Is the new year making you think about getting your finances in order? Are you feeling inspired to save for your new year’s goals?

We have some top tips to help you plan for the future and save towards your 2022 dream.

Monthly financial spreadsheet:

The first step is knowing your personal cash flow and outgoings for each month, by working out these figures you can begin to assess your finances and work out a saving plan that works for you. Making a spreadsheet showing all your monthly expenses such as utilities, rent, weekly shops and an allowance for personal activities can show you what is left from monthly wages. Using this you can then decide upon a percentage of your disposable income you are able to save in a separate savings account. By saving in another account the money is separate and shows clearly what can be spent, allowing you to then budget for the month.

Bills and subscriptions:

Often, we set up lots of direct debits over many years and forget what money is going out of our accounts. Going through your direct debits is important to do regularly. Keeping on top of these will help you save money and evaluate what money you are spending and decide if they are all crucial or if there are cutbacks that could be made all counting towards your saving goals.

Alongside this, bills can often be reduced by checking if there are beneficial or more cost-effective deals out there within the supplier you currently use or checking the market to see what offers you could be accessing. Many companies have deals and prices that can be negotiated specifically for subscriptions. Speaking to suppliers and companies to talk through your personal situations can give you an idea of what they can offer, alongside carrying out online research and shopping around to find the deals and can save you more money.

Direct debit for credit cards:

Setting up a direct debit to pay off your credit card is a great way to avoid missed payments and incur additional charges. This is also important to your credit score- having a good credit score can affect your ability to access certain products such as loans and impact on your ability to borrow money.

‘No spend days’:

It can be hard to find days where you don’t spend any money but even 1 or 2 a month could make a big difference. Taking small steps can lead to larger changes in the long run. It can be as simple as no online shopping, making your lunch over buying it and staying in for the night rather than a diner out. These days often take prior planning and need to be days that fit into your month.

 

Spending limits:

 

To help you keep on track of your spending you can often set limits on both debit and credit cards. By having these set they can stop you spending more than you have budgeted for and be a back up to support your saving. By setting these limits they can encourage you to assess daily spend expenditures prior to the month ahead. Lots of banks do allow you to do this but you would have to investigate and speak to your bank regarding this.

 

Any steps to save, big or small can make a difference in the long run. Start your new year right and make the changes you feel able too today.