Make more money in 2023: here are 23 steps to get you started

A strong financial start to the year will grow your wealth faster in 2023. These money experts’ tips and advice can help.

Money will be in more demand than usual this year as interest rates and other household costs continue climbing, and now is the best time act.

Having some precious spare time over the holiday period can give Australians a chance to clean up their finances, spot savings opportunities and plan for a wealthier end to the year.

Beyond Bank’s general manager of customer experience, Nick May, says January is a time people reset many things, clear the decks after December’s spending boom and prepare for the year.

“Finances can be far less stressful when we plan ahead,” he says.

“Much like we manage our health, managing our finances takes some time and effort – but with that time and effort there are rewards, including putting yourself in a better financial position and also avoiding the stress that comes with managing expenses at the last minute.”

Extra cash comes from not only earning more, but also spending less, saving money, and investing so others make money for you, and we’ve asked specialists across several financial disciplines to share their top tips for starting 2023 strongly.

1 FINANCIAL HEALTH CHECK

Know where your finances sit right now by checking your assets, debts and spending. Your bank or financial adviser can help with gathering information, May says.

“Your financial health check should include things like insurance – car, home, health – superannuation, loans, savings accounts and banking generally – make sure you are using your money wisely and getting the best deal you can.”

2 BUDGET YOUR SPENDING

Armed with knowledge of where the money goes, put it into a budget to ensure your income exceeds expenses now and for the rest of 2023. There are many free budgeting tools and apps available, including on the federal government’s moneysmart.gov.au website.

MBA Financial Strategists director Darren James says a budget is “a starting point” for financial success.

3 WRITE DOWN MONEY GOALS

James suggests setting out your goals for the year – including what you want to achieve financially.

“It gives you something to work for,” he says.

“Do you want it to be a repeat of 2022 or do you want to move forward?”

RateCity’s Sally Tindall says it’s showtime for savers. Picture: Tim Hunter

4 THINK ABOUT JUNE 30

The end of the financial year is less than six months away, and there are many strategies across tax and superannuation that can be started now to deliver a financial windfall at tax time.

Making tax deductible purchases, starting spending diaries and logbooks and considering extra contributions to superannuation can all be beneficial.

5 MAXIMISE DEPOSITS

Interest paid on bank deposits is ballooning after years of paltry returns, with some at-call accounts offering introductory rates near 4.5 per cent and ongoing rates near 4 per cent. The best term deposit rates range between 4 and 5 per cent.

Ratecity.com.au research director Sally Tindall warns says “it’s showtime for savers looking to maximise their cash” but warns that some online savings accounts still pay poor interest so it’s wise to shop around.

“People with money tucked away in the bank shouldn’t just assume their cash is benefiting from rising interest rates,” Tindall says.

6 COMPARE AND SAVE

There are many financial products where shopping around can deliver hundreds of dollars a year of savings – or potentially thousands on home loans.

Consider using comparison websites to check you are getting the best deal on your mortgage, personal loans, savings, insurance and super. It’s a good idea to check different sites.

7 AUTOMATE YOUR SAVINGS

Your Financial Wellness CEO Alex Hassall says automatically transferring money from your wage to a savings account – even if it’s a small amount – can make a big difference over time.

“Set up a savings account and set up automatic payments to it on the day you are paid and try not to touch the money for a year,” Hassall says.

8 FOOD FOR THOUGHT

“Cook your dinner, pack your lunch,” Hassall says.

“Making a salad or sandwich at home or taking leftovers is almost the easiest way to save money while you work.”

9 PLAN TO SPOIL YOURSELF

Money is a tool to help you get through life and enjoy rewarding experiences. Plan to set some aside for things you enjoy.

“Budget for the occasional treat,” Hassall says.

“Saving doesn’t mean you can’t buy nice things, but make sure you budget for it.”

Your Financial Wellness CEO Alex Hassall says give yourself occasional treats.

10 EYE ON ENERGY COSTS

Gas and electricity prices are surging, and there are plenty of practical ways to lower your usage and reduce your bills. Check energymadeeasy.gov.au or state government energy comparison websites to see how your current plan stacks up.

Enphase Energy general manager Wilf Johnston says bills can be improved by using less hot water, turning off appliances when not in use, insulating your roof and closing blinds in summer.

11 PRODUCE YOUR OWN POWER

Millions of Australians have switched to solar energy and more are considering it ahead of bill spikes in 2023.

“A good-quality solar system can pay for itself in less than five years, save you tens of thousands of dollars on your power bills over more than two decades, and increase the value of your home,” Enphase’s Johnston says.

Solar system costs have reduced dramatically in a decade and vary from a few thousand dollars to more than $10,000. Johnston says choosing a reputable installer is critical.

12 SUPERCHARGE WEALTH

Superannuation strategies such as salary sacrifice, co-contributions, spouse contributions and catch-up contributions will grow your wealth faster using the power of compound interest, and deliver tax deductions at the same time.

