7 January 2020

Top tips for constructive financial planning in 2020

The New Year is a great time to take a look at your finances and make positive changes for the year ahead.

By now, many of us will have already set our New Year’s resolutions – it could be to join a gym, quit smoking, travel to a new destination or, for a lot of people, save money.

Whether it’s saving for that new home or committing to regularly putting money aside for a rainy day, January really is an ideal time to set a financial plan for the year ahead.

 

1. Set a monthly budget

It might seem like basic stuff, but setting a monthly budget is the basis for a healthy bank account.

A good place to start is to take note of every single bill that is expected to come out of your account, from mortgage or rent payments, to your phone contract or your TV license. From here you can set aside how much disposable income you need until your next pay cheque - and then work out how much you are realistically able to save.

However, be prepared to live off less disposable income should you have to; you never know what unexpected costs might be around the corner.

 

2. Take time to read your bank statements

How often do you regularly look at your bank statement? It’s important to make time to do this – to stay on top of your outgoings, especially if you have several direct debits set up.

Are you signed up to something you no longer wish to be paying for? If so, now is the time to cancel those payments and save yourself some money.

Regular statement check-ups will mean you can spot any incorrect payments being taken from your account.

 

3. Set goals

Setting simple financial targets for the entire year is a great way to ensure you stay on track with regular saving. This could be for a large purchase like a house deposit, or it could even just be putting money aside to generally build up your savings and put you in a secure position for the future.

It doesn’t matter the size of the target, just as long as you keep to the regular payments each month.  Start off by reviewing your monthly expenditures to work out how much you could afford to put away each month, but make sure your goals are realistic and won’t leave you short until your next pay cheque.

 

4. Shop around

Now is a good time to review any bank accounts you currently have, particularly when it comes to savings accounts.

Take some time comparing the different products on the market, along with their interest rates, to see if you could get a better deal than the one you are currently on.

Comparison websites are always a good place to start, as they will help you compare the products that are out there.

 

5. And finally…

Keeping your finances in shape doesn’t have to be hard. Once the good habits are set, you’ll find yourself on top of your finances quicker than you might expect.

So whether you’re setting a resolution to be on top of your finances this year or not, starting 2020 by reviewing your bank accounts will put you in good place for the year ahead.

Published: 07/01/2020