10 Tips to Tune Up Your Cash Flow in 2023

Managing your finances can feel like a never-ending 6th grade band concert. (Start this video at 2:24. It’s worth it).

You need to find the right balance between increasing your income and decreasing your expenses, just like those kids have to learn to stay in tune, read the music, AND look at the director all at once. Yikes!

If you kicked off 2023 with a “save more, spend less” resolution but have fallen off track, don’t worry. Here are 10 tips to help you tune up your cash flow in 2023 while maintaining balance (and your sanity!).

1. Track Your Spending For A Month.

Before you know where to make changes, you need to know what’s actually coming in and what’s going out of your account each month. Choose a tracking method like paper and pencil, a spreadsheet, or a tech tool. My favorites are Mint and Rocket Money.

2. Set Spending Goals.

Now that you know what comes in, what goes out, and what you want to change, make a plan for how to spend your money moving forward. You can use the 50/30/20 spending plan or make your own. Is there a specific category where you notice you overspend? (like my Starbucks habit)… Try to create your own spending rule like “I will only buy coffee out twice per week” and stick with it.

3. Calculate the Cost Per Use Before Buying.

Ask yourself, “How many times will I use this?” Divide the price of the item by how many times you’ll use it to determine if it’s really worth the money.

Last year, I wanted new running shoes and I also wanted a specific, colorful pair of shoes to go with my dress for my friend’s wedding. The running shoes were $140, and I would use them at least twice a week for 6 months (48 times). $140 / 48 = $2.91 per use. The shoes for my dress were $80, but I would only use them once.

I chose the running shoes based on my cost per use, and I wore the plain (but still stylish!) shoes I already had to my friend’s wedding.

4. Unsubscribe From Places That Try To Sell You Stuff.

This was really hard for me, but once I did it, it was a GAME CHANGER for my wallet. I love emails from REI and Old Navy about end of season deals, and I tell myself I’ll only buy something if it’s on sale. But guess what? I usually don’t NEED anything that they’re selling, and removing that temptation by unsubscribing to those emails has made my bank account a lot healthier.

5. Negotiate Your Bills.

It never hurts to ask, and a lot of companies will waive fees, lower interest rates, and even give you introductory rates again if you threaten to cancel your service. Here are specific negotiation scripts you can use when calling your credit card company, bank, cell phone company, cable provider, and other subscription services to try to lower your monthly bills. I used this on my cable provider and got my bill cut IN HALF because they gave me a “loyalty” discount after I told them I was going to leave.

6. Change Due Dates.

Speaking of bills…sometimes money stress happens when too many bills come out at one time. If there are certain times of the month where you feel extra strapped for cash, take a look at your pay days vs. bill due dates using this worksheet. Next, call up your bill providers and change your due dates if it will make your life easier.

7. Make it Fixed.

Another bill hack that can help you manage your cash better is taking advantage of Budget Billing programs through your utility providers. These programs estimate your monthly usage and let you pay a set amount throughout the whole year, instead of getting bills that fluctuate from month to month. I set this up with my gas company and I was so relieved when I started paying $72 a month throughout the year instead of getting that $350 gas bill for 4 months each winter.

8. Create Automated Spending Alerts.

Credit card companies, banks, and most budgeting tools allow you to set up text or email alerts anytime you buy something over a certain dollar amount. I noticed that it’s easier for me to overspend when I’m just swiping my card, so I set up a spending alert for anytime I spend over $50. It has been QUITE eye opening. You can set up these alerts online via your credit card company, bank, or budgeting tool.

9. Use Qube To Reign It In.

If there’s one category of spending that you really have a hard time controlling, use a digital cash envelope system like Qube. It comes with a debit card and allows you to break up your money into specific spending categories, or “qubes.” When you spend, money comes out of a specific qube. Once the qube balance hits zero, that’s it: no more spending that month. I did this with my fun money fund and I’m much more intentional about using the money wisely and not exceeding my $500 monthly limit. If you don’t like digital systems, you can do the same thing with a cash envelope system.

10. Set Up Automatic Transfers.

Telling your money what to do before you even get your hands on it is the best way to stick to your budget and make sure you’re not spending more than you make. Set up a separate direct deposit from your employer to your savings account, or set up an automatic transfer from your checking account to your savings account each month. Automatically separating your savings from the rest of your money is an incredible way to keep your cash flow in check and make sure you meet your financial goals.

Ready?

It’s not too late to get back on track this year. After implementing these 10 tips, managing your money will feel less like a never-ending 6th grade band concert and more like Freddie Mercury singing We Are The Champions (of our money!).