Like many others, you may be thinking about goals for the coming year. Keeping on top of finances is something that crops up in many people’s resolutions – and for good reason too. You might have big saving goals for an upcoming trip, or you might want to get a handle on your day-to-day spending. Either way, these tips and tricks will help you get started.
Set goals
A study by the University of Stirling found that setting goals will make you a better saver and there are several reasons for this. Setting realistic goals aligned with set periods will help keep you accountable.
For example, you may want to save a certain amount or have paid off any outstanding debts, perhaps in a bid to boost your credit score, by a particular date. Creating incentives for when you’ve achieved them can keep you motivated throughout.
Review the last year
One of the best ways to make changes going forward is to look at past habits and assess whether anything needs improving. A chunk of your outgoings might be going towards takeaways or clothes, for example.
By identifying spending areas you’re able to cut back on, you can adopt new habits going forward to refine your outgoings. On the other hand, you may reflect on an approach that worked well that you can carry forward.
Assess accounts
By taking a step back and reviewing where your money is being stored, you can assess whether your current setup is helping you optimise your savings. Many switch to a savings account with greater interest rates, allowing funds to increase more without having to lift a finger once everything is set up.
Some banks offer financial incentives to make this switch, which can give you the push to get started. As well as this, spreading out your money across different accounts can be beneficial too. By understanding the differences between current accounts, saving accounts, cash ISAs and LISAs, you can help make your money work harder.
Stay organised
Organisation is key when it comes to setting financial goals and sticking to them. To stay on top of everything, pencil in dates where you can review and update any goals you’ve set. You might decide to create a budget that you can apply monthly to help you save continuously. There are lots of online budget planners to help you get started.
Make sure you review it each month, in case you have a more demanding period with higher expenses to consider. There are lots of financial planning apps you can take advantage of to help you get into the habit of tracking your spending and get a grasp on your daily finances.
