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Home > Blog > 10 New Year’s resolutions to rein in your spending
Jan 14, 2018
10 New Year’s resolutions to rein in your spending

2014New Year’s Eve has come and gone, and with the New Year comes a slew of New Year’s resolutions. Weight loss always steals the resolution spotlight, but saving money definitely takes the cake. Unfortunately, like weight loss, Britons looking to save money in the new fiscal year often do quite well in the early months, only to find themselves giving in to old habits and patterns by the time Easter comes around, if not sooner. Here are 10 New Year’s resolutions to help you reign in your spending and ring in 2017 with a fatter pocket.

1. Set Realistic Goals

You will never be able to achieve financial stability if you set lofty goals that are impossible to reach in the near future. If you only make £1,500 a month, you cannot expect yourself to be able to save £500 a month, or pay off £10,000 in credit card debt before summer. The fact of the matter is you have a family to support and bills to pay. Therefore, you need to set realistic savings goals in order to avoid failure and set yourself up for success.

2. Create a Budget

Writing down your goals is the best way to reel in your spending and reach your savings goals. By creating a budget and writing it down, you will have a physical reference of your goals to look at for inspiration and a reminder of what you hope to achieve. Many times, simply having a written budget as a tangible object can help you reach your goals.

3. Just Say “No”

Being a “yes” person and constantly giving in to every single social invitation is a terrific way to watch your bank account go into the red. While no one wants to always sit at home by themselves while others are out and about having a good time, you don’t have to say yes to every single invitation either. By saying “no” to a night out every now and again, you’ll find yourself adding a few extra pounds to your savings each and every month.

4. Put the Credit Cards Away

The easiest way to dig yourself into a financial hole is to use credit cards and spend money you don’t have. Before long, you’ll end up with steep monthly payments you simply can’t afford. If you really want to save money and get rid of your debt, put away the credit cards once and for all. Whether you hide them or cut them up, do whatever it takes to reign in your spending.

5. Avoid Opening New Lines of Credit

A new line of credit will provide you with a quick influx of money, but it will also result in a new monthly payment, which is exactly what you should be trying to avoid. Although having access to an immediate source of funds may seem tempting, you will be more tempted to use it, only hindering your New Year’s financial resolutions.

6. Open a Savings Account

No matter how determined you are to watch your current account grow, you will be more inclined to save money if you have a savings account as well. Therefore, if you truly want to save money in 2018, open a savings account with an automatic transfer feature, which will let you automatically transfer a certain amount from your current account to your savings account each month on a date of your choosing. You will also be able to earn interest on your money. This one action alone will help you greatly in reaching your financial goals.

7. Eat Out Less

Eating out several days a week can wreak havoc on your budget. If you want to strengthen your finances by getting out of debt and saving more money, it’s wise to only eat out once a week at most or on special occasions.

8. Examine Your Shopping Lists

If you always buy name brand food and products, you are likely throwing away hundreds of pounds each year. To remedy this, focus on quality and not simply the name of a brand. There are many discount food and retail stores that provide quality products at much lower prices.

9. Consider Your Means of Transportation

Although you shouldn’t go shopping for a new fuel-efficient auto to help you reach your financial goals, it may be worthwhile getting rid of an extra vehicle or taking alternative means of transportation more frequently. If you are able to go without a car and regularly ride a bike or take public transportation, you can save hundreds each month on petrol and insurance.

10. Have Fewer “Special Occasions”

An easy way to kiss your savings goodbye is to treat every weekend like a special occasion. Instead of regularly treating yourself to expensive nights out on the town, save for a night out every now and then. Not only will this help you reign in your spending, but you will enjoy yourself much more as well.

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