The New Year is always when we start to think about change. An expensive festive season— combined with that promise to start again and do better in the coming 12 months—means money is often top of the resolution list. Try these tips to help you manage your money throughout the year and avoid getting into difficulties.

1. START A BUDGET

This will show what money you have coming in, what money is going out, and most importantly, how much you have left at the end. It’s not as scary as it sounds as there are many tools and templates that can help you, including one on the Money Advice Service website.

2. SAVE FOR EMERGENCIES

Research shows that 70% of households face an unexpected cost in a year. If you manage to put aside just £3 every day into an emergency fund, you most likely won’t get derailed by a broken boiler or high vet bills.

3. IDENTIFY SIMPLE CUTBACKS

Even just having one less shopbought coffee a week can save you over £150 over the course of a year. You’ll find there are plenty of small ways that can quickly add up. The cutback calculator on the Money Advice Service website can help here.

4. PAY OFF DEBTS RATHER THAN HAVE SAVINGS

If you have debts but are also putting money into savings, you’re usually far better off using that money to clear what you owe—the interest rate you’ll be paying on the debt is likely to be far higher than what you’ll be making on the savings. Make sure you have funds for emergencies and start with the most expensive debt first.

 

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