New Year’s Financial Resolutions
As we begin 2023, you’re likely thinking about New Year’s Resolutions; many of us do. The new year feels like a fresh start and a great opportunity to get your ducks in a row. Of course, the last few years have been incredibly difficult for millions of people when it comes to finances, and in the current cost of living crisis and recession, many people are worried about money and looking for ways to improve their finances.
A recent study by LucidTalk, for example, surveyed adults living in Northern Ireland, found that almost half were either worried or anxious about their money situation. Over half of those aged between 18-45 were anxious, and 33% felt angry. These figures are likely similar across the UK.
That said, it’s not always easy to set or keep New Year’s resolutions, and research shows that only one in five can keep to a resolution for one to three months, and only 2% make it the full year. Something that is a key component of maintaining one’s resolutions is ensuring that they’re realistic and manageable; for example, resolving to become a millionaire by year’s end is likely to end in a reasonable amount of disappointment.
Below we’ve outlined some of our top tips for entering the new year with good intentions and maintaining your resolutions.
Be more aware of your spending and take a spending fast
It’s easier to know where you are with your finances if you have it all laid out in front of you. If you can categorise your spending and highlight any unnecessary expenses, or bad spending habits, you’ll likely be more able to make savings.
There are a number of budgeting apps out there that can help you gain more insight into your spending habits, and these include:
- Emma – which is a good app for helping you identify any subscriptions that you don’t use and are wasteful,
- Money Dashboard – which can help you budget by planning for future goals and categorises transactions,
- Chase – which is good for earning interest and gives you a spending overview of your monthly transactions.
Another handy tip to make you more mindful of your spending is to remove your bank details for apps that tend to be a money sucker. Whether Uber Eats or Amazon, adding another layer of admin when making purchasing decisions can help you to stop and think whether or not you really want to buy something, helping to put an end to easy spending.
Confront your debt
Debt can really pull you down and be an incredibly heavy weight to carry, causing stress and anxiety and research shows that being burdened with debt can affect both your mental and physical health. It can also be a scary thing to confront, and many prefer to keep their head in the sand. However, being brave, confronting, and addressing your debt can be transformative and come as a huge relief.
It can be challenging to know where to start, though, so it’s helpful to make a clear, concise list of all that you owe and order it in terms of importance. Our Debt Consolidation Calculator can help you to create this list, and see how much it is costing you in total. Following on from this, creating a personal budget to make dealing with the debt more digestible and easier to take on. It can never hurt to reach out for independent advice as well and set up a talk with your creditors.
Try to improve your credit score
There is a raft of benefits to improving your credit score. Some of these benefits include:
- You’re more likely to be offered a lower interest rate when borrowing
- You’re more likely to get approved for credit
- You’re more likely to be offered a higher credit limit
All of the above can help you achieve some of your wider goals more quickly. So, to boost your credit score, some of the following techniques can be applied:
- Ensure that you pay on time and stay within your limits,
- Prove your creditworthiness by taking out a smaller amount of credit,
- Register to vote.
Undertake a pension health check
Right now, when finances are tight and the cost of living is high, for many people, pensions are the last thing on their minds. Many are now deciding to decrease the amount they pay into their pensions or hit the pause button on pension contributions altogether. This can be tempting, however, experts say that a move like this can be incredibly damaging in the long run and jeopardise your retirement savings.
In the New Year, it can be helpful to do a little health check with your pension and see where you are with your future savings. Through this, you’ll be able to assess past performance, if you’re hitting your goals and whether there are other better pension options on the market.
If you’re not currently saving into a private pension, it could be worth thinking about opening one. Research from Which?, for example, shows that individuals need £19,000 a year to live comfortably in retirement (£28,000 if you are a couple). Likewise, research shows that the minimum required contributions are near the 12% mark to achieve suitable funds in retirement.
Consider switching bank accounts
A study conducted back in 2020 found that nearly half of Brits (40%) stay with one bank for their entire lives. Often it can feel like too much of a palaver to switch, and many also don’t know that there are better deals. You should only stay loyal to a bank if it is serving your interests, and if there’s a bank out there with better deals and perks, why not make the switch? Last year, for example, banks were offering as much as £200 for new customers to switch their accounts.
Make sure you’re up-to-date with the latest personal finance developments
These days, it feels like everything is almost always in flux, especially when it comes to personal finances. The best way to make sure you’re prepared for any changes that may affect your finances is to keep up-to-date with all the latest.
There are upcoming changes to income tax (a freeze in April), potential council tax hikes, and the state pension and benefits are set to rise with inflation. At The Salary Calculator, we’ll help you keep your finger on the pulse with these announcements, so that you can get a better grasp on what you need to do with your money.
None of the content on this website, including blog posts, comments, or responses to user comments, is offered as financial advice. Figures used are for illustrative purposes only.
No comments yet.
Leave a comment
Categories
Tags
-
50% tax
2022
April 2010
April 2011
April 2012
budget
coronavirus
cost of living crisis
covid-19
debt
dollar
economics
Economy
election
Employed and Self Employed
Foreign Currency
foreign exchange rates
HMRC
holiday
holiday money
house prices
houses
income tax
interest rates
Jobs
Loans
Mortgages
national insurance
Pay As You Earn
pension
Pensions
personal allowance
pound
recession
recovery
savings
Self Assessment
self employed
self employment
student loans
tax rates
The Salary Calculator
unemployment
us
VAT
Sponsored Links
Archive
- November 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- November 2019
- September 2019
- April 2019
- March 2019
- December 2018
- April 2018
- March 2018
- January 2018
- May 2017
- March 2017
- February 2017
- September 2016
- June 2016
- March 2016
- February 2016
- January 2016
- June 2015
- April 2015
- March 2015
- February 2015
- January 2015
- November 2014
- October 2014
- July 2014
- June 2014
- May 2014
- March 2014
- February 2014
- January 2014
- November 2013
- October 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- October 2011
- May 2011
- April 2011
- March 2011
- January 2011
- December 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009