27 Dec 2017  Financial New Year’s Resolutions from Samantha Seaton, CEO of Moneyhub Enterprise

1. Change unhealthy spending habits

Notice when you’re engaging in bad money habits, whether it’s unnecessary daily spending, prioritising short term goals or not taking financial advice when it’s needed. Once you have identified if you’re engaging in these kinds of behaviours then you can begin to put plans in place to enable you to take control of your financial wellbeing. Traditional guidance would have been to put aside an hour a week to undertake financial admin but modern money management tools like Moneyhub will make this easier and help you understand how to make your money work harder for you.

2. Make realistic budgets and set spending limits

Make sure you have an accurate list of all of your outgoings including your rent or mortgage, utility bills, council tax, fuel and food. The more realistic you are about your spending the easier it will be to get results from your plan, so factoring in things like eating out and socialising is essential. Modern money management tools make this easy by tracking and categorising your spending for you and tracking your goals for you. Remember, assign as much as you can to debt repayment as the sooner you can pay off your credit, the less you’ll pay in interest, saving you money in the long run.

3. Use platforms to keep track of finances in one place

Use money management tools to see all of your spending and saving in one place. This makes it easier to understand your money as the spending analytics can show you exactly where your money goes each month and nudges can remind you if you’re about to exceed a spending goal, if a bill is due for payment, and even identify opportunities to save.

4. Make a repayment / savings plan

Once bills are covered each month then your focus should turn to debt repayment and savings. Repaying debts should take priority over saving as the interest due on loans is likelier to be higher than any interest earned in cash ISAs, leaving you out of pocket in the long run. Don’t forget, if you can afford to pay off a larger percentage of your loan then make sure you won’t be charged for paying them back early.

5. Ask for help if you need it

At this time of year, it may seem like every other TV and radio advert is for a debt management company. While this may feel like a tempting option if you need support, remember that their help comes at a cost. There are numerous charities and government organisations that are set up to help people struggling with debt, for free. Companies like National Debtline, the Money Advice Service, Stepchange and Citizens Advice offer free debt advice, and some can even contact the credit providers on your behalf to set up a payment plan that works for both of you. Once you have a plan modern money management tools, like Moneyhub analyse your data for you and give you nudges to help you stay on track and identify opportunities to save more money.