A new year is always a great time to reset and to begin setting yourself some new goals! From cutting out chocolate, to signing up to the gym - we know how easily those resolutions can be broken.
So ahead of 2022, we’ve decided to put together a list of financial New Year’s Resolutions that you can actually stick to!
Create a New Monthly Budget
Putting together a new, realistic monthly budget could be a great first step to overcoming any financial issues throughout the New Year.
Within your monthly budget, you should consider all of your income and expenses, as well as any existing debts and your savings goals. Ensure that you’re realistic with your expectations to avoid falling short at the end of the month and missing any bills. Sites such as Which can help you set up a budget to help with your finances.
A good way to find a realistic budget for your disposable income could be to work out an average of how much you’ve spent each month over the past 12 months on meals out and shopping etc. and then be strict with yourself so that you don’t exceed that amount
Set Up an Automated Savings Account
If you don’t trust yourself to remember or be willing to pay that extra bit into your savings each month, then an automated savings account could be the one for you.
Rather than having to make the decision each month of how much you’re happy to put away for savings, set up a standing order for a certain amount each month from your current account to your savings. Better still, look out for savings accounts or ISA’s where you can gain the best interest each month.
Save for a Rainy Day
Your general savings account is a luxury. It’s there for things like vacations, Christmas shopping, a new car or even for your next home. So rightly so, you’ll more than likely not want to dip into it for any rotten unexpected bills!
A rainy day savings account is the perfect way to take the pressure off should an unexpected bill come your way. This could be something like a popped tyre, or a big doctor’s bill. Whatever it is, it’s generally something that you’re not able to budget for each month and so saving just a small amount each month will be a lifesaver should the unexpected happen!
Create a Plan for Debt
If you’ve racked up some debt over the years, then paying these off this will no doubt be at the top of your financial New Year’s Resolutions list.
Nobody wants debt hanging over them for any length of time, but creating a payment plan for it will really help take the stress off.
Of course, a mortgage or student loan type of debt is completely different and you will already have a plan for those. And checking out sites like MyMoneyComparison to see if you could be saving on your existing loans. But you could begin by including paying down your credit cards into your monthly budget, focusing first of all on whichever is charging you the highest interest rate.
Consider Your Lifestyle Habits
If you’re looking to save more money going into 2022, then considering your lifestyle habits could be a great place to start!
Your financial New Year’s Resolution could be something as simple as cooking at home more rather than going for meals out, or recycling some of your old clothes rather than buying new for every occasion. List your old items on eBay and see if you can make some extra pocket money.
When you’re working out your monthly budget, a simple lifestyle change could be just what your savings account needs.
Analyse Your Bills & Subscriptions
Are you positive you’re not overpaying across any of your bills or subscriptions?
It’s so important to review your household bills for gas, water, electricity, insurance etc. frequently - so the start of a New Year could be a great place to start.
Likewise, Boxing Day and January sales are a great time to snap up a better deal on your other monthly payments and subscriptions. Wait for deals from Now TV which may beat the competition around normal sales seasons.
Review all of your expenses from Netflix to your broadband and mobile phone package. Decide which ones you need and look out for any better deals on them, and get rid of the ones you no longer need.
Create a Will
Making a Will is something you probably wouldn’t think of when choosing a New Year’s Resolution. However, creating a Will is an extremely important financial move for both you and your family.
Having a Will in place provides financial security for your family and also means you don’t have to pay more inheritance tax than you need to. You can set one up at a low cost with a financial advisor or get in touch with your local Solicitors.
Boost Your Income
Another great financial New Year’s Resolution is to look at how you could boost your income!
We know a lot of the time this is much easier said than done. But if you’ve been putting off applying for a better-paid role, completing that final exam, or even asking your boss for that pay rise you deserve - then now is the perfect time to do it.
You could also look for extra part-time work on sites such as TotalJobs to fill your spare time. Or check out local community listings for extra work such as dog walking, babysitting, or even just declutter your home and wardrobe and get selling!
Improve Your Credit Score
Having a good credit score is a huge financial bonus when it comes to applying for a mortgage, a car loan, or any other type of credit.
The best way you can improve it is to pay your bills on time. Or if you don’t already have a credit card, then you could actually consider applying for one. Using a credit card for purchases such as your weekly grocery shopping and then paying it off at the end of each month could give your credit rating a great boost! Make sure you know what your credit score is currently and keep track of it using providers such as Experian.
Shop Wisely
Last but certainly not least, shopping wisely is one of the best financial habits you can ever learn!
Try to resist the post payday splurge and consider what you need vs. what you want. A good way to do this could be to limit yourself to just a certain amount of money for shopping each month so that you can prioritise your shopping. Keep an eye out for stores such as Boohoo who regularly have sales, discounts and offers on their clothes.
And for whatever you do need to buy - always, and we repeat, always look out for discounts. Whether it’s the reduced yellow label shelf in your local supermarket or a discount code that you can use online - don’t buy anything without getting a good deal on it!
All that’s left to say now is… good luck and Happy New Year! If you need any more advice on how to prepare and save money – please don’t hesitate to get in touch.
You should also be sure to check out our other articles, too, for tonnes of money-saving advice on household bills, holidays, and more.
