STOP WASTING AND SAVE MORE: 5 HABITS TO DITCH AND 3 TO ADOPT IN 2024

It’s never too late to drop bad habits and start forming helpful ones. And that’s especially true when it comes to putting the brakes on unnecessary spending and funneling your extra cash toward your savings goals.

Find Out: 3 Things You Must Do When Your Savings Reach $50,000

To get a plan of action together, GOBankingRates interviewed Allison Kade, money coach at Fabric by Gerber Life. Here are five habits to ditch and three to adopt in 2024.

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5 Habits To Ditch in 2024

If you’re serious about turning things around financially, here’s how to start making headway.

See: 8 Things Frugal People Never Do at the Start of a New Year

Scarcity Mindset

Kade said that while some experts may tell you to stop hitting the coffee shop or drop your favorite streaming service to save money, she strongly believes that everything is relative, and it’s perfectly fine to spend on things that you enjoy, as long as you keep it to what you can afford.

“The best way to put your finger on what you can afford is to have — and regularly update — your budget,” said Kade. “You may think you have the math right each month — and that you have enough in the bank to treat yourself to a fancy dinner or a quick manicure — but if you’re not taking the time to sit down and properly budget, it could come back to bite you. There’s nothing wrong with spending money, as long as you’re making more than you’re spending.”

Ignoring Unused Memberships

Kade said that unused memberships can really take a toll on your bank account, especially if you’re not taking advantage of them.

“Do you go to the gym multiple times a week?” she asked. “Maybe that’s not the membership to ditch. But it is worth doing an audit of the services being auto-billed every month, to make sure that you’re the one in charge rather than the companies that have you on autopay.”

As an example, Kade shared that she used to subscribe to “The New Yorker” and said that as much as she still wants to be someone who reads the magazine, the subscription was causing her more stress than pleasure as the magazines continuously stacked up on her table unfinished.

Letting Debt Pile Up

“According to the Federal Reserve Bank of New York’s Household Debt and Credit, Americans’ average debt — across mortgages, student loans, credit card bills, etc. — comes to nearly $60,000,” said Kade. “The key to tackling debt isn’t to focus on how much you resent the burden it poses. Remember that we want to get you to a place where you can spend, too, without getting yourself deeper into a bind.

“Freeing yourself from high interest credit card debt, especially, can give you a chance to breathe and focus on how you actually want to use your money. Consider prioritizing debts with the highest interest rates first. Or, if you thrive off that quick rush of accomplishment, you can start with those that have the smallest balances.”

Treating Yourself With the Wrong Thing

“Anyone who’s ever tried a harsh diet knows that it’s difficult to be abstemious 100% of the time,” Kade said. “So, instead of recommending that you cut out little luxuries, I’m going to suggest that you truly assess how much joy you’re getting from each of your little rewards. After all, very inexpensive treats can sometimes bring outsized joy.”

Kade said that she impulsively purchased a Trader Joe’s tempura-crusted seaweed snack for $3 or $4, and it was one of the most enjoyable things she’d eaten all week — even more than if she would have opted to eat out one night that week when she didn’t feel like cooking.

“My seaweed snack brought me much more pleasure than a whole meal at a restaurant would have,” she said. “If you have big savings goals, try using these small treats to spur real financial change, reserving them as a reward for achieving financial milestones.”

Not Planning for the Bigger Picture

“Whenever I work with a relatively healthy person in their 20s, 30s or 40s, they’re usually surprised by how affordable a policy can be to help protect their family’s finances if they were no longer here,” Kade said. “Similarly, don’t get me started on the power of contributing a ton to your 401(k) or IRA while you’re young, which gives your investments more time to grow. The further in advance you can plan, the more you’ll probably thank yourself later.”

3 Habits To Adopt in 2024

Here are three habits to adopt this year, according to Kade.

Set Up an Emergency Fund

“Ideally, I tell people to aim for six to twelve months’ salary as savings in case a family emergency hits — e.g., job loss [or] medical emergency,” Kade said. “If you’re able, you might set up an automatic transfer from your paycheck or checking account to your savings, so you’re not tempted to spend the money on something else.

“Saving $100 a month for a year would leave you with $1,200 — even more after you’ve earned interest! — to help you feel prepared for whatever life throws at you.”

Start Planning for Your Children’s Goals

Kade said that once you’re confident about your own financial security, you can start thinking about your kids’ futures.

“That may mean opening a UGMA (Uniform Gifts to Minors Act) account, which can be used for anything that directly benefits the minor,” she said. “That could include things like their first car, band equipment, after school programs, educational costs — even their first home or wedding. If you’re focused on saving for college, you might also consider a 529 account, which is a tax-advantaged way to set aside money to be used specifically on educational expenses.”

Ask for a Raise — or Find a Side Hustle

“Saving is a major part of the equation, but so is generating income in the first place,” Kade said. “Maybe 2024 will be the year you meet with your boss to discuss a potential raise. Or, perhaps your talents and passions outside of your 9 to 5 will lead you to a side hustle that suits your lifestyle while bringing a little more money to the table each month.”

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This article originally appeared on GOBankingRates.com: Stop Wasting and Save More: 5 Habits To Ditch and 3 To Adopt in 2024

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