4 Money Challenges To Start The New Year Off Right
The beginning of a new year is a perfect time to reassess where you are, and set new goals and priorities. If you want to save money in the new year (or whenever you’re reading this!), it’s about more than just saving money. It’s about changing and upgrading your money story.
Now, what does that mean, and how do you do it? That’s what I’m going to share with you here!
If you’re ready to not only save money in the new year, but shift the way you think about and relate to money, I’ve got 4 simple but POWERFUL changes to help you make that happen.
I’ve used these challenges myself and used them with my clients, and the results have been amazing! So let’s jump right in to my top 4 money challenges to get your New Year started off right.
#1. Go On A Spending Freeze (It’s About More Than Saving Money)
This can be for one week, one month, one year, or however long you choose. Now, at first a spending freeze might not sound like fun, but I personally enjoy this exercise. To start with, remember that this is not about scarcity mode. It also isn’t just about saving money (although that is a big benefit). A spending freeze is actually fantastic way for you to see what emotions drive the purchases you make. Here’s what I mean by that.
Once when I went on a 30 day spending freeze, I realized an interesting pattern. I noticed that ever time I stepped into a retail store, I felt obligated to buy something out of guilt, even if I didn’t really love anything in the store. I had no idea that guilt was a driver for some of purchases until I removed the spending action altogether. So that was a truly eye-opening moment!
During this spending freeze, I also ate what I had in my pantry (rather than eating out), pre-paid my bills, and reflected on the emotional drivers behind my spending habits. I learned so much from that spending freeze that I’m feeling another one would be great for this year, too (and maybe even longer this time).
#2. Set Aside $20 a Month For Investments
When I started investing, I started with just $20 a month. It was as much as I could afford at the time, but it was exactly what I needed to start flexing my investment muscle. This helped me get into a routine and just start, and that made all the difference! So if you are just getting started with Investments like day trading with Robinhood, start where ever you are to get build your investment muscles.
Five years later I’m now investing around 2K/month in various different investment avenues. But starting with just $20 a month was the step that changed the trajectory of my life. Without this step I might not have ever gotten started or stayed consistent.
#3. Save Money By Paying Your Subscriptions Annually (Instead Of Monthly)
One of the ways I saved my first 10K without really trying was by switching my subscriptions to annual billing. If cash flow is tight and If you are getting a tax refund this year, look into what it would take to pay some subscriptions annually instead of monthly. Not only do most places offer discounts for paying up front for the year, but then you also free up that monthly amount going out. So it’s a super-simple and effective way to save money.
Pro Tip: If you’re not sur what do to with the extra cash flow this switch generates, or don’t have an immediate need for it, keep the same recurring amount and set up an auto-transfer into your savings account.
#4. Make Your Money Work For You
We all can feel the affects of the economy right now. One of the ways I can tell the economy is down is by the higher savings interest offerings. So now is a good time to look at your savings, and ask yourself if you’re getting an interest rate that works for you.
I have most of my investments and one savings account in Betterment for the last 8 years (previously known as Wealth Simple). I love Betterment because it offers 4.75% interest on their cash reserve savings accounts. There is no minimum to open an account, no fees, and is insured above and beyond the 250K you’d get at banks.
So if you already have a savings account, check how much interest it is earning you, and make adjustments accordingly. AND if you aren’t saving already, commit to an amount-any amount-and set up auto-contributions. Even if it’s $20/week (or less!).
So there you have it! Try one or all of these 4 money challenges this year, and watch what happens. Remember, small and consistent steps give big results. These challenges will not only help you save money in the new year, but shift your money story in a big way.
Try them out and leave me a comment to let me know how they went for you!
Until next time,
Love, Light & MONEY, Honey..
Kaylee