If you’re looking for a quick and easy way to improve your money to start the year, I’ve got something for you. Some of the lowest hanging fruit in personal finance is to cut out unnecessary spending.
Unused subscriptions, products or services that no longer serve you, and excessive takeout are all examples. This is all stuff we mindlessly spend on that’s easy to cut out once we’re aware of it.
Related: Holes in the Boat That Are Draining Your Bank Account
How To Do It
Here’s how to cut that unnecessary spending. For the next two weeks write down everything you spend on. You can write it in your phone, carry around a small notebook, or any other method you choose. The key is that you’re doing it.
When I say write it down, I mean everything. Big purchase online, takeout on Wednesday night, lunch on Friday, a candy bar at the convenience store. Get it all.
At the end of the two weeks, scan the list of things you wrote down. Mentally note the necessities, items your really wanted, and goods or services you don’t care about.
Let that sit for a couple hours and sometime later that day, sit down and make a list with three sections:
- Necessities
- Glad you bought
- Don’t care about
Write each item under the appropriate section and review what you wrote. Keep the “necessities” and “glad you bought.” Anything in the “don’t care about” gets eliminated.
This way you’re keeping what you need and want, while getting rid of the waste. Super easy way to shave off tens or hundreds of dollars every month with very little effort.
Take Action
Next, take action and cancel the unused subscription, make your own lunch an extra day, etc. Then with the savings, invest the difference by setting up an automatic contribution to an investment account.
For example, if you are cutting $145 per month, set up monthly investment contributions of $145. If it’s $210, set it up for that amount.
Expected Time
Before you commit to this two week challenge, here’s how much time it should take.
- Tracking for the two weeks: 5 to 6 minutes per day, or 70 to 84 minutes over two weeks
- Mentally reviewing list: 3 minutes
- Categorizing each item: 35 minutes
- Total time: 108 to 122 minutes (about 2 hours)
There you have it. If you’re willing and wanting to spend between 108 and 122 minutes over two weeks, you’ll be able to start the new year cutting out waste and spending less than you did in 2025.
Are you in?
