When looking to manage your finances it is important to make sure that you have a plan in place to stick to your budget. But with the new year just around the corner, it could be time for a new set of financial resolutions in 2021.
In this article, we will be providing you with some of the financial resolutions that could provide you with a huge amount of long-term benefits financially.
Automate your savings where possible
When looking to better your finances in 2021 it is important to automate your savings where ever you can. Whether this is a direct movement you make with your bank or you automate the payment process from your work, this will enable you to place a certain amount into a savings account every month without it getting in the way. This will enable you to get into the habit of saving over time without leaving yourself out of pocket.
Pay off your outstanding debt where you can
Another way that you can begin to get yourself financially stable in 2021 is to pay off your debt where you can. By paying off your outstanding debt, you can begin to get yourself financially stable as we head further into the new year. This is a financial resolution is one that will provide you with relief in both the short term and the long term, allowing you to have more control over your finances. This will enable you to pay off any debt that you have and keep your monthly spending to a manageable amount.
Create a spending plan if you suffer with budgeting
When looking at finances, there are many alarming figures that some people may not be aware of. One of these is that in 2017 it was estimated that around 6.5 million adults in the UK do not have savings. This could therefore lead to a majority of these people applying for short term loans online and other loans to get them out of their financial emergency. However, by setting a resolution to start budgeting, it is important to create a spending plan to aid you in managing your finances and limiting the dependency on alternative finances in a financial emergency.
Start a fund for financial emergencies
As an alternative to a payday loan or another loan, your new year’s resolution should be to create an emergency fund should you need it. Though this is something that several people may not be able to do this, saving even £50 per month can make for a nice savings amount for you to use in a financial emergency and lessen the stress in this scenario. By taking the time to make a savings account, you can then begin to make this a habit throughout the new year.
With this in mind, there are several financial resolutions that you can make to better your finances step by step throughout the course of the next financial year. Which of these will you be choosing?