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It’s helpful to review your year before moving into a new one in order to save better. Much like Spotify and Duolingo and Goodreads, you can make your own “2024 wrapped” review of your spending and savings. I did this and learned that I spent the least in January and the most in November. November, I contribute to Christmas and birthday expenses. In January, I most likely kept my spending so low because I was focused on paying off holiday debts and not adding anything to that. Whatever months were your high and low, knowing where your spending is the greatest and the least during a year makes it easier to gain insight to avoid the overspending next time around and learn what you did right in that best month. With that said, here are resolutions to help make 2025 better:
Use the insight just discussed to take away a new spending habit to try to incorporate every month of the year.
I think my greatest practice in my low-spend month, January, was requisitioning everything before buying. That made me spend a lot less and only buy what gave me the most bang for my buck or the most necessity.
Challenge yourself to lower your budget
In 2024, my average monthly spending in the combined categories of groceries, miscellaneous expenses like dry cleaner runs and doctor copays, and fun money like movie theater tickets averaged $1700. In the months I spent less than that, it felt like I had found money. In the months I spent more, I felt like I lost. This year, I’ll challenge myself to lower that average to $1600. The more months I can stay under that amount, the more likely I am to succeed at this. Try it, even by just that small amount. You’ll thank yourself by the end of 2025.
Increase your savings
With that lowered budget, every little bit of extra can go straight into savings. I’ve already started this habit in 2024, where my unspent budget in addition to ibotta cash back, upside cash back, and Rakuten payouts all go into a high interest savings account I opened with PayPal. You won’t feel richer immediately, but by the end of the year, you’ll have accumulated something that will accumulate more and more for you over time. And by having that motivation to increase the balance on the savings, it makes the temptation to spend lessen, making it easier to stick to your newly challenging low budget
Plan ahead for all shopping
Impulse buying can destroy a budget. Most people already know that. But last minute shopping can add costs even when the purchase was planned. When there’s limited time, you leave yourself no chance for comparison shopping or waiting for a sale. You are limited to items that can arrive quickly in cases of online shopping. You may even (gasp) have to pay for shipping. I also love the added benefit that when I shop well in advance, sometimes a better alternative comes along than my original plan and I save even more money because I realize I didn’t need the full purchase I aimed for initially. Planning ahead costs nothing and always saves in the long run. I planned ahead most of the time in 2024, but this year I plan to go hard-core with it.
Find new savings avenues
I have been using techniques for comparison shopping (more details in this post), ibotta cashback, upside cashback, rakuten cashback, digital coupons at my favorite retailers, paper coupons, sales, and holiday timing to find the best deals. This year, I want to discover another element of savings to add.
Allocate for large expenses
Somewhat related to planning ahead, I plan to sort through my year to determine when my large expenses will come about. This way, sticking to my budget will be easier because I can plan ahead for the large purchases that recur throughout the year, such as my Amazon Prime renewal every March. It is not exactly a savings method, but I believe this strategy will help to cut other spending during months where large expenses are expected to occur.
Start a new membership or subscription for savings on regularly used items or services
In 2024, I tried Classpass for a free trial, but did not have the time to find a class to try. This year, one of my resolutions is to start taking classes. In order to do that without adding much to my budget, I am considering this monthly service that starts at $5/mth in order to be able to use monthly credits toward classes. Subscriptions are on the rise all over the place, including savings-focused benefits like CVS’ Extracare plus for $5/mth, giving subscribers $10 credits monthly and regular discounts on health products. Always do your math when considering a subscription, because if not used enough, these can backfire and be a drain on the budget more than a benefit.
Find a new side hustle
There are so many ways to bring in extra cash, so why not use one to bring in extra cash? Any skill you have can be utilized. Freelancing, entrepreneurship, translation assistance, tutoring, the list goes on and on. And whatever you bring in can counterbalance any overspending. This is exactly how I plan to use it.
If you have ideas you’d like to share, plans for the new year to help us save, please share them in the comments! I hope these ideas help improve your new year. Happy New Year!
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