In this episode of NPR's Life Kit podcast, the focus is on breaking five financial habits as we step into the new year. The discussion revolves around essential tips: first, curb impulsive purchases, highlighted by a woman's inspiring journey during her "no-buy" year. Next, be mindful of lifestyle creep, which refers to the tendency to spend more as your income rises. Also, consider canceling any unused subscriptions, and effectively manage credit card debt by utilizing balance transfers and consistently paying off statement balances. Lastly, hone your negotiation skills for various situations, such as dealing with medical bills. By adopting these strategies, you could significantly reduce debt and enhance your financial health—just like the interviewee who significantly paid down her debt through the "no-buy" challenge.
