Money resolutions for the New Year

The New Year is the perfect time to think about financial resolutions. Perhaps you want to create a budget, or pay off a debt, or maybe you want to establish a savings habit.

If you’re not sure, here are some ideas:

  1. Set a savings target – perhaps try a savings challenge such as the Penny Savings Challenge. Simply save 1p on January 1st, 2p on January 2nd, and so on. This method means that January is very easy and saving becomes more difficult as the year goes on – but you can always add more in advance. This method will bring in £667.95 by the end of the year.
  2. Pick a debt to repay – if you have debts, paying them off can seem daunting, but if you pick one and make it your priority, it’s much more manageable. Throw all your spare money at it and not only will you get a sense of achievement when it is cleared, you will have more money spare to tackle your other debts.
  3. Save for something in particular – having an end goal in mind, such as a holiday or a house deposit, makes it more likely that you will achieve your goal. Try putting up a picture that represents your goal somewhere you can see it easily, so that you are continually inspired.
  4. Make a budget so you can start planning where your money goes – try these tips to help you. The 50/30/20 rule is a good one to live by.
  5. Take part in a money-saving challenge: perhaps you want to buy fewer clothes, or try to be more sustainable in your lifestyle choices? Following a challenge with others can make you more likely to stick to it.

These are just some ideas of things you could do to help establish better financial habits in the New Year. Can you think of any others?

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