With 2023 officially underway people across Scotland are pledging to make positive changes in the year ahead.
Research by Finder shows that Scots are amongst the 30 million people in the UK that will make a new year’s resolution.
Despite grumblings of the new year, new me concept becoming tiresome for many, 58% of the population plan to make a difference this year – up 4% on 2022 figures.
As always improving health and wellbeing continue to top the list of popular resolutions (28%), however, 27% of people plan to improve their financial circumstances.
With that in mind, we’re sharing five financial resolutions that could make 2023 your best year yet.
1. Set your budget
If your plan is to improve your financial situation you need to know exactly what you’re spending and what you’re spending it on.
Creating a budget is a simple way of helping you map out your expenses and ensuring your spending is inline with income.
No matter whether you like to manage your cash flow on a weekly or monthly basis, having a budget in place will help create financial stability.
Having a plan will make it easier to manage day-to-day finances, pay bills on time, save for big expenses and have an emergency fund.
Budgeting doesn’t need to be complicated.
Start by listing essential payments, such as rent, council tax or utility bills. You should then take a note of your variable monthly spending – like food or clothing costs – as well as how much you tend to spend each day.
Having this information handy allows you to allocate your wages or benefit payments accordingly.
Unsure about how much you spend? Review old bank statements to make sure you don’t miss anything.
2. Review your outgoings
When was the last time you looked through your regular standing orders and direct debits?
Once you have created your budget it’s a good idea to review any regular, automatic, payments from your bank account. This will allow you to cut down on unnecessary spending.
Look out for things like unused gym memberships, forgotten subscriptions and even outdated insurance payments and cancel where you can.
3. Make your goals a reality
Setting a new year goal can go beyond just learning a new language or mastering a new recipe.
The new year offers the opportunity for us to think about what we really want and how we get it.
Saving money is often one of the most popular resolutions in the UK but it’s important to know what you’re saving for.
Having a plan and money milestones to hit throughout the year will help you stay accountable. It will also mean you can celebrate your achievements along the way.
No matter whether you’re saving for a house deposit or something essential like a new washing machine, make sure you set yourself realistic but specific targets.
It could be something as simple as putting away £10 per week or something bigger like planning to save £500 by the summer.
Put simply, having a plan in place will make it easier to achieve.
4. File your tax return early
The online tax return deadline for earnings in 2021-22 is January 31.
While that still gives business owners and self-employed workers a month to get their finances in order, it’s always best to file your tax return early if possible.
As well as being the deadline for online returns, January 31 is also the deadline to pay your tax bill. If you’re self-employed it’s also the day you’ll make your first payment on account and a balancing payment if tax is still owed on previous income.
Taking care of your tax return now can help you avoid fees and penalties. It could also speed up any payments due from HMRC for any overpaid tax.
5. Deal with your debt
It’s no secret that the festive period leaves many people stretched financially.
Christmas spending and being paid early can leave a financial hangover come January at the best of times. However, when you take the current cost of living crisis into consideration money is tighter than ever before.
If you’re struggling with debt, it’s important to be aware of the help and support available.
You may consider transferring low levels of credit card debt to a 0% interest card if possible. Alternatively if you’re struggling with high levels of debt to several companies, you may be interested in a debt solution.
Solutions like a Trust Deed or the Debt Arrangement Scheme can help consolidate several debts into one affordable monthly payment and freeze interest.
If you’re worried, it’s important to seek professional advice to find the best solution for your needs.
Carrington Dean is Scotland’s debt specialist and has helped more than 45,000 Scots manage their debt. If you’re concerned about your debt, talk to an expert today.
