Setting Financial Goals for a New Year of Saving
After the expense and indulgence of the festive season, many of us resolve to sort out our finances in January. We all like to enter the New Year with a flurry of enthusiasm, but more often than not, all those best laid plans have fallen by the wayside before the first blossom of spring. However, there is no need to be disillusioned - it may feel like you have a mountain to climb, but with a few simple changes, taking control of your finances is one New Year's resolution that can soon become a 2013 reality.
Keep your balance Look to make savings on outstanding credit card debt by investigating balance transfers. This can be a great way to consolidate debts and get your finances under control. Finding the right balance transfer deal can also give you a break from high interest rates for a set period. With one simple monthly repayment to make, there is less chance of forgetting a bill, meaning less chance of nasty charges.
Plan ahead It sounds simple, but how many of us really plan what we need to finance in the near future? If you feel like you get an unwelcome surprise in the form of bills or payments more often than not, then you need to make a payment calendar. You may have your monthly bills sorted out, but don't forget those sneaky road tax bills, birthdays, weddings or school trips...they soon add up. Keep a separate financial calendar for the bills and events that are going to make a dent in your budget and plan accordingly. In addition if you have any life changes on the horizon this year, like planning for the arrival of a baby - ensure you take a step back and think finance!
Go back to basics Debit cards are great for convenience, but it can become easy to forget what you're spending when you don’t have to keep track of the cash in your wallet. Withdraw enough money to cover your budget for the week and leave the card at home. You'll be amazed at how you think twice about all those little purchases when it comes to handing over the cash. Alternatively, consider managing your spending with a credit card – setting yourself a monthly budget and sticking to it, whilst each month clearing your balance in full.
Utilise technology Make sure everything is running smoothly with your finances by setting up direct debits for all your payments. Once you know what date all your bills will debit from your account, you can set up a spread sheet detailing exactly what expenses are deducting from your bank, and when. Many companies also offer discounts to customers who pay by direct debit, as it saves on paper and admin time. Another clever way to utilise technology is to download a financial planning app for your smartphone or tablet. With a huge variety on the market, you are sure to find one to suit your needs, allowing you to carry your budget plan with you in your pocket.
Plan for a rainy day Sometimes it can be hard to save, but even setting aside as little as ÂŁ20 a month can help put a dent into paying off a holiday or next year's Christmas spend. Set up a standing order to transfer an arranged amount into your savings account every month and you'll probably find you don't even notice the difference.
Shop around for the best deals and put the money you would have usually spent into savings - it'll soon add up. Great money-saving tips and deals are available online for everything from eating out to cosmetics, clothes, family and even spa treatments for when you want to reward yourself with a little treat.
Image: Hugh Chevallier