January is a fantastic time to re-evaluate your spending: there’s nothing better than starting a new year with fresh resolve to improve your personal finances.
It can be easy to develop bad habits with your money – like dipping into your savings account or not living within your means. However, it’s important to keep your head above the water and spend sensibly, especially if you’re trying to save.
We’ve outlined five of the most helpful habits for your personal finances below.
- Prioritise your bills
The first place to start with your money is to see how much of it will be deducted throughout the month in bills, expenses, and any outstanding debt.
Once you’ve calculated how much you expect to be left over, try to work out your monthly loan repayments alongside your bills and living costs. Finding a repayment plan that works for you is critical through challenging economic times.
- Cancel unnecessary subscriptions
We all have subscriptions we’ve forgotten about and continue to pay for each month. Whether it’s your Netflix account or Amazon Prime you can do without, try to start researching how to cancel and enjoy the extra money.
Cancelling isn’t always easy though: if you’re struggling to find your way out of a subscription you no longer use, don’t be afraid to ask for some help.
Citizens Advice offer guidance on stopping future payments on your card – so make sure you’re only paying for what you use.
- Check your savings
You might have some savings tucked away, but it’s important to keep them organised.
You might use money from savings once every now and then – but the more you know about interest rates, the more likely you might be to want to keep your money where it is.
It could be beneficial to weigh up the type of savings account you have and compare it with accounts offered by other providers. Interest rates vary across different banks, so you might be able to find one with favourable rates on savings.
- Reuse, repair and recycle
Consumer culture is one of the most financially draining aspects of our society.
The constant need for new clothes, devices, cars, and accessories keeps monthly costs higher than necessary – so why not try to be resourceful? There are plenty of ways to help save money and save the planet at the same time too.
Instead of replacing a pair of jeans, try fixing a hole or using a colour dye treatment to give them a new lease of life. Or if you have some tired-looking furniture around the house, sanding it down and giving it a fresh lick of paint could be transformative.
- Cut back on insurance costs
Lastly, it’s always worth checking that you’re getting a good deal on insurance policies.
You should never go without insurance – especially for your car, your home, and your health – but you might be missing out on a better price for a similar level of cover. Do some proactive research to compare quotes and call providers to see how much you could save.
Do you have any of your own money-saving tips for 2023? Feel free to share them in the comments section below!