What is your favorite coffee drink? Personally, I always feel out of place when I go to Starbucks.

As I listen to the customers in front of me placing their complicated orders, I can’t help but think there was a college course—or possibly even a degree—that I somehow missed. When I finally reach the counter and the highly skilled barista asks for my order, I feel almost embarrassed for simply asking for a plain black coffee. But honestly, that’s all I want. Just… a coffee.

In personal finance, there is a concept called the “latte effect”. The main idea is that repetitive, small purchases add up over time and can cause havoc on your budget even though you don’t feel like you spend that much money. This “latte effect” is real, even if you aren’t a coffee drinker. As we start the new year, it’s a great time to not only reflect on the good and bad of your budget last year but also consider what steps you might want to take in 2025 to improve. 

Consider these 6 tips for sticking to your budget in 2025.

Tip #1: Create your budget.

Maybe it goes without saying, but if you want to stick to your budget in 2025, you first need to create your budget. And before diving into a budgeting app, I always recommend using a paper and pen, or a simple spreadsheet to lay out your monthly budget. By creating your budget in this way, you can tailor it to exactly your needs and not get confused with the app’s ready-made templates.

Tip #2: Keep it simple.

 Budgets can be a net negative if it is too granular or complicated. The key to managing a budget well is keeping it simple. For example, consider combining several weekly expense categories, such as groceries, dining, and other household expenses, into one budget category. This will significantly reduce the complexity of your budget, and allow you the freedom to adjust to the needs of the week without the need to make changes to the budget every week or month.

Tip #3: Use multiple checking accounts.

You might think that you’re only allowed to have one checking account, but in reality, you can own multiple checking accounts. For example, if you have a high-yield savings account, consider setting up a separate checking account specifically for budgeting purposes. Simply identify the budget categories you want to focus on and transfer money into that special checking account for that purpose. As you spend from this account, you can monitor your balance in real time using your banking app, eliminating the need to categorize your transactions to determine the remaining budget.

Tip #4: Find a budgeting system you actually enjoy.

There are several budgeting apps available and many of them have the same basic features-connected accounts, customized categories and groupings, and reports. What differentiates them is their user interface and their budgeting approach. Take some time to find an app that is not only intuitive for you but is also enjoyable to use. Budgeting apps typically offer a free trial or freemium version to give the system a test drive. Use the tool both on the web browser and your mobile devices. If you are frustrated or confused about the app’s setup, try a different app and see if you get a better result.

Tip #5: Review your budget daily.

The easiest way to manage and stick to your budget is to check it regularly. I recommend spending just five minutes a day categorizing your transactions and reminding yourself of how much money you have left in each budget category. Remember, your budget is not a tool to punish you or hold you back; it is in place to help you stay disciplined as you navigate the ups and downs of life.

Tip #6: Have a financial counselor hold you accountable. 

Lastly, if you are still struggling to stick to your budget, consider hiring a financial counselor who will hold you accountable for creating and sticking to your budget. There is nothing wrong with asking for help and Certified Christian Financial Counselors would love the opportunity to help you along this financial journey together.

As you look ahead to 2025 and the opportunities it brings, think of your budget as a valuable tool that can help you reach your goals. Budgets are crucial for staying focused, paying off debt, saving for the future and allowing for generous giving. Start the New Year with a clear and manageable budget that you can commit to throughout the year.

About the author: Nate Sargent loves serving at his church with his wife and two children. In his free time, Nate enjoys running, hiking, and woodworking. Learn more about Nate and his financial counseling services through his website, natesargent.com.