to help you track your spending, then the fall is a great time to give one a try, says Ashley Lapato, a financial expert on TikTok who posts as @TheOrganizedWallet and is a spokesperson for the budgeting app YNAB.“I always think the first step is a zero-based budget,” she says, which means every dollar is accounted for, including money set aside for savings and any debt payments.
“It forces you to confront spending decisions and to get really clear about financial priorities,” she says, because you comb through every little bit of spending.Lapato likes to start each day with a quick check of her own budget. For fewer than five minutes every morning, she logs in to her budgeting app or checks her bank account and financial goals.
“Doing this has changed my perspective. It puts me in the right brain space in the morning if I’m looking at bills, goals and things I want to accomplish,” she says. Then, when she has to make spending decisions later in her day, her balances and goals are top of mind.
“Before you sock away other money into savings, pay off high-interest debt — if you’re paying 18% or higher on a credit card, then it’s a no-brainer. Pay off the debt first,” he says, because yields on savings accounts are far lower than those interest rates.A money cleanse should also include a tax checkup, says Karla Dennis, an enrolled tax agent and founder of Karla Dennis and Associates, a tax and accounting services firm.
“Instead of feeling guilty, I have it built into my budget as its own category,” she says, adding that she sets aside a bit of money every month for this purpose. “Give yourself permission to enjoy life,” she adds — a philosophy that applies to this fall and beyond.This column was provided to The Associated Press by the personal finance website NerdWallet. Kimberly Palmer is a personal finance expert at NerdWallet and the author of “Smart Mom, Rich Mom.” Email: kpalmer@nerdwallet.com.