New Year, Old Financial Habits



Posted on: 20th January 2021

The new year opens up avenues to getting finances in order in a bid to make your money go a bit further whilst improving your credit.

It can be easier said than done after one of the most challenging financial periods in recent history. By adopting new habits when it comes to your money and helping to kick those bad spending habits out of the door, you can save wisely, spend better and succeed in reaching your overall financial goals.

How can you kick the new year into financial success?

Take Care of You

We all have those bills to pay, but before you start spreading out the cash why not take care of saving and investing portions of your earnings before anything else.

By saving at least 10% of your earnings away from your expenses into an investment or savings account, you start a habit that actually gives something back to you. With that taken care of and put away from the overall math, it no longer feels like everything is being taken and leaving you with little. Straightaway you have control of finances and it feels like everything else gets paid with what’s left, including bills and essential living expenses.

It’s a simple exercise but it does make you feel more in financial control and keeps you some money growing.

Non-Essential Spending

Believe it or not, this is the point in time where you should actually be saving more by the way we have less to do.

You don’t dine out, you don’t go to the movies and you probably travel less than you ever have due to the pandemic. This gives the opportunity to save big by not caving to certain ‘easy’ areas. The food delivery industry is booming right now, but do you really need to spend upwards of £30 on one takeout when £10 on the same ingredients can be bought in stores?

This is the easy way to spend more than you earn leading you to more debt quickly. By being smart with what you require and how much the difference in price will be, you get a better understanding of just how much money you can save in one month.

Don’t Give in to How You Feel

If you feel down, you’ll end up buying something to perk you up. The term ‘shopping therapy didn’t create itself.

It’s easy to let our emotions make us impulsive and spend more money than we should be. But emotions and financial decisions should always be as far apart as possible, so rational thinking when dealing with anything financial is paramount to one day having the luxury in affording the things that make us that bit happier.

Getting Help with Financial Guidance

Managing your money is not an easy thing whether on large amounts or small of credit, so it sometimes takes independent financial advisors in Cheshire to help navigate to building wealth or securing your future.

By gaining help in drawing up a financial plan, you stand in much better scope to focus energies into retirement planning Cheshire and pension advice in Manchester that they offer.

Talk with the team at Haven IFA today to help you get on the best track financially moving ahead and improve your credit.