As we step into a new year, one of the most empowering things we can do is take control of our financial health. Budgeting isn’t just about cutting expenses; it’s about setting yourself up for long-term success, feeling confident in your choices, and aligning your financial goals with your values.
At LGLH Bags, we believe in the power of intentional living—whether it’s choosing eco-friendly, vegan leather accessories or making conscious financial decisions. So, we’ve put together some practical, realistic tips to help you improve your financial stability in the year ahead, while also staying true to your values.
1. Start with Your “Why”
I remember learning this tip in Basic Training. Every time we started a new mission or journey in my military career; I hear my Senior Drill Sergeant Johnson asking us “What is your Why? Your Why to be here? Your Why you want to keep pushing through the bulls$***.”
The first step in any budgeting journey is understanding why you want to manage your money more effectively. Whether it’s saving for a big purchase (like a luxury LGLH vegan leather bag!), building an emergency fund, or reducing debt, knowing your purpose gives you the motivation to stick to your budget.
When you align your financial goals with your personal values—whether that’s supporting sustainable brands, investing in experiences over things, or creating a more secure future—it makes the process feel more meaningful and empowering.
2. Create a Clear, Realistic Budget
A budget is a roadmap. It guides your spending, saving, and investing so you can reach your goals. But it’s important that your budget reflects your actual income and expenses—not an idealized version of your spending habits.
Here’s how you can start:
- Track your income and expenses: Write down everything you make and spend each month (I mean everything), from your salary to subscription services. This will give you a clearer picture of where your money is going.
- Set achievable goals: Instead of overwhelming yourself with lofty goals, start small. Focus on paying off high-interest debt or building a specific savings fund (like for a new LGLH bag or a Vacation for my example!). Remember, progress is progress, no matter how small.
- Prioritize: Distinguish between your needs and wants. Make sure essentials like rent, utilities, and groceries are covered first. Then, carve out money for things that truly bring you joy, like sustainable fashion or experiences with loved ones.
3. Automate Savings & Payments
One of the best ways to stick to your budget is to set up automatic payments and savings contributions. When you pay yourself first—by automatically transferring a percentage of your income into a savings account before you touch it—you remove the temptation to spend what you don’t have.
Additionally, automating bills ensures that you never miss a payment and can avoid late fees. Whether it’s rent, subscriptions, or credit card payments, setting up auto-pay removes the stress and ensures financial stability.
4. Cut Back on Unnecessary Spending
We all have those little subscriptions or habits that add up over time. This year, it’s time to take a closer look and identify areas where you can reduce costs without sacrificing quality of life.( My life example: I LOVE Coffee! But, stopped going to the coffee shop next to my house every time I had morning classes, and started making it at home. I actually learned that there is so many different herbs you can add to coffee that just add unique flavors while healing internal organs. )
Here are a few tips:
- Audit your subscriptions: Are you still paying for streaming services or apps you don’t use? Cancel those recurring charges to save money each month.
- Shop smart: When it comes to big purchases, such as buying new clothes or accessories, consider investing in timeless, quality pieces that will last longer. At LGLH, we focus on creating beautiful, durable bags made from vegan leather—so you can treat yourself while still being eco-conscious and financially responsible.
- Cook at home: Dining out can be a fun treat, but it’s an easy area to cut back. Plan your meals, prep ahead, and cook more at home. Not only will you save money, but you’ll also enjoy healthier meals.
5. Build an Emergency Fund
Life is full of unexpected twists—whether it’s a car repair, a medical bill, or job uncertainty. Having an emergency fund can help you weather these storms without dipping into credit cards or loans.
Aim to save at least 3-6 months’ worth of living expenses. Start small, but stay consistent. An emergency fund is a safety net that provides peace of mind and financial freedom.
6. Track Your Progress & Adjust
Budgeting isn’t a one-and-done task—it’s a process. Regularly review your budget and make adjustments as needed. Life changes, and so should your financial plan. If you get a raise, for instance, consider increasing your savings contributions or paying off more debt.
Use apps or spreadsheets to monitor your spending and see where you’re hitting your targets or need to improve. Tracking your progress will not only help you stay on course, but it will also make you feel empowered and in control.
7. Invest in Yourself and Your Future
Finally, remember that financial stability is about more than just managing money—it’s about investing in yourself. That might mean taking a course to advance your career, saving for retirement, or simply spending time on your mental and physical well-being.
When you take care of yourself, both in the short and long term, your financial decisions will be more aligned with your values. Whether it’s investing in high-quality, eco-friendly accessories that make you feel confident or building skills that will help you achieve your financial goals, personal growth is key to a secure future.
Your Path to Empowerment
Budgeting doesn’t have to be a source of stress—it’s a tool that can empower you to live more intentionally, achieve your dreams, and feel more secure in your financial future. By creating a clear plan, automating your finances, cutting back on unnecessary expenses, and investing in yourself, you can set yourself up for a year of financial success.
And remember, every small step you take is a step towards more freedom and confidence. So, whether you’re saving for a new purse or building up your emergency fund, know that you have the power to make the choices that align with your goals and values.
Cheers to a year of financial stability, empowerment, and conscious living!
What financial goals are you setting for this year? Share your tips or questions with us in the comments below—we’re all in this together!