New Year’s Resolutions to save you money

Written by Jools Smith

10 January 2019

It happens every year, we make resolutions with every intention of sticking to them and by February they’re a distant memory.

Many people’s resolution is to be better with their money, specifically to save more. This is a great habit to get into but most people don’t really know how best to do it.

Here are some tips on how to save and stick to your resolution!

Set realistic goals

Like most things, breaking it up into achievable chunks will keep you motivated and not leave you downhearted at the end of the month when you haven’t managed to save as much as you wanted.

The way you save also needs to be realistic. It’s better to start low and aim high, work out how much spare cash you have each week or month and save what you can afford to. Even if it’s only £10 per month, if it’s achievable and you stick to it you’ll see progress which will keep you motivated. Saving £10 is better than £0.  

Gradually increase your target when you can, or if you have a bit extra one month add it to your kitty.

Make savings automatic

One of the hardest things about saving is resisting spending the money on something fun. Of course, there will always be times when you need the money right then and can’t, but unless it’s an emergency, save it!

To avoid the temptation, you can automate your savings each month. You won’t have to think about it, the money will just leave your account when you want it to. After a few months you won’t even think about it.

An automatic transfer from your current account to a savings account on pay day is your best option. There are also apps out there that can save regular affordable amounts for you.

Plum and Monzo are great apps for this. They can help you to meet savings goals, track your spending, set budgets and encourage you along the way. And they’re free!

In case you didn’t know, we also offer a savings scheme to our customers. We set everything up for them and deposit an agreed amount into their accounts, many don’t even realise it’s going out and can build a decent safety net to use when they need it!

Use more cash

With contactless payments becoming more and more common, it’s very easy to go days, even weeks, without handling any cash.

There is evidence that using cash makes it easier to keep track of what you’re spending. Paying in cash registers in your mind more than a quick card payment, meaning you’re more aware of exactly what’s going out.

Try using more cash, you might find you spend less!

Switch energy bills automatically

Switching energy providers can be an easy way of pocketing a few hundred pounds a year. It sounds so simple to do, but many of us put it off and end up forgetting to do it.

There’s now an easier way to do this! There are companies out there who offer automatic energy bill comparison and switching.

Look after my bills’ is a fantastic service which does just that. All you have to do is spend 2 minutes signing up and they’ll do the rest. Making sure you’re always on the best deal and switching you automatically if you’re not, you don’t need to do anything! No brainer.

Save your windfalls

They might not happen a lot, if at all, but if you receive any unexpected cash try to save it. Or at least half of it! It might be a gift or a tax rebate, whatever the amount try to put some into your savings.

By all means treat yourself; we all need a treat from time to time, but try to resist spending it all. You might appreciate it more down the line when you actually need it!

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