Did someone say New Year’s resolution? Yes, it’s that time again! There’s nothing quite like a January bank balance to motivate us to save more and spend less this year. But never fear, now is the perfect time to put your money into perspective and hit the reset button.
1. Take some time to look over your accounts
Before you set your 2022 saving goals, make sure you have a clear picture of your regular outgoings and debts. You’ll feel much more confident about your financial position, how much you can realistically save and when to start. It’s a good idea to prioritise paying off any debts before you start saving.
By looking over recent bank statements you’ll be able to see where you could be overspending. If you’re shocked at how much you’re spending on food, for example, could you save money by planning meals and doing one weekly food shop? Or could you cut down on takeaways? If you notice lots of purchases from the same retailer, challenge yourself to a month of no spend there and see if that impacts your bank account.
2. Reassess subscriptions
Make a list of your monthly subscriptions to check you aren’t paying for things you aren’t using. If you started off with free or discounted trials, you might find they now cost more than you expected or you’d forgotten you’d signed up completely. If you think something offers poor value or is not being used enough, then cancel it. You can always start it up again if you decide you’re missing it.
3. Create a budget
Budgeting can sound daunting, but it can be a really simple way to stay on top of your finances and what better time to start than the New Year?
Use a spreadsheet or your Notes app to keep track of your earnings and plan known outgoing costs. Your budget should take into account your monthly income, minus your bills, subscriptions and any other essential outgoings. The amount left over needs to be enough to pay for your food, transport and day to day life.
4. Zero spend challenge
Challenge yourself to a few zero spend days a month. Set them as days when you’re not working or working from home. Simple tips such as planning your meals ahead, eating leftovers, making your coffee at home and avoiding shops can really help. See how many days a year you can go without spending a single penny! This can help you become more conscious of your regular spending, as well as saving you some extra cash for the year.
5. Have a clear out and earn some extra cash
The New Year is the perfect time to have a clear out of anything you no longer use or wear. This way, you’ll be able to declutter your home and earn a little extra cash on things you sell. Whether it’s clothes, homeware, unwanted Christmas presents, your old laptop, TV, games or books. If you think something could be useful to someone else, check the going rate for similar items and put it on a marketplace site like ebay, Facebook Marketplace or GumTree.
