8th January 2016
The New Year marks a time when many make resolutions about their health, their habits and their relationships but this year try and make some financial resolutions to keep you on track for 2016.
New Year is a chance to recap and make a fresh start which many love and others loathe. Try to use this time at the start of the year to take stock of the year before and plan for the year ahead. There is actually evidence that suggests that there are benefits to making resolutions especially when it comes to your finances. Fidelity carried out a survey at the close of 2015 that showed strong results amongst people in the US. It showed that over half the American people who vowed to improve their finances in 2015 came back to say they ended the year in better shape than when they started. On the other hand, only around one third of people who had not made resolutions reported the same improvement.
To mark the New Year, news and journalism site TIME, conducted a survey of their own financial reporting team to see what resolutions they were making for themselves and what they were recommending or their readers. The overall goals are to save more, spend less and not have to worry about the smaller things. They have a few tips on how to achieve those goals.
Don’t keep them quiet – A lot of people say to share your resolutions with those around you be they friends, family or colleagues. Not only does that make them stick in your own head but it will stick in the heads of others. So, even if you start to slip on some of your resolutions, those around you will remind you which can be motivating. If not, the guilt may just give you the push you need!
Be more conscious – This one sounds simple but it is important to know where your money is going. One respondent said she always asks herself two questions when it comes to spending. Firstly, are you spending too much time thinking about the money in question? For example, is it worth spending twenty minutes fretting over spending a few pounds on a latte? Secondly, ask yourself if you would regret the purchase in the long run and if it would impact your medium and long term goals. This one is for those slightly bigger splurges that you may need to reconsider.
Avoid temptation – It is easy to be drawn in by the latest hot offers and deals online so it may be wise to unsubscribe from mailing lists for online and high street stores. This is sure to stop you browsing online and wasting both time and money. By clearing out your inbox you avoid the onslaught of emails and hopefully stay focussed.