If you’re like many of us, you might’ve kicked off the year with a New Year’s resolution to save more money. Naturally, that sets the stage for a frugal January. But what happens for the rest of the year?
Like most resolutions, you might shift back into your old spending habits and put off getting your finances together until next year. If you jumped on the trend of committing to a frugal January, this guide can help you turn that one-month commitment into a year-round money reset.
Take a Look Back at Your Frugal Month
Start by taking a quick look back at your spending for your first frugal month. A quick tally of your expenses should give you an idea of how frugal you actually were during your “frugal month.”
Keep an eye out for any surprises. If you spent more than you wanted to in a particular area, you might decide to pull it back even further for the following few months. Also, don’t forget to give yourself a pat on the back for the spending categories you were able to keep in check.
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Cut Back on Things You Don’t Care About
In most of our budgets, there’s space for things that we care about and also some things we don’t care about. Of course, this is highly personal. But if you can honestly cut back on spending that doesn’t add value to your life, that’s a great way to keep your frugal momentum going.
For example, it’s easy to accidentally overpay on your car insurance. Taking a few minutes to comparison shop could help you trim this cost. Or if you find that you’re paying lots of interest on purchases you made last year currently collecting dust in your closet, consider not spending any more money in that category anytime soon.
Keep Room in Your Budget for Priorities
It might seem counterintuitive, but if you want to commit to a frugal year, it’s critical to keep some space in your budget for things that make you smile. The idea of buckling down and not spending a dime sounds great to some in theory. In practice, it’s hard to stick to your financial goals if you’re missing out on the things that bring you joy.
Hold space in your budget for whatever it is that you value. For example, you might keep buying your favorite coffee on Fridays.
Automate Your Savings Goals
It’s often easier to stick to your savings goals when you automate them. This means the money you plan to save goes directly into your savings account with each paycheck.
When the money you plan to save is swept directly into your high-yield savings account, it’s easier to avoid overspending from your checking account.
Give Yourself Grace: It’s Not All or Nothing
As the year goes on, it’s natural to have some frugality slip-ups. That’s OK! Don’t beat yourself up over the accidental misstep here and there.
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This article originally appeared on GOBankingRates.com: How To Turn One Frugal Month Into a Year-Round Money Reset
