New year, new financial resolutions

Before it gets too late to talk about the 'New Year', let's talk New Year, New Money Resolutions!

2022 was a year of uncertainty in all aspects of our lives. Could you put that behind you and use the new year as an opportunity to give your financial plans a review and a reboot?

It can be overwhelming, thinking about money and finances with so many options to consider and only a limited amount of funds available. So, let’s keep it simple. If we break down saving into the basic options, you have:

·???????Save at source

Pension contributions come out of your salary before it reaches you and you are used to never having had that money. You can adopt the same approach with other savings i.e. set up transfers to your savings on pay day so the money has left your account and you are not tempted to spend it elsewhere.

·???????Decide what you are saving for

Think about your short, medium and long-term goals, which will give you a focus and will also determine how and where you save. Is this the year you start saving for a house deposit? Or do you want to start building towards a comfortable retirement - it may feel like a long way off but remember the sooner you start, the easier it is to accrue value.

·???????Be honest about your outgoings

Take some time to properly look at where you spend your money. Some expenditure will be on fixed costs, such as bills, travel, food and social, and some will be more impulsive spending, like luxury items and going out.

It is easy to spend impulsively, without thinking how it will affect your pocket at the end of the month – meals out, new clothes, nights out. Remember lockdown when we had to curtail all such things and we survived without missing them (well not too much!). ?

Once you have broken down your spending, you will see what is left over. This is your real ‘disposable income’. From this you can budget, allocating money to each spending ‘pot’. It’s advisable to keep an emergency fund as well, ?in case of an unexpected bill for our car or change in employment status.

·???????Consider how and where to save

There are different options and plans available for different types of savings. Each will give you a different return on investment and each has its own features and bonuses. Before deciding where to invest, speak to a financial adviser about your plans and they can guide you, both in terms of where to invest and how much is affordable for you.

The most important thing is to make a start. Use January as your springboard into new financial intentions. The longer you delay, the longer it will take to reach your goals.