With the New Year just around the corner, many people will be starting to take a long, hard look at their finances. But what decisions will be made and will you still to yours?
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One decision many people will make this year is to invest their money. To ensure you do this, and do it well you should begin with a large amount of research. Know exactly what you are putting your money into, analyse market trends and predict (to the best of your ability of course) how well your investment is likely to do.
Another resolution top of the list is to get out of debt. Far easier said than done but it is possible. The key to this is to be brutally honest with yourself. Sit down and work out your exact spending each month. Be sure to include everything, even if it’s simply a daily newspaper or a can of coke on your lunch break. Only then will you be able to see what you can cut back on and how much spare cash you have available on a monthly basis.
On payday, instantly pay this extra amount into a savings account or even better, a relative’s account, whom is unlikely to give you the money back unless you desperately need it. Then, at the end of each month use this money to pay off an overdraft, loan or credit card.
A common resolution that many people find hard to stick to is to save, create a direct debit from your account to pay into a savings account each week and cut back on unnecessary spending. You’d be amazed just how much you spend on little ‘treats’ which can easily be cut back on.
Investing in your child’s future is a huge resolution that should be a must for any parent. Investing in ISAs ensures that when your child is of the age where university is an option, you have some money to send them off with.
The New Year is a fantastic time to look closely at your spending and really cut back, but the trick is to keep up the momentum all through the year. Don’t be tempted to dip into savings for small bits and bobs as this is when the snowball effect can take place. The odd fivers soon mount up to hundreds of pounds that could be put into much better use.