Many Americans are struggling to stick to a budget, with one of every three people routinely spending more money than they earn, according to a survey by Wells Fargo. Making ends meet can be tricky in today’s economy — but fortunately, the right strategy can really help.
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In a new YouTube video, personal finance guru Kate Kaden lays out her tactics for planning ahead and “frontloading your finances” in the coming year, so you can cut down on your spending, pay down your debt and have your best financial year to date.
Kaden suggests that you start planning for the start of the year well ahead of time. Ideally, you should put together a financial game plan in the fourth quarter of the preceding year to set yourself up for success and start the new year calm, prepared and inspired.
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This tip is likely going to be a challenge: After all, who doesn’t love giving gifts? Many people love to shower presents on their family and friends. Going all-out in the holiday season is festive, fun and exciting.
That is, it’s fun until you look at your credit card statement. All too often, Kaden said, people “dig [themselves] into a hole” and get into debt by overspending on holiday gifts. Kaden added, “Don’t dig yourself into a hole, because you are the only person that is going to have to dig your way back out.”
Instead of overspending on presents, look for lower-cost ways to show your love. Baking cookies together, decorating gingerbread houses or taking a stroll through a holiday market are all great activities for enjoying the season together. Homemade gifts are also a wonderful way to express your feelings, and they’re often more cherished than store-bought presents.
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More and more people are embracing “no-spend January” as a great way to kick off a year of fiscal responsibility. After the hectic holidays, no-spend January can be a great way to re-center yourself, get back to sensible financial habits, and set aside some extra cash for the rest of the year.
Just a quick heads-up that “no spend” means no spending on non-essential items. Of course, you’ll still need to buy groceries and pay the bills. But you won’t dash out and buy new clothes, go out to restaurants or buy anything that you don’t actually need.
