Making resolutions is part of every new year celebration.
Resolutions such as daily exercise, cutting down the sugar, alcohol or late nights are all based on good intentions. But if they donโt provide an immediate improvement to our lives, weโd rather go back to our old ways.
So here are some financial resolutions which are well worth keeping, because they could mean very real, and very achievable benefits.
1.ย ย ย ย ย Resolve to track your spending and start budgeting
Where does your money go each month? Now that cash is becoming a novelty you can watch your spending with your bank app.
Take the time to track big bills, like mortgage, council tax and car payments and all the little things such as groceries, the daily coffee, the weekend bottle of wine, even the daily newspaper. Itโs all there on your mobile screen.
It can come as a surprise. There are probably some mysterious recurring charges, online subscriptions and the like which you had forgotten about.
The benefit of knowing? You can budget better without unnecessary drains on your money โ and be left with more left each month.
See the Continuum Budget planner for help.
2.ย ย ย ย ย Resolve to get out of debt
How to best use the extra cash? Your second resolution could be to use it to pay off debt. Debt is easy to get into, particularly this time of year, but harder to get out of.
Credit cards, with their frighteningly high Interest rates are probably the place to start. Can you find a 0% balance transfer offer from another card provider? Transfer your balance and try to pay it off before the offer runs out.
Getting out of debt means no more interest charges and no more repayments, leaving you much better off.
3.ย ย ย ย ย Resolve to start saving
Your current account could start to fill up with spare cash. It makes no sense to leave it there. You can probably find a savings account from your current bank, which will let you move cash in and out from your current account with a touch on a banking app.
There will be a low, but worthwhile interest paid on your banked cash.
Having an easy to access cash reserve is a very good idea, but you could make your money work harder still.
4.ย ย ย ย ย Resolve to become an investor
For most people, investing can be more rewarding than simply saving โ and it does not have to be any more complicated. There are investment funds that put an investment manager to work for you, and with some you can even pay in monthly.
There are many funds to choose from, including Stocks and Shares ISAs that harness the power of the stock market. At Continuum we can help you find one that offers a balance of security and potential that you feel comfortable with.
5.ย ย ย ย ย Resolve to pay less tax
It takes more than a resolution to cut your tax, and expert advice is essential to find tax-efficient ways to manage your finances.
Making sure that your investments are protected by an ISA could be a good place to start, but at Continuum we have many more ways to help keep more of your money out of reach of HMRC.
6.ย ย ย ย ย Resolve to plan for your future
If you donโt already have one, resolve to start a pension without delay, and if you do, resolve to check that it is on track for the kind of future you want. While you are thinking about the future, it could be time to resolve to give your family the insurance protection they need.
Remember, Inheritance tax is looming for more families. You may need to look at the best most appropriate way togive your loved ones your wealth rather than the taxman.
7.ย ย ย ย ย Resolve to call Continuum
2025 could present some exciting opportunities as well as challenges. Dealing with either is easier with an expert on your side. Savings, investment, tax and planning for the future, weโre here to help.
So, make your final resolution to call us at Continuum, and in the meantime, let us wish you a prosperous New Year.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to any saving, investment, retirement or mortgage strategy you should seek independent financial advice before embarking on any course of action.
The Financial Conduct Authority does not regulate taxation and trust adviceย and deposit accounts.
Investors in ISAโs do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.
Levels, bases and reliefs from taxation are subject to individual circumstances and may be subject to change
The value of an investment can go down as well as up and you may get back less than you invested. When investing Capital is at risk.
Equity based investments do not afford the same capital security as deposit accounts.
A pension is a long-term investment; the fund value can go down as well as up and this can impact the level of pension benefits available. Pension Income could also be affected by interest rates at the time benefits areย taken. Pension savings are at risk of being eroded by inflation.
Your home may be repossessed if you do not keep up the repayments on your mortgage.
