A lot of attention is paid to getting your body and mind in shape at the start of the year, but influencer Christina Mychas, author of the Minimalist-ish newsletter and a shopping expert, said the same amount of attention should be put into getting your finances New Year ready in a recent TikTok video.
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She called this “your money winter arc” (winter arc being a term TikTokkers are using to suggest the darkest and coldest months are a good time to focus and visualize on priorities).
Here are nine habits to start new to get your finances on track by the new year.
Learn To Budget
Budgeting may sound like finances 101, and it is, but it’s for a reason. Mychas said, “If you don’t know where your money’s going or even how much you make, you’re going to feel out of control of it all of the time”
She loves the Every Dollar app, which you can use for free (though there is a paid option). She puts every expenditure into the app, claiming, “It really keeps you in control and on top of your money.”
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Pay Yourself First
If you’ve written out your first budget, you have a lot of information already, Mychas pointed out: how much you make and how much you can spend thus how much you have left to save. She said that the traditional method of paying all your bills and expenditures first as soon as you get paid is “backward” and that saving money first makes sure you do it.
Automate Saving
She is a big proponent of automating both savings and investments so that it happens without thought at each payday. Automating takes the work out of saving as well.
Start Investing
Saving is great, but investing is the real way to grow your wealth, Mychas said. With your investing automated, you don’t even have to work that hard at this process, letting compounding interest and stock market gains “[do] its thing in the background.”
She pointed out that her own investment account had grown 15% in the past year, mainly through buying index funds and stocks. She described investing as “how you take care of your future self.”
Set Clear Goals
Saving and investing may be about your future, but Mychas added, “It’s also about enjoying your life right now.”
However, she pointed out that if you don’t have a clear goal of how you want your money to work for you, and you don’t give those goals a name, “you’re never going to get there.”
She recommended not only setting goals, but opening a savings account dedicated to achieving them, be that travel, a house, a new car or a new purse. She said this can also help you get out of the habit of frittering away money on little things (coffee, facials, etc).
Build Your Emergency Fund
Mychas echoed the common phrase “If it can go wrong, it will” and said you want to be prepared for that by saving three to six months of living expenses, giving you a safety net. You can start small, but be consistent in saving, she said.
Think Ahead
There are a lot of small annual fees that can catch you off guard if you’re not planning for them, from your Amazon Prime membership to a magazine subscription that renews annually to your insurance (if you’re not paying it monthly). She recommended you “bake this into your budget” so it’s not a surprise, which will put you ahead of the game.
Shop Your Closet/Use What You Have
While she’s a fan of shopping for the right things, if you’ve budgeted for them, she pointed out, “It’s also important to use what you have.”
She likes the idea of decluttering by “shopping your closet” before buying something new, suggesting that you probably have something similar to what you might be shopping for.
“Shopping is easy but styling is hard,” she said.
Don’t Buy Problems
Lastly, Mychas insisted you stop buying things you don’t absolutely love or need.
“I really feel that the things we buy have to work for us and not the other way around,” she said. Simply don’t put your money into things that don’t light you up.
Following these simple steps can make for a financially secure new year.
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This article originally appeared on GOBankingRates.com: 9 Money Habits Christina Mychas Says To Start Now To Get on Track by 2025
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