As we enter the new year, it is the perfect time to reassess our financial habits. According to Shannon McLay, the CEO of The Financial Gym, there is one spending habit we should all consider breaking in 2025: using easy payment apps that allow us to make purchases with a simple tap of the finger.

Why should we break the habit of easy spending?

McLay, a proponent of conscious spending and saving, says that if we are willing to put in the effort to earn, then it should be equally difficult to spend.  "I always say we work really hard for every dollar that we make, so we need to make it hard to spend those dollars because it’s hard to get it in the bank," she explained to TheStreet.

With easy payment apps on the rise, though, it's become far too easy to mindlessly spend. Many of us use credit cards on these apps, not fully realizing where our money is going. 

McLay says that financial experts frequently hear from clients who have "no idea" where their money is disappearing, with many reporting that "they make it and then it’s gone."

Is financial anxiety holding you back?

Mindful spending sounds simple, but it can be a source of anxiety for many. “We see people who look to us very financially healthy and are feeling anxiety,” McLay said. The avoidance of financial matters is common when anxiety arises, which can lead people to overlook where their money is actually going. In fact, a study last year found that 73% of Americans feel stressed about their finances.

McLay suggests that the first step in regaining control of your finances is becoming aware of where your money is going, even though it may be uncomfortable whether it’s using an app to track your expenses or just jotting them down in the Notes app on your phone, paying attention is crucial. "That process of paying attention where your money is going is really a good first step," she advises.

“Loud budgeting” among Gen Z

With mindfulness in spending, Gen Z has also popularized a new kind of financial trend: "loud budgeting." 

Loud budgeting is all about openness and transparency of one's finances without any element of shame or guilt. Financial expert Julie O'Brien from U.S. Bank said, "healthy management of their money more than consumption and the curated, unrealistic ideals they see portrayed."

It's refreshing to be moving away from this silence surrounding talking about money, helping people accept their financial reality without fear and or embarrassment.

So, as we begin 2025, it is time to take a closer look at how we manage our money. Whether it's deleting those easy payment apps or simply paying attention to our spending habits, McLay's advice can help us make better, more informed financial decisions. 

Embracing the principles of mindfulness and transparency can lead to greater financial health and less stress, setting the stage for a more secure and financially balanced year ahead.