How are your finances after the holidays? If you celebrated by swiping plastic and clicking “checkout” all December long, your budget might need a fresh start in the new year.
Pressing reset on your budget isn’t always easy, but hard work and determination make it possible. Try these tips to simplify your goal and cut costs in 2022.
Focus on Rebuilding Your Savings
Did you spend savings to leave extra presents under the tree? Now’s the time to pay back every dollar you used.
These savings act as a cushion in case disaster strikes, giving you the means to pay out of pocket for the unexpected. If you need to see a doctor unexpectedly or get an emergency plumber to fix a burst pipe, you won’t have to worry about how you’ll pay for these surprise costs.
What happens if an emergency happens before you can restore your savings? There are installment loans available online that can act as a stopgap. If approved, you can fall back on an online installment loan as your backup cushion.
To find out how installment loans work, you can check out MoneyKey to learn more about this emergency option. Emergency is the operative word — in general, you should only ever borrow when you have no other viable option.
Take Your Credit Cards out of Your Wallet
The plastic in your wallet does a lot of heavy lifting during the holidays, but its busy season is over. Your credit cards deserve a break.
By taking them out of your wallet, you’re less likely to pull them out when you’re at the till.
This can trick you into spending less. You only have the cash in your wallet to spend without credit backing you up.
Delete Saved Spending Accounts
Of course, most of us do the large majority of our spending online nowadays. You don’t even need to key in your account number to purchase something if you’ve allowed your Internet browser to remember login details for your credit cards or PayPal account.
This makes it incredibly easy to buy something you don’t need before really thinking about it. One click, and you’ll get your latte frother wand in the mail three days later.
By deleting this saved info, you’ve slowed down the process, giving you time to consider whether you really need that Soda Stream. As a bonus, this trick may also protect your data.
Track and Cut Spending
During the holidays, big gifts are usually why your budget is hurting in the new year. Things like an Apple TV or Fitbit are expensive upfront items.
But your budget could still be in the red, even after you stop buying these exceptional gifts. It’s easy to overlook how smaller, everyday expenses add up.
A few nights of takeout, a new comic book subscription service, and signing up for HBO Max (even though you already have Netflix, Hulu, and Prime) may not topple your budget on their own. But together, they can be as expensive as that costly Fitbit.
Sit down and track your monthly expenses to catch the worst small expenses wasting your money. If you manage to eliminate them, you stand to save a lot.
Break the Holiday Spending Habit
The new year represents new beginnings, so don’t let last year’s spending habits carry over into 2022. Follow these tips to flip your spending on its head.