Cheers To Smart Money Moveš

New Year's resolutions aren't just for smashing your #BodyGoals - they're also a chance to give your finances a complete makeover so you aren't just making ends meet, but thriving. Here's how to be financially fit in 2023 and beyond...

- KIERAN LEGG

Ask anyone who mapped out their finances for 2020 and few - except the soothsayers would've accounted for a global pandemic. But this type of disaster is an important lesson when it comes to budgeting: you can't predict the future, but you can at least build the biggest possible buffer between you and going bust.

STEP 1: Start Budgeting

"Budgeting is the cornerstone of any financial plan," says Simone Sharman, the national head of business development at Truffle Asset Management. "To save more, you either need to spend less or earn more. The latter isn't usually an option."

The first step is figuring out where you are financially. And make sure you don't pull any punches. Open up all your statements and tap them into a single spreadsheet (stick with us!). It's laborious, but this overview will give you a clear idea of where you're sitting and those hours spent craning over a laptop will pay dividends down the line.

"If you don't know where your money is going, it's nearly impossible to see where you can cut your expenses," adds Sharman. "It can feel like your money just magically disappears unless you keep a close eye on it."

Now, Sharman recommends splitting your expenses into two columns: necessary and discretionary. In other words, what are the non-negotiables - rent, car repayments, groceries and what costs are non-essential - UberEats, that ninth pair of yoga pants or the subscription service you haven't used since 2017. Column "B" is where you can start cutting and it's "amazing" how many costs you can nix from your monthly load when you've got a bird's eye view of your financial situation, says Sharman.