With the holidays over, we have now fallen back to the daily grind. Some of us, due to an excess in year-end indulgences or generosity, have greeted the New Year with lighter pockets and slightly shrunken savings accounts. And you know what they say, “There is no time like the present.” If you want to replenish your savings and acquire more money to spend for this year and further beyond, better start now than risk the fate of having continually dwindling funds throughout the year.

Spend Less than You Earn

This may seem like a simple rule of thumb, but it is easier said than done. Many of us actually have no idea just how much we spend in a day, much less how much we spend in a month. Some of us may have a general idea because of the bills we pay every month, but many forget to factor in daily expenses (e.g. groceries, commuting fares or gas expenses, pet care and maintenance, regular medication costs). Do this, and do not be surprised if you find that your daily and monthly expenses are much higher than what you have expected them to be.

Try to make a regular record of your daily expenses and then plan a budget. Wean yourself off what you would consider unnecessary wants, and prioritize your needs. Living beneath your means is in no way miserly, nor will it make your life miserable. You don’t seriously have to buy a Starbucks venti latte every morning, do you? The bulk of our earnings should be saved rather than burned. This way, not only will our funds get back to their previous state before last year’s holidays, but we will also have enough for that unexpected rainy day.

Choose Cash over Credit

Just because you have one or two credit cards does not mean you should use credit for even the smallest purchases. You can afford to pay in cash after filling up your car with gas, for example, or when you only need to buy a few items at the department store. Using your card too much can lead to credit card debt. There is no such risk with good old-fashioned cash payments. When you do use your credit card, try to charge as little as possible. And when the due date is given, make sure that you will be able to pay your credit card bill on time. See point number one to learn one way to ensure that you will always have money to allot for credit card bills payments.

If you feel more financially secure when you are not carrying a lot of loose cash then a good way to avoid the threat of credit debt is to opt for a prepaid debit card. The main difference between credit cards and debit cards is that the latter only allows the cardholder to spend within the account’s remaining balance. Whatever amount you put into your debit card is how much you can spend using it. It is almost like paying cash, but with the convenience of plastic, cashless payment. Debit card transactions are never charged interest, and there are no monthly bills.