MAKE YOUR CASH FLOW

YOUR NEW YEAR'S RESOLUTIONS AREN'T JUST FOR THE WEIGHTS AREA-YOUR FINANCIAL PLAN NEEDS A REVAMP, TOO. WHILE YOU CAN'T PREDICT DISASTER, YOU CAN MAKE SURE THAT YOU'RE MAKING EVERY RANDELA SWEAT. HERE'S OUR NONSENSE GUIDE TO THRIVING IN 2023.

- KIERAN LEGG

WHILE SOOTHSAYERS MAY have predicted the pandemic, the average guy wasn't so lucky. Thankfully, there are lessons in the aftermath of disaster, namely that when it comes to budgeting, you need to build a serious buffer between you and going bust. Before embarking on the steps in the next couple pages, let's address the elephant in the room: there are no get-rich-quick schemes, only solid money habits that will keep you thriving. Now that that's out of the way, let's get down to business.

STEP 1

CREATE A BUDGET 

"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 tter '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-negotiablesrent, car repayments, groceries-and what costs are non-essential-UberEats, every DLC for Call of Duty or the subscription service you haven't used since before lockdown. Column "B" is where you can start cutting, and it's "amazing" how many costs you can scrap from your monthly load when you've got a bird's eye view of your financial situation, says Sharman.