Setting a New Year’s resolution is something nearly everyone does this time of year. You give yourself a goal to achieve within the year, and it then becomes your job to make sure you do so.
Many of us will go into the new decade with big financial plans. To budget for everything, to save as much as possible for something big or even to clear those debts that you’ve been trying to pay off for years.
But how many times have you set yourself a financial resolution only to have it fail within a few weeks?
According to research conducted by the University of Minnesota, 80% of people fail their resolutions before we even hit Valentine’s day – which means bad news for your purse or wallet.
That’s why we thought we’d give you our top five money resolutions that, if you put your mind to it, will be easy to stick to and don’t involve you making dramatic changes.
So, let’s get to it!
1. Make your savings affordable
Saving money is a habit most of us need to force ourselves into, often because we’re trying to save an unaffordable amount each month. If you want to make yourself a nice little nest egg this year, then split it up into affordable amounts.
If you work out a budget, you’ll be able to then work out an affordable amount to put away each month that won’t end up leaving you short. It’s important to remember that something is better than nothing, and you can review your progress as you go with the goal of saving more as the year goes on.
2. Begin a budget
Money management is the key to your financial success. Yes, it seems like a monumental task, but if you power through then it’ll soon become second nature.
When creating your budget, it’s important to set yourself limits. That way, you’ll have rules to stick to which can help you stop overspending.
If you can, you can work to reduce your spending in certain areas by reviewing your budget every few months. It’s also important to make sure you create one that includes your spouse or anyone you live with to help make sure it’s accurate.
3. Get in the know
One of the most valuable things you can give yourself is the power of knowledge. The more you know, the better you’ll be able to manage your money.
Set yourself the goal of reading or researching at least one financial matter that will allow you to get a better understanding. You can do this either physically with books/magazines or by finding the information online.
4. Roll with the pension punches
Everyone who’s employed will have been automatically opted in to a workplace pension scheme at one point. This allows a percentage of your salary to be put aside each time you are paid to help you prepare for your retirement.
In recent years the contribution percentage has sat at 5%, but as of April this year (2019) it was upped to 8%.
This is optional, and for some, it can be tempting to opt-out of this to give yourself more cash each month. However, by making the resolution to stick with your automatic enrolment in the pension scheme, you’ll be preparing yourself for the future and helping yourself to get a comfy retirement.
5. Cash monies
These days, hardly anyone carries cash on them; what with most places now accepting card payments and the wonder that is contactless payments. However, this can be a recipe for disastrous overspending that can often leave people short by the time the end of the month rolls by.
It’s been documented that the use of physical cash actually registers more in our brains than using your debit card. So why not make a resolution to use more cash to help make it easier to keep track of your money and avoid overspending.
In the end, the key to our advice is not to go too heavy with your resolutions. The new decade can be a chance to reinvent yourself, but it’s important to make your goals small and realistic – that way you have more chance of success.
