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Frugal living influencer Kate Kaden has been sharing personal finance, budgeting and money-saving tips on her YouTube channel for at least four years. With today’s expenses growing every day, it’s no wonder that more Americans are looking for fresh ideas on how to save money or cut expenses. In a recent video, she shares with her YouTube audience how her followers can “elevate” their finances.
Here’s her road map for financial success this year.
1. Find Ways To Make More Money
Now is the time to kick-start that side hustle. And then add another one.
Kate calls herself a “part-time job junkie.” If you want to make more money this year, consider a part-time job on top of your regular job. She suggested, “Find a way, make a way.” Many of you already are doing just that. A GoBankingRates survey from last year found that 40% of Americans have a side hustle. You could also try to tack overtime hours onto your full-time job. Ask your manager for more hours. See if one of these eight up-and-coming side hustles is a good fit for you.
2. Know When To Say “No”
Kaden says she’s a reformed people pleaser and acknowledges how hard it is for her to say “no.”
“You can’t say yes to everything, you’ve got to know when to say ‘no’ and you’ve got to be okay with that,” Kaden shared. When you’re on a budget, you’re going to suffer later if you say “yes” to something that isn’t in your budget and you feel pressured to do it. That might mean turning down a few outings with friends. You can’t say “yes” to everything your kids ask you for. You need to say “no” now so you can have confident, excited yeses in the future, Kaden suggested.
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3.Know When To Say “Yes”
Sure, you have a budget you want to stick to and it’s important that you stay the course you set out when you have financial goals you’re trying to reach. But don’t let a frugal living mindset get in the way of living life, Kaden suggested.
When a rare opportunity comes up that you want to say “yes” to, it’s okay to do that, she said. “Be excited about it and really take that experience for all it’s worth.”
Frugal living or living on a budget doesn’t mean going through life without ever spending money on things that bring you joy. That’s one of the downsides people say about the FIRE (Financial Independence Retire Early) movement. Some make lots of sacrifices early on hoping to find happiness later when they’re retired but it doesn’t happen.
4. Set Aside Money for Important Things
Think about where the money you’re earning is going to serve you best. Kaden has a line item in her budget that has money funneled into it for things she finds fun.
“Frugal Living is about spending sparingly on the things that don’t matter so that we can spend unapologetically on the things that do,” Kaden said.
Knowing your financial priorities-whether it’s paying off debt, building up savings, or contributing to retirement-can help you stay focused on your goal. Create room in your budget for “fun money” so you have it allocated when you want to buy yourself something, meet up with friends at the bar, or do something special. Some personal finance experts suggest this be five to 10% of your monthly income after taxes.
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5. Become at One With Your Budget
Know your budget inside and out, Kaden suggests. It’ll likely take about three to six months for you to understand your monthly numbers and know how much is coming in and going out on average each month. Once you get the hang of this you’ll know if you have money in the budget for items that crop up throughout the month. This is how you’ll be able to do this consistently and accurately each time. Try one of these best budgeting apps for 2024.
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