As the new year approaches, it’s time to start thinking about your financial goals for the upcoming year to budget effectively.

Christie Cook, head of retail at Hodge Bank says:

“Financial stability shouldn’t be scary or off-putting, it should be accessible to everyone, which is why starting the New Year with a strong budgeting plan is essential for achieving your goals.

“By implementing even a few of these techniques, people can feel confident taking control of their finances and working towards whatever their goals may be for the New Year.”

Christie has also provided five essential savings tips for the new year:

Harness the Power of the 50/30/20 Rule

“One of the most effective budgeting strategies is the 50/30/20 rule, which encourages people to allocate 50% of their income to essential needs, 30% to discretionary wants, and 20% to savings and debt repayment.

“This simple framework empowers consumers to manage their finances while ensuring a balanced approach to spending and saving.”

Set Achievable Savings Goals
“I recommend setting specific and measurable savings goals to provide direction and motivation.

Whether aiming to save for a holiday, a new home, or an emergency fund, clear targets can make the savings process more achievable and rewarding.

Automate Savings for Success
“Automating savings transfers is a proven method to enhance saving habits. By establishing automatic transfers from checking to savings accounts, individuals can make saving a consistent and effortless part of their financial routine, ensuring they reach their goals without added stress.

“By opening a fixed savings account, it ensures you can’t touch your savings for a set amount of time. For example, the Hodge one-year saver means you can’t touch your savings for at least twelve months. However, at the end of the 12 months, you’ll have accumulated interest.

“As has become popular on social media platforms such as TikTok, those looking to save as much as possible have engaged in “No Spend” months, whereby the challenge is to curb impulsive spending for an entire month and instead only focussing on spending when it is essential.

“It is worth trying to challenge yourself with this type of trend. Or, if you think this may be too difficult, it may be worth cutting something out of your spending that you feel you can’t live without, but definitely can, such as takeaway coffees or meal deal lunches for work.”