Financial New Year’s resolutions
As the new year kicks off, it’s the perfect time to make those changes you’ve been avoiding. As well as joining the gym, eating salads and calling your family more often, how about making some financial resolutions?
In our European Consumer Payment Report, we found that people across Europe are worrying about their bills more than ever and financial confidence is low. While you can’t do anything about the general state of the economy, you can improve your own finances and establish habits that will see you through the good and bad times.
Here are our seven top tips for a healthy wallet in 2023
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Look at the big picture:
The first step to taking financial control is to know what you have coming in each month and how much you’re spending. Download our free budget planner to help you get to grips with your current money situation. -
Be a detective:
Examine your spending patterns and look for places where you can save money. Do you regularly spend small amounts that add up – on lunches or coffees, for example? Do you have monthly expenses for subscriptions or services you no longer use? Can you find cheaper options for your energy, telephone and television providers? -
Pay off debt:
Remember to start with the highest-interest accounts. If your debts are overwhelming, speak to your creditors or an independent advice organisation for help. You may be able to have a payment holiday, consolidate your debts or renegotiate your payment plan to get back on track. -
Be a good customer:
Boost your credit score by paying bills on time, reducing credit card balances and disputing any errors on your credit report. Showing a good track record will help you access lower cost borrowing in future should you want to take out a mortgage, for example. -
Maximise your potential:
Can you increase your income by securing a promotion, asking for a raise or doing some extra work? This will help you pay off debts and save for the future. Make sure you’re getting the right rewards for your efforts. -
Stash the cash:
If you have any extra money, start saving. Even a small amount a month will add up in the long term and saving is one of the best financial habits to master. Ideally, build an emergency fund with enough savings to cover three to six months of living expenses. -
Future proof:
Think about investing for the long term, whether through pensions or other investments. Be proactive about your financial wellbeing by reviewing your finances regularly. Reading books, taking classes or working with a financial adviser may also help you keep on top of economic trends.
