As 2016 is just around the corner, many people are starting to look at making resolutions with regards to their lifestyle and finances for the coming year.
Many people make vague resolutions that they may or may not fully commit themselves to, such as simply “I will save more money this year”. While this is a good overall goal to set yourself, it’s especially important with financial resolutions to set yourself targets that you know that you will be able to stick at and achieve.
As independent financial advisors in Lancaster, we’ve put together a short list of resolutions to inspire you to take more care with your finances in 2016 that can be achieved.
Find a Budgeting Plan to Suit You
Not every budget plan will be suitable for your financial needs, so it’s important to find one that fits your spending habits and attitude towards spending and saving.
Try not to budget everything at once, especially if you are finding it difficult to keep track of your current expenses. Focus on one key area where you would like to cut your expenses and stick to one budgeting method which works for you; whether this is using a computer or an old fashioned pen and paper to monitor your finances, make sure you are willing to stick to it.
Good places to start are cutting your phone bill down by switching to a cheaper plan, or finding cheaper places to do your weekly shop.
Set a Realistic Target
Try to be as specific as you can when setting yourself a savings goal, but remember to be realistic. There’s nothing more discouraging than reaching the end of another year and not quite meeting the goal you expected.
Saying “I want to save ____ amount of money this year” will give you a set amount to work towards and allow you to see how far you have to go throughout the course of the year. Exceeding your savings goal is much more fulfilling than falling short.
It’s also advisable to decide where you will place any money that you come into unexpectedly. Anything from money given as birthday gifts to a bonus from work should be factored into your savings plan to maximise your chances of reaching your savings goal while still supporting you financially throughout the year.
Pay Off Your Highest Interest Debt
If you have found yourself constantly repaying a debt which never seems to end, make sure that you are making that debt the main priority.
The sooner that you pay off the higher interest debts, the sooner you can get back on track to freeing up some of your money to help you with other life essentials such as bills and food. Put as much money as you can afford towards the debt and get it paid off.
However, it’s important to remember not to spend all the extra money that you gain from paying off the debt all at once. Enforce the 30 day rule for large, costly purchases- if you still want it after those 30 days are up, then you won’t feel as guilty for investing your money.
If you are struggling to get on top of your finances and don’t know where to turn, don’t hesitate to get in touch with us here at Burton and Fisher. Our staff are experts in providing confidential, friendly financial advice and are available to help you, no matter what time of year it is.