergency funds (three to six months of expenses) and pre-saving for predictable bills both reduce stress, but they serve different purposes.

Food costs often swing on small daily items—snacks, coffee, and desserts—so changing frequency or buying equivalents in bulk can matter.

Online grocery shopping is framed as a budgeting tool because carts can be reviewed and adjusted before checkout.

Debt payoff can be treated as motivation: starting with the smallest debt can build momentum to tackle larger balances later.

Topics

Subscription Audit
Emergency Fund
Food Budgeting
Automated Savings
Debt Payoff