04 January 2023
New Year’s Resolutions for your Money
Traditionally, the beginning of a New Year is a time for reflection for many, not least of all when it comes to saving money. Unfortunately, a large proportion of people don’t stick to these goals, so it’s important, especially when it comes to finances, to set attainable and achievable goals so that you stick to them.
Here are some of the most popular financial New year’s Resolutions and most importantly, how to keep them.
Save More (Or Start Saving)
The most popular financial goal is for people to save more and, whilst it seems easy and straightforward on paper, the current cost of living crisis has made it harder than ever to put money aside every month. But if anything, this is even more reason to do so, as things get harder monetary wise, having money aside could end up being a life saver.
The best way to save is to set up a specific account and set up a direct debit every month or have it come straight out of your salary – treating it like an extra bill will mean you stop thinking about it and when you do eventually remember, you amy be surprised at how much you’ve saved! It also doesn’t need to be a lot – even £10 a month is better than nothing – it’s still £120 by the end of the year!
Smart Money Cymru have our own saving’s accounts for this reason! Be it for next Christmas so you needn’t worry about that spend next Christmas, savings’ accounts for children or just general accounts for you to begin your New Year’s resolution.
The benefit of saving with Smart Money Cymru also means that as a member, you will be provided with a dividend at a better interest rate than savings accounts of high street banks!
Make a Budget
Whilst this may seem like a tedious task to begin with, creating a budget in many ways is the first step towards saving money. It will also help you take charge of your finances and spending, helping you feel more confident about your money. This is easy to do, and only requires you to sit down for an hour or two and really consider what you spend your money on – do you really need to buy lunch out every day? Or maybe you have a bad habit or two that’s costing you money that you could ALSO put aside as a resolution? Decide how much money you will set aside every week for different things, even dividing into wants and needs – food, bills, subscriptions, everything you spend money on regularly.
Improve your Credit Score
Here at Smart Money Cymru, we are all for helping those with lower credit scores get back on the ladder, especially if you aren’t a high earner and often rely on borrowing to get by. We believe in getting you out of that vicious cycle – be it taking out a consolidation loan with us, or a credit builder loan. Taking out small loans and proving you can pay them back can help get you out of debt and build up your credit score. You can also do so by paying bills back on time and in full, and limiting how much you spend – once again, that budget will come in mighty handy for this. Check you credit score often too, regularly even – as keeping track of your credit score will prevent you from losing track of it and also, may even help you figure out why it’s going up, or down…
Give up Credit Cards
Now whilst credit cards aren’t inherently bad, we recommend taking out loans for money when you NEED it instead – so if you have a last minute vet bill for example, taking out a flexible loan with us for when you need the money rather than splashing out on a credit card is not only more disciplined, but will mean that you only take out what you need when you need it.
Paying off a loan will also help increase your credit score by paying it off every month in a way you can afford to do, rather than landing yourself in an unpayable hole.
Now although we’ve listed a few resolutions for 2023, you by no means have to tackle them all. Becoming financially confident is a long journey, and not one that can be done overnight. In fact, we recommend just picking one main financial resolution that you want to set for yourself this year.
Be clear and concise about what you want to accomplish and set up a solid plan for how you will get it done, as if you try to take on too many resolutions, you could become overwhelmed and abandon your plans altogether.
Only after you have made steady progress and feel more confident about your finances should you consider adding a second financial resolution or make a new one next year!
If you ever need help on your new financial journey this year, Smart Money Cymru are here to help, get in touch to discuss savings with us, or ways that you can make a change and become money smart too!