Financial Tips for the New Year

January is often a time to think about things that we’d like to change or improve in our lives. Many of our New Year’s resolutions focus on saving money, clearing debt, improving our credit score or otherwise improving our financial situation. Unfortunately, many of us make huge goals, such as saving a large amount, which aren’t realistic. We quickly realise that we won’t succeed, we lose motivation, and we end up in a worse state than we started. This is a shame, because, actually, making smaller, more manageable goals can give us more motivation and be more successful when it comes to improving our finances and making long term changes to our financial situation. Here are some tips to help you manage your finances in the New Year. 

What Are You Saving For?

It’s always a good idea to have some goals in mind. Knowing what you are saving for, whether it’s a house, clearing debts or giving yourself more Car Finance options, can help you to stay motivated and on track. You might even want to stick some pictures up at home to remind yourself of what you are working towards. 

Set Realistic Goals

Those big goals are great, and it’s always a good idea to know what you are aiming for. But, it’s not always easy, and while chipping away is effective, it can feel as though you aren’t getting anywhere or your targets or insurmountable. Breaking it down into small, realistic targets, perhaps a weekly savings goal, or spending limit, can help to keep you on track and offer motivation. 

Break It Down

You might find that breaking it down even further helps, as could giving yourself comparisons. If you want to save £10 per week, what do you currently spend £10 on? Could you take a packed lunch to work instead of buying lunch every day? Could you walk short journeys instead of driving? Could you skip that coffee shop drink?

Ditch Loyalty - Move Your Money

Many of us have had our bank accounts for years. We stick with them because it’s easy, or because we have debts and so don’t think that we have any way out. Chances are, however, that your bank isn’t giving you the best deal. High-interest savings or low-interest borrowing is often offered to new customers, and loyalty is rarely rewarded. So ditch them and move somewhere else. Even if you have debt, you might be able to move it with balance transfer cards. 

Spend Mindfully

Living mindfully is a great way to make positive changes to all areas of life and spending is no different. If you go around spending without thinking, or even without checking that you can afford it, you are taking risks with your finances. Start being more mindful by learning more about your money. Take control of your finances. Know what disposable income you have available and how expenses will affect your finances. Then, before you spend, ask yourself if you can afford it, if you need it, and if it is worth it.

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