UNITED STATES—Well, it is a New Year and with that, it should be time to reflect on your finances. Why? You’re probably starting to get those credit card bills in the mail or email, and you might be stunned. I know I had a bit of a shock as I realized I spent a bit more on my credit card than I thought I did. Enter the budget battle America. With the start of the New Year, so many people’s focuses tends to be eating healthy and exercising more, but how about re-thinking your finances.
Perhaps one of the biggest stressors for Americans is money, and there are those who don’t have it and there are those who have a ton of it. Let’s not dive down that rabbit hole of wealth. That is another column or two or three that we would need to accurately discuss that issue. With that said, you have to ask yourself the question: “Where am I financially right now?” Am I in a place where I am happy? For most of us, the answer is simple: NO.
So, what can we do to change that? For starters, look at what you are spending. Did you spend a bit more in 2025 than you actual saved? For a vast majority of us, the answer is yes. So, the answer is to start to examine where that actual spending took place. Was it on several trips to Starbucks during the week? How about having fast-food for lunch each day? Having take-out with the family more than 2 times a week? Are you shopping a bit more than what you should? Loaning money to family and friends that you don’t get back.
Do you see where I am going with this? You can start to see where you are spending money and find ways to cut back. For me, I plan to cook more meals at home. Sometimes I am just lazy when I get done with work, school or both. As a result, I’m spending money on take out, when I could be using that money towards my retirement or savings. Why does this matter? A vast majority of Americans have food in the fridge, freezer or cabinet. It is up to us to take the food out and craft a dish. Crafting that dish can save us a lot of money, money that can be used for other things in our life.
You might say like what? How about those monthly bills? Towards a vacation, a home improvement project, an item that has caught your eye, or towards your rainy-day fund. Tackling debt is perhaps the most important thing you can do for your finances. When you eliminate debt that places more money into your bank account and your wallet. Once you have that credit card paid off, guess what?
You have more money to do other things. The key thing about paying off debt is doing your best to NOT create more debt. Take the credit card and cut it up or place in a place where you don’t have access to it. When it comes to your monthly bills, you can’t quite get rid of some of the necessities, but you can negotiate terms to lower your monthly electric bill, gas bill, telephone bill, car note, insurance, grocery bills and a few others. Now streaming services, that is a plus, but do you NEED every single streaming service at your fingertips? I don’t think you do, so get rid of those that you are barely watching.
You might not think that $10 for Starz, Peacock, Showtime or whatever service you have is worth it, but do the math, that’s $120 a year and if you’re NOT utilizing that service daily, you’re tossing money in the trash. We should ALL HATE the notion of throwing money away, especially if you have a tight budget, where you’re working long hours, spending tons of time away from the family and you’re dealing with sleepless or stressful nights.
We all hate it but create the budget. Know what you’re bringing in, know what is going out, figure out how much you can save, and see what you have left over to spend on yourself or that discretionary income. If you’re focused on spending on yourself before taking care of the bills: that is problem #1. Change that logic of thinking right away. Focus on your core expenses before treating yourself.
If you start 2026 with smart tactics when it comes to your money, it will absolutely pay off as the year progresses. You don’t want to be in that pickle where an unexpected expense arises, and you don’t know where you’re going to get the money to take care of it. Too many of us focus on wanting to have money in our pocket versus paying off those expenses. Remember, if you pay off your expenses, you WILL HAVE MORE MONEY IN YOUR POCKET!
