Along with resolving to take better care of your health in 2014, why not also take care of your wealth? Here are four ways to resolve to be more frugal – Frugalutions! – in 2014:
1. The January Money Diet. During all of January 2014, participants try to cut out all nonessential spending. That means spending money only on necessities, like food, and paying bills.
It also means no shopping for clothes or electronics or media, no dinners out, and no entertainment aside what you can do for free.
The idea comes from Happy Simple Living.com, who is rolling out their 5th Annual Diet in 2014. It’s meant to get your shopping habits back in order after going nuts over the holidays.
2. Shop Secondhand Challenge. Participants in this challenge can only buy secondhand items from anywhere to a month up to a full year. Challenges also vary as to what people buy secondhand, whether it’s just clothing, or everything except for food.
There are several challenges going on every year, like at Buy Nothing New.com. The idea is to pick a goal that works for you – such as, only buying secondhand clothing for a year – and stick to it.
http://www.buynothingnew.com/ – this is for the month of October, but can really be done whenever.
3. Pay Down Your Cards Challenge / Emergency Fund Challenge. In 2014, resolve to pay off your most expensive credit card. Or, if you don’t have a ton of debt, resolve to set up an emergency fund of 6-8 months of living expenses.
A great way to make yourself accountable for paying down your card is to post your intention on social media and then post regular updates. You can even start a Group or a Page and invite people to follow along in your journey to pay off your cards.
Setting up an emergency fund is as easy as creating a new savings account at your local bank or credit union. Talk to your banker and ask for an account that will automatically withdraw money each month from your checking account.
4. Put Your Budget On A Diet. On a fitness diet, you eat less and move more. On a budget diet, you spend less and save more.
In 2014, closely examine every part of your budget and research areas where you can cut back. Two places to start: refinancing your mortgage for a lower interest rate or a better payment plan and your cable/dish/Internet/phone plans.