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It’s the start of a new year, and people around the world are looking for a fresh start, especially in the financial department. Getting out of debt doesn’t mean completely freezing your spending, however. You’ll still need to make purchases like groceries, as well as pay for things like rent, insurance, and utilities. Building good credit is about spending your money in smart ways. Let’s take a look at a few tips to help you spend money in a beneficial way in 2012:

• Write out a monthly budget.

You can’t spend money smartly if you don’t know how much you have to spend. One crucial mistake that lots of people make is paying for things as needed without any thought to a budget. Once you crunch numbers, though, you might be surprised to find out just how much you’re overspending. Sit down and figure out how much comes into your household every month versus how much goes out in pre-set bills, like your mortgage and car payments. The money left over is what you’re able to spend on groceries, clothing, gas, and entertainment. When that money is gone, stop spending or else you’ll be accumulating debt on credit cards.

• Pay with cash.

Credit and debit cards make spending seem a lot easier. Just swipe your card and move on to the next store. When you actually have to see cash exchange hands, however, it is much easier to get a grasp on spending. Let’s say you have $100 extra to spend every week. Put that amount of cash in your wallet and when it’s gone, it’s gone. It’s a lot easier to see how you’re spending when you deal with cash.

• Refinance for better rates.

In some cases, refinancing might make sense. This is most common with mortgages, but student loans, business loans, and other types of loans can all be refinanced. Refinancing doesn’t come without cost, so it doesn’t make sense for everyone. However, if you have better credit and the market in your area is more favorable than when you originally got the loan, refinancing for a lower interest rate might make sense.

• Use your credit cards.

Believe it or not, it can actually be beneficial to use your credit cards occasionally. The key is to make sure that you always pay them off at the end of the month, before incurring any interest. One skipped payment can damage your credit and carrying a balance can easily snowball. So use your credit cards, but use them wisely. If you pay every month on time, you’ll raise your credit score, but if you aren’t careful, your spending can get out of control in a hurry.

• Make budgeting a family activity.

Lastly, make sure everyone in the family is on board with smart spending in 2012. You and your spouse can damage one another’s credit scores if you aren’t both careful about spending, and shopping trips that aren’t discussed can totally blow your entire monthly budget. Even the kids can get involved. Teach kids about the power of saving by opening a savings account with some of their holiday money, and make sure they earn their allowances or any money for special activities or items. When the entire family learns to budget, it’s easier to get out of debt.

Allison writes about improving your credit score, personal finance, and more with CreditScore.net.