The new year is just around the corner, and you’ve likely found yourself feeling strapped for cash after the holiday season. Worry not – experts claim that it’s achievable to make a change and adopt a more budget-friendly lifestyle with the right techniques in 2025.
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Making a few strategic adjustments at the start of the year can result in substantial cost savings throughout the year.
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You don’t have to put in a lot of effort to start earning passive income.
Audit Your Expenses
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She recommended reviewing recurring bills, discretionary spending, and where their money was being allocated towards necessary expenses versus personal indulgences.
I’ve found that many individuals are frequently astonished by how quickly expenses associated with everyday items, such as eating at restaurants or subscribing to entertainment services, can accumulate.
Jimenez also pointed this out. One key adjustment she suggested making is to review your subscriptions and recurring payments.
“Consider unsubscribing from services you typically don’t utilize, or consider downgrading your plans to minimize monthly expenses.”
When it comes to grocery shopping, being frugal can really make a big difference. By carefully planning out your meals, making a shopping list, and utilizing store loyalty programs or mobile apps such as Ibotta, you can avoid overspending.
Creating a detailed budget is a must, said Jimenez. “You should develop a budget that covers both fixed and variable expenses.” She also suggested that using tools such as Mint or YNAB can make this process smooth and help you keep track of where your money is going.
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Set Frugal Goals
After spotting areas where you’re overspending, set specific, quantifiable objectives for reducing your expenses.
“For instance, consider cooking dinner at home three additional nights per week or delay buying non-essential items for 24 hours to avoid impulse purchases,” she advised.
“Setting these habits in January will provide a solid groundwork for making sound financial choices all year round.”
Plan Ahead to Save on Everyday Items and Be Prepared
This is a key way I always advise people, especially early in the year, is to make a plan for cutting costs on necessities.
After the holidays, take advantage of sales on essential household goods, bargain for lower rates with service providers like insurance and utility companies, and think about switching to store-brand products for groceries and everyday essentials.
Preparing ahead of time is also crucial for being frugal, whether it’s planning out your meals for the week or creating a savings fund for significant expenses such as trips or holiday presents.
By taking a proactive approach, clients have been able to save a substantial amount of money, specifically avoiding costly last-minute expenses or high-interest debt.
The key, she said, is to be thoughtful with your finances, making sure they match up with your long-term goals and values.
Jimenez stresses the importance of setting clear savings goals at the start of the year, whether it’s for an emergency fund, a significant purchase, or investments.
She also suggested setting up automatic transfers to savings accounts to simplify the process.
“By making these habits a part of your daily routine, you’ll be well-prepared for a financially responsible and productive year.”
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