With the new year just around the corner, I'd like to share five budget reset habits for 2024. Whether you're a budgeting pro or a novice, these habits will get your new year off to a financially healthy start.
But first, let me tell you about my favorite board game. It's called TAPL, and it's available at Walmart. This game is perfect for family playtime, and it's a great way to teach kids about money and budgeting in a fun and interactive way.
Now, let's dive into the five budget reset habits for 2024.
Budget Reset Habits for 2024
Whether you're a seasoned budgeter or just starting out, these five habits will help you reset your budget for the new year. Let's get started!
TAPL Board Game Advertisement
Before we dive into the budget reset habits, I want to tell you about my favorite board game called TAPL. This game is perfect for family playtime, and it's a great way to teach kids about money and budgeting in a fun and interactive way. You can find TAPL at Walmart, so be sure to check it out!
Budget Reset Habit #1: Review Past Year's Spending
The first habit is to look back at your spending from the past year. Identify areas where you overspent or where your budget didn't align with your actual expenses. This will help you understand your spending patterns and make adjustments for the upcoming year.
For example, if you consistently overspent on dining out, consider setting a lower budget for restaurants in 2024. Or if you had unexpected medical expenses, think about adding a sinking fund for healthcare costs in your new budget.
By reviewing your past spending, you can identify areas for improvement and make the necessary adjustments to your budget.
Budget Reset Habit #2: Eliminate Unnecessary Budget Categories
The second habit is to eliminate unnecessary budget categories. Over time, our spending habits and priorities change, so it's important to regularly review our budgets and remove any outdated or unnecessary categories.
Take a look at your current budget and identify any categories that are no longer relevant. For example, if you used to have a category for a gym membership that you no longer use, remove that category from your budget.
By eliminating unnecessary categories, you can streamline your budget and ensure that you're focusing on the most important areas of your finances.
Budget Reset Habit #3: Plan Sinking Funds for Large Expenses
The third habit is to establish sinking funds for larger expenses anticipated in the coming year. Sinking funds are an effective strategy to prepare for irregular or infrequent expenses by allocating a modest sum monthly.
Think about any significant expenses you anticipate in 2024, such as vacations, home repairs, or car maintenance. By planning ahead and setting up sinking funds for these expenses, you can avoid financial stress when the time comes to pay for them.
For instance, if you're saving up for a summer holiday, start putting a bit of money each month into a dedicated savings account for this purpose. That way, you can pay for your holiday without resorting to debt or upsetting your usual monthly budget.
Budget Reset Habit #4: Track Transactions Daily with EveryDollar App
A patra obișnuință este să-ți urmărești tranzacțiile zilnic folosind versiunea premium a aplicației EveryDollar. Monitorizarea cheltuielilor în timp real te ajută să îți menții bugetul sub control și să faci ajustări pe parcurs, pe parcursul lunii, dacă este necesar.
With the premium version of the EveryDollar app, you can connect your bank accounts and credit cards to automatically import transactions. This makes it easy to see where your money is going and ensure that you're staying within your budget.
By tracking your transactions daily, you can quickly identify any overspending or discrepancies and make necessary adjustments before it becomes a larger issue.
Budget Reset Habit #5: Reevaluate Subscriptions
The fifth habit is to re-evaluate your subscriptions. Over time, we often accumulate various subscriptions for streaming services, gym memberships, magazines, and so on. Many times, we forget about them, but they continue to charge us every month.
Alocați timp pentru a revizui toate abonamentele dvs. și pentru a identifica pe cele care nu mai sunt utilizate sau nu mai merită costul. Luați în considerare anularea abonamentelor care nu vă aduc valoare sau care au devenit redundante în timp.
Prin reevaluarea periodică a abonamentelor, poți elibera bani suplimentari în bugetul tău și te asiguri că plătești doar pentru servicii care îți sunt cu adevărat de folos.
Overall Financial Takeaway for Starting 2024
As we prepare to enter 2024 financially ready for whatever comes our way - I want to remind everyone not to let holiday spending throw off their entire year financially.
It's easy to get caught up in the holiday spirit and overspend during this time of year - but don't let that derail all of the hard work done throughout 2023.
Remember - give yourself grace!
We all make mistakes - especially when it comes to our finances.
So as we head into 2024 - let's do so with confidence knowing we have control over our finances.
And remember - if one of your New Year's resolutions is getting control over your finances - be sure to check out my video on how I use EveryDollar app.
And share this video with friends who may also be looking for ways to improve their finances in 2024!