NEW YORK (CBSNewYork) — The start of the new year is the perfect time to hit the reset button on your budget, and experts say small sacrifices can lad to big savings.
It also means forming new habits.
We’be all popped into a store to pick up one item, only to leave with ten times that. This year, instead of suffering from buyer’s remorse some shoppers are trying to find new ways to cut back.
“Going out less,” said hopeful saver Naveen.
“I try to always reuse containers, wash plates instead of paper plates,” penny pincher Anastasia Parent.
Is that five dollar cup of coffee really necessary? It adds up to $1,800 at the end of the year, money that could go towards a vacation. Investment strategist Tim Ghriskey says you can even save it.
“Financial planning is about both income and expenses,” he said. “On the expense side of the biggest things you can cut out or be careful about vacations and restaurants.”
Eating out is a big money pit, says Ghriskey, so if possible try to rein in on it. Also, slow your spending on alcohol with a possible “dry” January.
You can cancel any unused subscriptions running on your cellphone, like Netflix or Amazon Prime.
Turning down your heat or investing in a programmable thermostat are among the small changes life coach Irina Popa Erwin says can save big longterm.
“It takes 21 to 32 days to break a habit, but you don’t break a habit you replace a habit,” she said. “Don’t tell yourself you’ll start saving $100 a week, because that will not happen. Start saving $20 a week.”
While you think coupons may be saving you money, financial advisers say they can also encourage you to buy something you don’t actually need. Instead, move on before something else in the aisle catches your eye.
To make your new routine stick, experts say find a friend or mentor who will hold you accountable.