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Financial Fundamentals

5 Budget Reset Habits for 2024

β€” Alexandra Ardelean

The new year is just four days away, and I want to talk about five budget reset habits for 2024. Whether you're an experienced budgeter or new to budgeting, these habits will help you start the new year on the right financial foot.

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 review your spending from the past year. Identify areas where you overspent or where your budget didn't match your actual expenses. This will help you understand your spending habits and make necessary 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 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Over time, our spending habits and priorities change, so it's important to regularly review our budgets and remove any outdated or unnecessary categories.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 plan sinking funds for larger expenses in the upcoming year. Sinking funds are a great way to save for irregular or infrequent expenses by setting aside a small amount of money each month.

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 example, if you're planning a summer vacation, start setting aside money each month in a vacation sinking fund. This will help you cover the cost of the trip without going into debt or disrupting your regular monthly budget.

Budget Reset Habit #4: Track Transactions Daily with EveryDollar App

The fourth habit is to track your transactions daily using the premium version of the EveryDollar app. Tracking your spending in real-time allows you to stay on top of your budget and make adjustments as needed throughout the month.

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 reevaluate your subscriptions. Over time, we often accumulate various subscriptions for streaming services, gym memberships, magazines, and more. Many times we forget about them, but they continue to charge us every month.

Take some time to review all of your subscriptions and identify any that are no longer being used or are no longer worth the cost. Consider canceling those subscriptions that are not adding value to your life or that have become redundant over time.

By reevaluating your subscriptions regularly, you can free up extra money in your budget and ensure that you're only paying for services that truly benefit you.

Overall Financial Takeaway for Starting 2024

As we prepare to enter 2024 with our financial house in order, ready for whatever comes our way - I want to remind everyone not to let holiday spending derail their financial plans for the entire year.

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!