Those pesky New Year's resolutions might have already gone awry after that second slice of cake and third glass of wine, but there's no reason why you can't make financial resolutions work for you all year round. Treat your finances like going on a New Year's healthy eating mission and keep the mantra 'everything in moderation' in mind. Here's how:
If you have a couple of credit cards you are paying off it's a good idea to consolidate that debt into one manageable debt consolidation loan. The loan will essentially pay off your existing debts and then you pay back the new lender. It's a good way of managing your finances smoothly, in bite size portions, with only one payment and interest rate to track a month.
Start saving. Now.
That savings account sitting there with no money in it isn't doing a thing for you, so kick start your financial resolutions by transferring just £10 or even £20 pounds in there. Little and often is the key to saving and you can add as little or as much as you like.
Keep this savings account for emergencies, such as home improvements or car repairs so you don't have to scramble for money. If you do find it a struggle to save but still find that you need money for emergencies then you can fill out a form on our website and apply for a quick and easy logbook loan that can be repaid monthly and easily incorporated into your budget. Which brings us to our next point
Now that you've consolidated your debts and started saving you'll know what money you have left in your bank account each month. This is where it is important to budget and is also a habit you can carry on easily throughout the year to help you manage your finances.
Budget on a weekly basis. After all, your monthly bills automatically leave your account and you know what you're left with. Split this money equally for the four weeks of the month and plan what it needs to be spent on. Cut out any unnecessary spending by:
- Making a packed lunch for work every day.
- Whipping up some coffee and using a flask to avoid stopping at cafes to pick up a latte on your way into work.
- Cancelling or changing your gym membership if you don't use it.
- Planning your meals for the week and only buying the ingredients you need.
- Being careful when you use the car. If you can walk do it to save petrol so you don't have to budget as much for it next week (you can either pop the spare money in a savings account or treat yourself to one of those cheeky morning coffees occasionally - everything in moderation!)
These three simple techniques will ensure you're prepared for the year ahead and that you won't break those financial resolutions you made in the New Year!