We are edging ever closer to the New Year, which means it’s time for us to reflect on the year that has passed so that we can develop ourselves in the future.
Whether you’re the kind of person that makes resolutions around this time of year or not, you probably have some goals or aspirations that you’d like to achieve. If not, then why not start thinking of some?
The New Year is a great time to set some realistic financial goals that will put you in a better position to achieve your larger life goals. Here are our top 6 financial New Year’s resolutions:
After feasting over Christmas, a lot of people will be making the resolution to lose weight. But it’s not all about your waistline, it is also a great time to reduce the weight of any unpaid debts that might be hanging over you.
The average total debt per UK household was at a shocking £59,540 in March 2019.
To begin, review all of your debts, find out how much interest you are paying on each and tackle the debts with the highest interest first.
Exercise restraint…Start by reviewing your spending, is there any unnecessary expenditure? Do you have any forgotten or unused subscriptions? Once you’ve cut these down, then calculate your fixed expenses and add in any other needs, such as petrol, food and leisure. Decide on a feasible amount for weekly expenses and challenge yourself to stay within that budget.
Here is a useful, free budget planner that will allow you to monitor your household spending and help you take control of your money.
Become more organised
Get on track with your retirement savings by making sure that your pensions and investments are set to fulfil your retirement lifestyle expectations. If you missed our post on the UK Retirement Living Standards – which give you an idea of how much you will need to save – then you can read it here.
Invest in you
Boost your cash savings by building a rainy-day fund for unplanned expenditures or in case you are unable to work for an extended period. It’s generally thought that you should always have between three and six-months income set aside.
Don’t forget to review your insurance and protection requirements. It’s important to ensure that you will remain financially secure if you are unable to work due to an accident or sickness.
Contingency planning is a crucial part of the financial planning process and is often overlooked by many people.
Enjoy life more
Make your money work better for you so that you have the freedom to treat yourself more. Investing is a great way to grow your financial independence and put your money to good use. Financial planning gives you the chance to be ambitious with your investments. And when you do well with your money, it opens more doors in your life.
Keeping on track
The key to sticking to your financial resolutions is to identify realistic goals and track your progress throughout the year. Having a financial plan in place, and reviewing it at least annually, will help maintain your financial security as your circumstances change.
We’ve all experienced going into the new year feeling ambitious and motivated to work towards whatever resolutions we may have made, only to forget or abandon them the next minute. After all, we’re only human and often life has a habit of creating unexpected obstacles that make it harder for us to prioritise these goals.
However, working with a financial planner will make sure that your financial New Year’s resolutions are never forgotten. They will use their expertise to create a plan perfectly suited to your needs and then commit to making sure your plan stays on track so that you don’t need to worry about it.
If you would like help with your financial New Year’s resolutions, then please get in touch with us, the initial meeting is always free.
From the team at Balance: Wealth Planning, we would like to wish you all a very Happy New Year!