MOSES LAKE — January, being the season to take stock and resolve to do better, one of the places where people usually resolve to do better is their finances. People resolve to save more, spend more wisely, all the things. How to do it is the question and it starts, said James Shank, Moses Lake, a financial advisor with Edward Jones, with an analysis.  

“What you need versus what you want versus what you’re trying to save for the future,” he said. That includes an analysis of spending patterns. “Here’s what I do on a daily basis.” 

Financial advisors at Gesa Credit Union said in a press release that people should review the entire previous year to see where they were spending money. That information is crucial to figuring out what to do next, the Gesa release said. Writing it all down and planning ahead makes fiscal discipline easier, Shank said. 

The spending analysis can be enlightening, the Gesa release said. 

“Actually, look at where your money went. Not where you think it went—where it actually went,” it said. “Most people are surprised, and not in a good way.” 

Whether or not outgo is higher than income – but especially if outgo is higher than income – people can use that information to see where they need to adjust how they’re spending money, Shank said. He cited a daily stop at a coffee stand. 

“Buying that coffee is a habit,” he said.  

Making the adjustment can be a challenge, he said, but it gets easier over time. 

“The biggest thing is developing those habits,” he said. 

With the information gained from a spending analysis, people can start looking at areas where they can direct spending. There’s often more money there than people realize, the Gesa release said. 

“A lot of people say, 'I have nothing left,' but haven't actually tracked their spending. The money is often hiding in plain sight—subscriptions you forgot about, convenience purchases that add up, lifestyle creep you didn't notice,” it said. 

That’s when the work of changing habits begins. 

“Once you've got that picture, identify one or two areas where you consistently overspend. Not 10 areas. One or two. Trying to fix everything at once is the fastest way to fix nothing,” the Gesa release said. 

Shank suggested allocating money where it needs to go, starting with monthly expenses. 

“You’ve got to pay your bills,” he said. 

After that, people can divide what’s left depending on how they want to spend it – a certain amount for short-term spending, like that daily coffee, and a certain amount for mid-range goals, like a car down payment or travel. The third savings category would be long-term goals, like retirement.  

Shank said a system that allocates money to various parts of the spending plan right when the paycheck arrives helps to stick to it. 

“If you put that money away before it goes in your pocket, it’s a lot easier to do,” he said. 

The Gesa financial advisors said consistency is the key. 

“Small, consistent progress beats dramatic overhauls that don't last. The person who saves $100 a month for 10 years will always beat the person who swears they'll save $1,000 a month and quits by March,” the press release said. “Start where you are. Use what you have. Do what you can. That's enough.”