Show me the $$$: 5 Tips to Re-set your Spending for the New Year

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Weight loss and better physical health tops people's lists for new year's resolutions. But what about financial health? It is a new year and time for a new start if you have had trouble with spending over the holidays. 

Here are Amanda's top 5 tips to get you on your way to better financial health!

Tip #1: Plan for your Annual Bills

I won’t ask for a show of hands, but how many of you have had that oh crud, I forgot I have to renew the Costco Membership when in line with a cart of groceries… or you get your bill to pay your annual AAA membership… or dare I mention that fee we send annually to the DMV?

We might be really good about the regular monthly payments because they come out every month reminding us of their presence (utilities, cell phone, mortgage, HOA fees), but what about those once in a while payments that can make a tight budget get out of whack when they “pop” up? 

We know they are coming, yet we magically often forget to plan for them. Let’s change that with some simple steps. It starts with a list. Write down all of your annual payments and how much they cost. 

Costco $60
Annual Cell Phone: $200
Annual Fitness Subscription: $249
Family Communication App: $144
Car Registration: $300

Once you have your list, add it up and divide by 12 because there are 12 months in a year. If I save $79.42 a month, I’ll cover all FIVE of these bills… instead of having to scramble to find $953 in the same month… because magically they will all come due within a few months of each other (I have two of these due in July, one in October, and 2 in November… which is also the month for property taxes and holiday shopping which can make scrambling for cash that much harder).

Tip#2: Plan for SMALL HOLIDAYS not just the big ones

Very similar to planning your annual bills, the question becomes, are you budgeting for Holidays? We might remember to fold $50-$75 a month aside for Christmas… and have a sinking fund for birthdays for our loved ones…. but what about 4th of July sparklers and visits to the fair? Easter baskets? Halloween costumes for the kiddos, and candy to pass out so your house isn’t egged? Classroom valentines? Teacher appreciation gifts? 

It’s these well intended memory making moments that we forget about. So instead, set a budget for each of these holidays and automatically transfer a set amount to a savings account so when these events take place, you already have the funds to pay for them AND you have thought about how much you can spend on each of the holidays. Here’s some ideas: 

Feb - Valentines: $150 ( $20 kiddo / $100 significant other / Cards & decorations $30)
March - St. Patricks: $15 (Craft supplies to build a leprechaun trap)
April - Easter $30 (Baskets, eggs, candy)
May: Mother’s Day: $50
June: Father’s Day: $50
July: 4th: $30 (Sparklers, decorations, fair $$$)
Halloween: $50 (costume + Candy)
Thanksgiving: $50 (Extra $$ for turkey and fixings)

It’s a lot easier to set aside $35 a month on a regular basis and cover these. 

Tip #3: Wait 2 weeks to buy stuff

I’m not talking about groceries, gas, and necessities, but you have no idea how many times delayed shopping has saved my bottom line. When I want something, I stick it in my Amazon cart and then I don’t check out. 

At a maximum, I let myself hit the check-out button once a month. Often times I’ll pull things out and add them to a saved for later list as I remember the things I NEED to get more than what I WANT to get in that moment. 7/10 times I end up not buying the item. 

There is something about waiting 2 weeks and doing without an item that lets you feel that items value (and not regretting the purchase), or you find a solution that works without incurring any additional funds because you can find that item for free from a “buy nothing group” or a work around solution.

As an example, I love love love love my hand held, battery operated frother. It was worth every penny I spent to have it mix up my fiberwise so it's not grainy when I drink it. I have always just stirred my fiberwise with a fork and choked back the grainy mess… but on vacation I watched my friend use a frother and I was blown away. For 5 glorious days it was pleasant to drink it! I waited two weeks when I got home from my trip trying to go back to my fork and manual stirring, but I happily said “take my money” and never regretted buying it. Same goes for my fitness app. I had it for over 6 months and loved it… but I needed to cut expenses. It wasn’t the same to try and workout with the equipment I had without the direction that app provided. (I like being told what to do when it comes to the gym). So, when my budget loosened up, I happily took advantage of a sale and snagged a whole year at a discount and have been happy ever since.   

On the other hand, I avoided an impulse buy by waiting the 2 weeks and didn’t buy a battery powered salt and pepper grinder because I snapped the Aldi disposable grinder and got frustrated. The battery one would have been too big for my cabinet, and I prefer manual grinders. Instead, I bought another disposable bottle because I like the satisfaction that comes from a manual grind. I placed the one I want on my Christmas list because I know I’m hard to shop for since I don’t really do a ton of “things.”

Tip #4: Eat what’s in your house 

Once a year you need to cycle that pantry, check those cans and take an inventory of the items you actually eat. Might as well save a few dollars as you recoup after the holidays by doing a pantry challenge. Plan some meals around the staples already on your shelves to reduce some grocery spending by picking up the fresh items you need to make meals out of the food you have at home. While you're in that pantry, update the list of things you need to replace so when you see a sale you can stock up at a discount. Don’t forget to check that deep freezer for buried treasure.

Learn from my mistakes and rotate your food every few months, that way you don’t toss out several expired cans of Tuna and Chili because you didn’t rotate that pantry correctly.  It’s Holiday potluck season and no one says no to chili in a crock pot with a brick of melted cream cheese and tortilla chips…. Just saying.

Tip #5: Evaluate where your money is going

You can select one category to audit (clothes, eating out, coffee trips, etc), but keep a rolling list of every time you spend money in this area. It might help you curb your spending to see how those $5 Starbucks drinks cost over the course of a year, or how many shirts you add to your closet. 

I use an excel google sheet and when I make a purchase in a category I want to monitor, I add it to the list. It helps me see how much I’m really spending so I can change my budget based on rising prices. 

To give you an idea, I budget $220 a month for gas… but I’m not spending all of that gas money every month according to my audit: 

Month #1 
-$61.31 Reimbursed by employer for work-related driving.

$68.23 Paid for gas.

$59.64 Paid for gas.

Total: $66.56

Month #2 
$67.88 Paid for gas.
$45.30 Paid for gas.
-$35.30 Reimbursed by employer for work-related driving.

Total: $75.88

Month #3 
$77.62 Paid for gas.
$78.10 Paid for gas.
-$21.88 Reimbursed by employer for work-related driving.

Total: $133.84

So, I have two options. I can reduce gas money expenses and occasionally come short with car washes, toll road fees, etc... or I can transfer this extra cash into a slush fund to cover miscellaneous auto expenses like oil chances, toll road fees, and that $7 DIY car wash. 

Use the tips above and, before you know it, you will be more prepared and spend your money on what you truly need and want!

Thriving not Just Surviving is a personal blog, written and edited by yours truly, and features guest writers and my personal life stories. I am NOT a financial professional... I am not a CPA, nor do I hold any financial certifications. Please seek a professional for any “real” advice when it comes to your own finances and money. The views and opinions expressed on this blog are purely the blog owners and are meant for entertainment purposes.