The New Year is a great time to put a plan together and overhaul your life for the better – especially financial resolutions that can help you get closer to your money goals. Here’s 5 financial resolutions to make for the New Year.
1. Set some clear goals. Do you have debts that you want to reduce or completely pay off? Do you want to save for a down payment on a house? Do you want to improve your credit score?
Whatever your goal is, you should be as clear and concise as possible. It’s not enough to say “I want to have more money in my savings account”. Your resolution should be something you can actually achieve, such as “I want to save £100 a month and have £1,200 in my savings account by the end of the year”.
2. Prioritise your debts. Managing your debts can sometimes seem like a mammoth task, but putting in some work to achieve a positive will result will leave you financially better off in the future. Make a list of all your creditors and outstanding balances, work out your monthly salary for 2018 and set a budget each month that prioritises paying off these outstanding balances over things like entertainment, eating out etc. You can also get free and impartial debt advice from StepChange.
3. Open an Individual Savings Account (ISA). If you’re serious about making long term savings, an Individual Savings Account (ISA) is a great way to save. You can save up to £20,000 tax-free in 2018 and you can easily create an account through your bank or building society.
4. Start the penny saving challenge. Did you know you can save over £650 in a year with the penny saving challenge? The idea is that you save an increasing amount each day until the end of the year. You start at £0.01 on day 1, £0.02 on day 2, £0.03 on day 3… all the way up to £3.65 on day 365. By the end of the year you’ll have £667.95!
You could easily do this with online banking or you can use actual coins in a jar, which is much more visually impressive!
5. Get a budgeting app. Managing your finances in 2018 doesn’t have to be difficult – there’s thousands of online banking and budgeting apps out there that can ease the burden. These apps have evolved to now act as your personal financial assistant. Cleo for example can spot your spending habits and automatically put what it thinks you can save into your savings account.