3 Money Moves To Make Now To Save Thousands in 2025, According to Frugal Living YouTuber Kate Kaden
Written by
Mary Green
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Amber Barkley
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Many Americans are struggling to stick to a budget, with one of every three people routinely spending more money than they earn, according to a survey by Wells Fargo. Making ends meet can be tricky in today’s economy — but fortunately, the right strategy can really help.
In a new YouTube video, personal finance guru Kate Kaden lays out her tactics for planning ahead and “frontloading your finances” in the coming year, so you can cut down on your spending, pay down your debt and have your best financial year to date.
Kaden suggests that you start planning for the start of the year well ahead of time. Ideally, you should put together a financial game plan in the fourth quarter of the preceding year to set yourself up for success and start the new year calm, prepared and inspired.
Don’t Overspend on Gifts: Remember, It’s the Thought That Counts!
This tip is likely going to be a challenge: After all, who doesn’t love giving gifts? Many people love to shower presents on their family and friends. Going all-out in the holiday season is festive, fun and exciting.
That is, it’s fun until you look at your credit card statement. All too often, Kaden said, people “dig [themselves] into a hole” and get into debt by overspending on holiday gifts. Kaden added, “Don’t dig yourself into a hole, because you are the only person that is going to have to dig your way back out.”
Instead of overspending on presents, look for lower-cost ways to show your love. Baking cookies together, decorating gingerbread houses or taking a stroll through a holiday market are all great activities for enjoying the season together. Homemade gifts are also a wonderful way to express your feelings, and they’re often more cherished than store-bought presents.
Plan To Go on a Fiscal Fast in January
More and more people are embracing “no-spend January” as a great way to kick off a year of fiscal responsibility. After the hectic holidays, no-spend January can be a great way to re-center yourself, get back to sensible financial habits, and set aside some extra cash for the rest of the year.
Just a quick heads-up that “no spend” means no spending on non-essential items. Of course, you’ll still need to buy groceries and pay the bills. But you won’t dash out and buy new clothes, go out to restaurants or buy anything that you don’t actually need.
Kaden suggested planning ahead and asking your loved ones to give you gift cards over the holidays so you can still have the occasional splurge during no-spend January. If you have a weakness for coffee drinks, for example, then ask for gift cards for your favorite coffee shop — just don’t let yourself keep going out for coffee once the gift cards run out.
Otherwise, no-spend January is a great time to take care of needs, let go of wants and build up your savings, Kaden explained.
Open a Retirement Account
It’s never too early to start planning for your retirement. Thanks to the miracle of compound interest, even the smallest investments can grow into sizeable wealth over the course of a few decades.
But if you haven’t started saving yet, don’t panic! Kaden admitted she didn’t start investing until later in life. The truth is, it’s never too late to begin investing in your future, either.
Kaden suggested opening a Roth IRA as soon as possible. Take the time to set one up and select the investment portfolio that’s right for you. If you get that done now, you’ll be ready to start investing in January, and you won’t have any excuses to stop you!
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