Thousands of my students have done this five-day money reset. Now you can, too

It isn’t just a New Year’s resolution. This money reset is about learning lasting skills that will benefit you for life. Thousands of my students have done it, and so can you.

If feeling better about money, and having more of it, is something that matters to you as we enter this season of new beginnings, read on, and try it for yourself.

Day 1: Commit to a weeklong spending detox

No, you don’t get to stop paying rent or your mortgage. A weeklong spending detox is an intentional pause on all non-essential spending. Rather than buying coffees, taking your kids to paid activities or hitting the pay-now button on something that isn’t absolutely necessary, you instead make coffee and meals at home, participate in no-cost activities and skip buying that new toaster or snow blower because the one you have is fine for now.

Completely pausing your spending will feel like a jolt to the system. When that happens, it allows for new (often healthier) patterns to begin to form. It shifts you from autopilot mode into in-control mode.

I encourage two additional steps as you detox; first, transfer money into your savings account every day. It doesn’t need to be much — even $10 a day. But make it meaningful to you; like the equivalent cost of a latte, or the value of the digital cart you didn’t go through with purchasing. Second, jot down a few thoughts and feelings every day about your no-spending process. If you find yourself feeling guilty or upset, interrupt the thoughts — go for a walk or make a smoothie. Negative self talk is not helpful. What is, however, is telling yourself that changing spending habits takes time, and your detox is an extremely effective way of adopting better habits. You’ve got this!

Day 2: Begin purging (10 items or a minimum of one item per room)

Clutter can cause stress and anxiety. It’s also a reminder of how much money has been spent (often on things that don’t matter). By decluttering your space, you can create a more calming environment, which may improve your overall mood and also shift your focus to the things you do have versus what you don’t have; this is a key part of stopping a cycle of overspending for good. It’s also very hard to focus on anything when you’re surrounded by clutter.

Begin to purge your space by going room by room (or space by space) and selecting one or two items per area to part ways with. My personal criteria for purging is to get rid of things that don’t fit, are broken, haven’t been used in six months, have a bad memory or have value and could be sold (this money can be put toward savings, debt or an RRSP contribution). I find that once I’ve done an initial round of purging, I’m very clear about what I have and what I need, and can often do another round. If there is a local charity that I can donate things to (not the broken stuff!), I’ll drop it off. 

Regular purging, on a monthly basis, often results in less anxiety, reduced spending and debt, and more savings.

Day 3: Settle on the most important priorities for your spending this year

With the high cost of living these days, most people can’t afford “all the things.” Don’t be surprised if your friends and family are going through a similar prioritization exercise, and want to tell you about it. This day is dedicated to determining what matters the most to you this year. Is your physical and emotional health most important? How about travel and other experiences? Is debt-freedom the goal? Better spending habits? Narrow your priorities to two or three.

The trick with budgeting (the next step in your reset), is to know your priorities, then plan for those. Non-priority spending is a lot easier to say “no” to when you’re clear about what matters. As an example, if taking an educational course is one of the most important things for you this year, choose to spend on that versus new shoes and clothes.

Day 4: Refresh your budget (or build a new one)

It’s time to build a winning budget, one that actually balances, and works. That means spending only what you make, and on the most important things. The kind of template you use is up to you. Choose something that makes sense to you (keep it simple if possible), and that you can stick to. If you have a partner, ensure they have access to it, too.

The way I teach budgeting is to hive off a portion of your income for savings and debt repayment right off the bat on payday, effectively leaving you with an amount for everything else. In other words, crafting your spending off of 80 to 90 per cent of what your take-home pay is. This idea is also known as paying yourself first, and self-made millionaires cite it as one of the leading factors in their financial success. Don’t be surprised if you have to trim spending in other areas like eating out, kids activities, streaming services and more. Once you start to see your savings grow and debt come down, you’ll be even more motivated to negotiate recurring costs and cancel spending altogether in other categories.

Day 5: Learn something more about money every week

Financial skills and confidence build as you spend time learning more about money management, and taking control. On this day, look up a few fin-fluencers to follow, a money book (or a few) you can read over the next few months, a blog or vlog, money-focused media outlets and even book an appointment with a money coach or financial adviser. These will be some of the go-to resources you can use to beef up your financial learning in 2025. 

This reset is one of the most lucrative investments you can make; it’s an investment in yourself. Let it inspire you to grow this year.

This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.