NEW YEAR MONEY RESOLUTIONS YOU CAN ACTUALLY KEEP

It’s that time of year again when many of us start thinking about changes we’re going to make in the months ahead. While many people set unrealistic goals that are broken within days, there is a lot to be said to working towards realistic targets. If you’re looking to take control of your finances, tackle debts, or boost your balances in 2020, here are some money-saving resolutions you can actually keep.

Effective Ways to Spend Less

One of the best ways to increase the margin between the amount you earn and your disposable income is to take steps to curb your spending. If you’re guilty of splashing out on things you don’t really need, or you think you’re paying too much for services and household expenses, there are several ways to save. Here are some of the most effective ways to spend less:

Create a Shopping List

Many of us get carried away when we go to the supermarket, and before we know it, we’ve got a trolley full of non-essential items. Shops are designed to encourage consumers to spend, and the offers and deals are supposed to be too good to resist.

If you’re susceptible to marketing ploys, or you get drawn in easily, make a list at the start of every week and buy only what is on it, or do your shop online. To save money on food, it’s also a great idea to buy frozen products, to look for discounts on the items that are on your list and to shop around for the best deals on products like pet food, toiletries and supplies for babies and toddlers.

Planning a menu and batch cooking can also save on the cost of groceries at the same time as ensuring you have nutritious, tasty meals every night.

Take Your Lunch to Work

If you spend a few pounds on your lunch, you might not think that this will make a massive difference to your bank balance. While this might be true for the occasional trip to a high street cafe or coffee shop, if you buy lunch every day, that equates to a huge amount of money.

You could save hundreds, even thousands of pounds every year by swapping shop-bought sandwiches, wraps and salads for homemade lunches you can take to work with you. It takes a minute to make a sandwich or rustle up a pasta salad, and you can do it the night before if you’re not a morning person.

You can also make your salary stretch further by replacing a morning or afternoon coffee or caramel latte with a cup of instant coffee made at the office.

Cut the Price of Your Commute

How do you get to work each day? If you spend a fortune on petrol, or you’re forking out for trains or buses, look into cheaper ways of getting around. It may be possible to share lifts with colleagues or to ask your boss about working from home more frequently, and you might be able to save by buying a travel pass or a season ticket. If you’re lucky enough to have a very short commute, you could consider walking, jogging or cycling.

Shop Around for Services

Do you dread your energy bill arriving, or do you feel like paying over the odds for car insurance or broadband? If so, take a few minutes to use the Internet to compare prices and try and find better offers. You can compare fees for everything from mobile phone contracts and TV packages to pet, car and life insurance and gas and electricity.

If you’ve got policies that are due to end soon, it’s particularly beneficial to explore your options, as new customers often have access to incentives and discounts. You might find that by switching provider, you get a lot more for your money or that your premium costs a lot less.

Socialising on a Shoestring

Many of us spend a substantial amount of money on going out with friends, dining out, going to the cinema and enjoying days out. There’s nothing wrong with being sociable and wanting to spend time with friends and family, but the cost can soon add up.

If you’re trying to budget and reduce spending, consider cheaper ways of getting together, for example, hosting dinner parties at home instead of going to a restaurant or going to the park for the day instead of a theme park.

Simple Ways to Increase Your Savings Balance

As well as reducing the amount of money you spend, you can also take steps to save more. One of the best ways to do this is budgeting. If you don’t already use budgeting apps or spreadsheets to keep track of your finances, this is a resolution that will definitely benefit you.

Budgeting is very simple, and it can make a massive difference to your bank balances. Note down how much you earn and then how much you plan to spend in the month or week ahead. Include recurring costs, for example, your mortgage, rent and household bills, as well as one-off payments, for example, a holiday or a day out. Once you have the figures in front of you, you can figure out how much disposable income you have.

If you’re on a mission to save, work out how much you can afford to put aside each month and make this transfer just after you’ve been paid. Keep checking your balance every couple of days and adjust your budget accordingly. If you find that you have money left over, move it to your savings account. It’s worth looking around and comparing interest rates and perks if you’re planning to open a new account.

New Year’s resolutions are often better in theory than in practice, but there’s a lot to be gained from wanting to boost your savings and reduce unnecessary spending. These simple steps will enable you to increase the amount of disposable income you have without making dramatic changes to the way you live your life or sacrificing everything you enjoy.

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New Year Money Resolutions You Can Actually Keep