Industry Super Australia says a 30-year-old earning an average wage can enjoy an extra $67,000 at retirement if they salary sacrifice $20 a week into superannuation.

13 CONSOLIDATE YOUR NEST EGG

High superannuation fees erode people’s wealth, and many pay more than they should because they have multiple unnecessary super funds. You can check if you have lost super by contacting the Australian Taxation Office or using myGov, and can also check your balances and funds.

“Check you are getting what is legally owed, that you’re in a fund with a long-term history of good performance, combine multiple accounts and invest extra in super if you can,” says Industry Super Australia chief executive Bernie Dean.

14 START A SIDE HUSTLE

There have never been more opportunities to earn extra income through online apps and platforms, ranging from Uber and delivery driving to pet sitting and freelance jobs.

Outsourcing company Airtasker’s CEO, Tim Fung, says many side hustles are free to set up. “You can literally start your side hustle just by selling your skills, whether that be in accounting and finance, marketing, party planning, or cleaning, and you don’t have to invest anything other than your time,” he says.

15 SHARE YOUR STUFF

Similarly, your unused items and space can earn extra dollars.

Some of the sharing economy platforms available include Camplify for caravans and camper trailers, eBay and Gumtree for second-hand goods, The Volte for designer clothing, Spacer for storage spaces, Parkhound for parking spaces and Car Next Door for your car.

16 LOSE INSURANCE LOYALTY

Car, home and other insurance premiums renew annually and often trap consumers with sharp price rises that go unnoticed.

Insurers often charge new customers less than existing customers because they want new business, so compare your policy with others to potentially save hundreds of dollars.

Beyond Bank’s Nick May says financial stresses are lower when we plan ahead.

17 PRIVATE HEALTH CHECK

Health insurance premiums rose in November for many Australians, while others will be hit with rises in mid-January, and iSelect spokeswoman Sophie Ryan says there are ways to reduce premiums.

“If you think it’s unlikely you’ll be admitted to hospital in the near future you could opt for a higher excess on eligible policies in exchange for lower overall premiums,” Ryan says.

Some people can consider prepaying annual health insurance premiums upfront to lock in current rates and “help you delay any premium increases”, she says. And, of course, shop around.

18 START BUILDING A BUFFER

Equifax consumer general manager James Forbes says having an emergency savings stash covering 3-6 months of expenses is important.

People who don’t have a buffer can “aim to save up at least one month’s worth and build up from there”, Forbes says.

Many people use home loan redraw facilities or offset accounts as their emergency savings buffers, because they can save interest in the process.

19 CHECK YOUR CREDIT SCORE

“A high credit score generally indicates lower risk and can translate into many benefits, such as lower interest rates on mortgages,” Forbes says.

But only 50 per cent of Australians know how to access their credit report, he says. “This knowledge gap could hinder consumers’ ability to demonstrate to lenders they are in control of their finances.”

20 KILL CREDIT CARD INTEREST

Credit card interest rates are near 20 per cent and one of the most expensive forms of debt.

If you cannot pay it off within the interest-free period, consider debt consolidation, balance transfer cards, low-rate cards or cutting up the credit card.

21 INVEST TO EARN

True wealth comes from having assets delivering you a passive income, and there are many ways to access high-growth stockmarkets and property markets.

Micro-investment platforms have boomed in recent years and in some instances require just $5 to set up, while exchange traded funds diversify every dollar you invest across multiple companies, countries and sectors.

22 CALCULATE FUTURE WEALTH

There are free compound interest calculators online that will show you how every dollar invested can grow over several years and decades.

It’s the best incentive for starting to invest now, and it helps to write down future wealth targets so you have something to aim for.

23 STARTING SMALL IS OK

Social investing network eToro Australia’s managing director Robert Francis says people often choose overly ambitious financial goals.

“The trick might be to set multiple smaller, more attainable goals, such as making sure you save some money – it doesn’t matter how much – each month,” he says.

“If you find that too easy, then increase your monthly target and keep raising that bar until you find a level you feel comfortable with.”

Allysha Bower uses The Volte to earn extra income. Picture: Supplied

Clothes sharing delivers $1000 a month

Allysha Bower started sharing her dresses for money as a side hustle on The Volte, a platform for lending and borrowing designer dresses and other clothes, and it has grown into a handy extra income.

“It’s been going so well I’ve now got about 50 dresses on there that I rent out, and they make me over $1000 some months,” she says.

“It also allows me to spend more time with my daughters.”

And Bower’s advice for others thinking about starting a side hustle?

“Go for it,” she says.

“If you’ve got designer dresses, you can only wear one at a time, so list them on platforms that can earn you money and more than cover their cost.”

Originally published as Make more money in 2023: here are 23 steps to get you started