A Financial Resolution To Help You Achieve Other Money Goals

No matter what financial resolutions you have this year, this one key resolution can help you make progress on most of your other money goals.

by Andrea Norris-McKnight

Achieving most financial goals usually requires one thing — money. Whether you want to save for a house, vacation or emergency fund, pay off debt or start investing, you need money. You can either find that money in your current budget or make more money.

Trimming the budget is often easier than creating or finding an additional income source — and it is a goal that can help you reach other financial goals. Reducing non-essential spending is a good place to start.

You don’t need to cut it out completely to achieve your goals. You just need to cut back a bit. The following tips can help.

Note: If you’re already living on a bare-bones budget, you might not have much more in the budget you can cut. A bare-bones budget means you have already cut all of the non-essentials. You can continue finding a few dollars to cut here and there, but you may be at the point where finding additional income is the only way to get the extra cash you need. Consider finding a part-time income source or starting one of these side gigs.

Curb Some of Those Impulse Purchases

Most essential spending is planned. We know we have to pay the electric bill each month, and most of us make a grocery list before heading to the store or placing an online order.

But a lot of non-essential spending is unplanned. Whether it’s a new pair of shoes marked down too low to pass up or an impromptu dinner out with friends, those impulse purchases can sometimes eat up any extra cash you have to put toward a financial goal.

Pass Up Some of Those Deals

Some of us have a hard time passing up a good deal. Stockpiling food and other household goods can save you a lot of money, but if you already have 12 cans of tomatoes and 10 boxes of toothpaste on hand, any additional tomatoes or tubes of toothpaste no longer fall into the “needs” category.

You’ll be better off putting the extra cash toward your money goal rather than increasing your tomato and toothpaste stockpiles, no matter how low they are currently priced.

Plug Those Spending Leaks

Are you paying for any subscriptions or memberships you don’t currently have time to use? Even plugging a small leak, such as a $10-per-month seldom-used streaming service, can free up $120 this year. Imagine if you can find three or five $10 leaks. That could help your financial goal along quite nicely.

Related: 8 Habits That Plug Parental Spending Leaks

When it comes to reducing spending, most of us are all for cutting the electric bill or finding cheaper auto insurance. But cutting out those non-essentials? Not so much. But it is often necessary to achieve financial goals.

Related:

• 10 Ways to Prevent Non-Essential Spending
• 9 Costly Mistakes Many Bargain Shoppers Make
• Are Impulse Buys Sabotaging Your Budget?

Reviewed December 2024

About the Author

Andrea Norris-McKnight took over as the editor of The Dollar Stretcher and After 50 Finances after working under the site founder and previous editor for almost 15 years. She has also written for Money.com, GOBankingRates.com, HavenLife.com and The Sacramento Bee.