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As we embark on a new year, it’s an ideal time to reassess your financial strategies. Ramsey Show host Rachel Cruze highlights five key budget reset habits that will help guide you toward financial success in 2024. Whether you’re a seasoned budgeter or just starting to take control of your finances, these practical tips are small steps that can lead to significant improvements in the long run.
1. Review and Flag Overspending
During a recent episode of The Rachel Cruze Show, Cruze says the first step is to look back at the past year and identify areas of overspending. This could involve examining bank statements or using budgeting apps like EveryDollar. By pinpointing categories where you’ve overspent, such as food, gas, or online shopping, you can set clear boundaries and gain more control over these areas in 2024.
2. Eliminate Unnecessary Budget Categories
Cruze says a critical aspect of budgeting is not just creating categories but eliminating them when they are no longer necessary. Over time, certain budget lines, such as subscriptions, may become redundant or too high. Regularly reviewing and adjusting these categories can free up financial resources and streamline your budget.
3. Plan Your Sinking Funds
A sinking fund is a strategic way to save for larger, necessary expenses. Cruze advises planning for upcoming large purchases or anticipated expenses like car replacements or home repairs. By setting aside money in these funds incrementally, you can effortlessly cover these costs when they arise, avoiding financial strain.
4. Daily Transaction Tracking
A powerful habit for maintaining budget control is to track transactions daily. Using budgeting tools like EveryDollar, which links to your bank account, can simplify this process. Regular monitoring ensures you are always aware of your spending and can adjust your budget in real-time to meet your financial goals.
5. Re-evaluate Your Subscriptions
Subscriptions can add up over time, and it’s essential to regularly assess whether they are still necessary. Cruze encourages reviewing all subscriptions, from streaming services to gym memberships, and eliminating those you no longer use. This simple act can lead to immediate financial benefits.
Overall Takeaway: Maintain Financial Balance
Cruze emphasizes the importance of not letting holiday spending disrupt your entire financial year. It’s natural to occasionally overspend, but it’s important to approach the new year with focus and determination. Regardless of how the previous year ended, starting 2024 on the right foot is vital. Find a budgeting tool that will help you create and maintain a budget that works for you and your family.
The Bottom Line
Cruze’s five budget reset habits offer a roadmap to financial success in 2024. By reflecting on past spending, eliminating unnecessary expenses, planning for future costs, diligently tracking expenditures, and reassessing ongoing commitments, you can build a strong financial foundation for the year ahead. Remember, the key to budgeting success is consistency and flexibility, ensuring your financial plan evolves with your changing needs and goals.
Editor’s note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates’ editorial team.
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