Financial Resolutions for the New Year

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At some point, most of us have made a financial resolution. At the beginning of a new year, after the excess of Christmas, we’re keen to save money and get our finances back in order. Unfortunately, however, many of our New Year’s resolutions are left forgotten in January. Most don’t even make it to the end of the month. 

We often fail because our resolutions are unrealistic, or because we don’t really want to stick to them. So, instead of making random resolutions that you’ve got very little chance of sticking to, here are some financial resolutions that you see you in a much better financial situation this time next year. 

Take Control of Your Debts

It’s so easy for debts to spiral out of control. It’s just as easy to ignore them. But this is a mistake. You might think that you’ve got a hold on your debts if you aren’t at the maximum on your accounts, and you can comfortably afford the minimum payments. But, this typically means that you are wasting money paying interest, and with just minimum payments, that you will be in debt for a very long time. 

Make 2021 the year that you take control. Apply for low (or interest-free) interest consolidation loans or balance transfer cards to cut the interest that you pay, and if you can’t get these, at least increase your repayments slightly to reduce the long-term costs of your debts. 

Find Ways to Make Extra Money

One of the most significant sticking points when it comes to paying off debt or increasing savings is that you actually need to have more money to do it. So many of us live hand to mouth, or paycheck to paycheck, with very little leftover to save or pay off debt. 

Spending less is one option, but making more is another. Look for ways to earn some extra cash in 2021. This could include CFD Trading, online surveys, market research, taking a part-time job, doing odd jobs for money or starting a small home business. 

Get into Better Habits

Perhaps the easiest thing that you can do to improve your finances in the new year is getting into better habits. Become more mindful of what you are spending, and why. Start asking yourself if you really need to spend money, and get into the habit of searching for better deals and money-saving opportunities instead of spending mindlessly. 

Gain Greater Understanding of Your Finances

Many of us are guilty of ignoring our finances. We set up direct debits and forget them. Do you know if you are getting the best deals on utilities? Do you know how much interest you are paying on debts or fees on accounts? Take some time in the new year to gain a better understanding of your finances, and you’ll spot easy ways to save. 

Imagine ending 2021 debt-free, with savings in the bank, or able to spend more over the holidays without worrying about the long-term effects? Imagine ending the year proud of your achievements, and happy to check your accounts, instead of hiding from bank statements and avoiding checking your balance? With some careful planning, and perhaps a few measured risks, you could make this a reality.