It’s January, and reality is starting to sink in. The Christmas shopping spree that felt totally worth it at the time is now staring back at you in the form of a credit card bill you’re scared to open. Meanwhile, that shiny new budget you were so proud of on January 1 is already feeling a bit too tight.
If you’re feeling overwhelmed by your finances—or worse, like your money is controlling you instead of the other way around—you’re not alone. Plenty of people are in the same boat, stuck in the vicious cycle of overspending, under-saving and feeling like they’ll never get ahead. But here’s the good news: you can break that cycle.
Getting your finances in order doesn’t require a degree in economics or a spreadsheet with 40 tabs. It just takes a clear plan, a little discipline and a whole lot of grace for yourself. Whether you’re looking to finally stick to a budget, get out of debt or just stop panicking if your card will get declined at Chick-fil-A, here’s how to set yourself up for financial success this year.
1. Start With a Zero-Based Budget
Think of your income like a pie: every dollar needs a purpose. A zero-based budget means you assign every dollar you earn to a specific category—rent, groceries, transportation, savings, and, yes, generosity.
Here’s a simple framework:
- 10% Giving: Start by setting aside a percentage of your income for tithing or giving to causes you care about. Generosity is an act of faith, but it also reminds you that money is a tool, not your master.
- 20% Savings: Whether it’s an emergency fund or long-term goals like a house or retirement, prioritize saving something each paycheck, even if it’s a small amount.
- 70% Expenses: This covers your living costs—housing, food, transportation, insurance and fun money (because nobody sticks to a budget that doesn’t allow for a little joy).
Apps like You Need a Budget or EveryDollar can make setting up a zero-based budget simple and help you stick to it.
2. Build an Emergency Fund First
Before you focus on paying off debt or investing, aim to save $1,000 for emergencies. Why? Because life happens—your car breaks down, your dog needs surgery, or you suddenly need a root canal. Having a small buffer keeps these surprises from derailing your finances.
Once you hit that $1,000 mark, start working toward a larger emergency fund of 3-6 months’ worth of expenses. It’s not glamorous, but it’s essential.
3. Tackle Your Debt Strategically
If debt is weighing you down, create a plan to attack it. Two popular methods are:
- Debt Snowball: Pay off your smallest debt first while making minimum payments on the others. Once the smallest is gone, roll that payment into the next debt. This method builds momentum and motivation.
- Debt Avalanche: Pay off the debt with the highest interest rate first to save money in the long run.
Whichever approach you choose, the key is consistency. Avoid taking on new debt while you’re working to pay off the old.
4. Automate Everything You Can
Take the guesswork out of budgeting by automating your financial life. Set up automatic transfers to savings, schedule your bill payments and even automate your tithe if your church allows it.
Why? Automation eliminates human error (or, more likely, human forgetfulness) and makes saving and giving as regular as paying your rent.
5. Review and Adjust Monthly
Budgets aren’t set-it-and-forget-it tools. Review your spending at the end of every month to see how you did. Did you overspend on dining out? Was your grocery bill higher than you expected? Adjust your budget for the next month accordingly.
This is also a good time to check your financial goals. Are you on track to hit your savings targets? Do you need to cut back in some areas to stay on course?
6. Make Room for Generosity
Generosity isn’t just about giving to your church—it’s about creating space in your budget to bless others. Whether that’s buying groceries for a friend in need or donating to a nonprofit that aligns with your values, generosity shifts your mindset from scarcity to abundance.
If money feels tight, start small. Giving even $10 can make a difference and remind you that managing your finances is about stewarding what God has given you.
7. Find a Financial Accountability Partner
Just like you need a gym buddy to stick to your workouts, having someone to hold you accountable with your finances can make a huge difference. Find a trusted friend, mentor or even a financial coach to help you stay on track and offer encouragement when you’re tempted to overspend.
8. Think Long-Term, But Start Small
Building financial stability isn’t about making huge, dramatic changes overnight—it’s about small, consistent steps. Set up your budget. Save a little each paycheck. Pay off that first credit card. Over time, these small steps add up to big results.
Remember: Your financial health isn’t just about paying bills or avoiding debt—it’s about living with purpose and freedom. By taking control of your finances, you’re not just building a better life for yourself, but creating room to live generously and with intention.