As the holiday season festivities die down and you start regretting all the indulgence a little, you’ll no-doubt be ready for a healthy January detox. But why detox just your body and mind? How about getting your finances in shape too?
The start of a new year is the ideal time to shape up your finances, and this doesn’t mean curbing your spending so much that you end up feeling the January blues more than ever. With just a little extra organisation you can get yourself set up for a much more financially successful year.
Begin with a budget
It’s one of the best steps you can take at the start of a new year, and it doesn’t have to be overly complicated either. Simply sit yourself down for 30 minutes or so and work out your incomings and outgoings.
This includes collecting up all your paperwork or getting all your online accounts together, including statements and bills. There are plenty of budget apps and planner tools that can help you do this. Once you have all this information in one place, you’ll be able to properly breakdown your spending and get things on the right track.
Get to grips with your DDs and SOs
We’re all guilty of having Direct Debits (DDs) and standing orders (SOs) coming out of our account that we probably should have cancelled years ago. Whether it’s something you signed up for a free trial of and forgot about, or a subscription service that you haven’t actually used in months, now is the time to sift through and get rid of all those unneeded outgoings.
You may be surprised at how much you can save by deleting these DDs and SOs that you’ve forgotten about. It’s also worth setting up DDs and SOs for your bills and utilities etc if you haven’t already, as this can make life far easier and save you money in the long run.
Switch to cut more costs
It’s surprising how many people never switch because it seems as though it would be a pain. But the reality is, you can end up saving yourself quite a bit of extra cash by not staying with your current providers forever.
There’s no point being loyal to a particular provider when you’re paying more money than you need to. Unfortunately, most companies only offer the most lucrative deals to new customers, so the longer you stick with one, the higher the cost will be. So switch as soon as you can to start saving now, and you’ll likely get a better deal for your money as well, such as faster broadband or more entertainment to choose from.
Focus on the ways you can spend less
Have a look at your statements over the last year and focus on the things that you’re spending the most money on, outside of your mortgage, rent, or bills etc. The £2 you spend on lunch each day or that cup of coffee in the morning for example can soon add up to thousands of pounds a year.
These extra costs can easily be cut. For example, you could invest in a flask and brew yourself a coffee at home in the morning, or you could make yourself lunch the night before and avoid spending more money the day after.
Check out your credit score
Maybe you’ve never really had a look at your credit score, or perhaps you’ve left it a few months since checking it, either way the start of a new year is the perfect time to find out how it’s looking.
The good news is, it’s always free to check your credit score, and It’s also information that lenders use when deciding if they want to accept you as a customer for things like a mortgage application for example. By checking what your score is, you can clearly see areas where you need to make improvements, so that you can improve the chances of getting accepted for the things you want.
Build yourself a buffer
Life isn’t always predictable, and sometimes you can end up facing an unwanted surprise that puts a sudden strain on your finances. Whether it’s to cover costs if your boiler breaks down, or to sustain you if you lose your job; having funds in place in case of emergency is something to seriously consider.
Take the steps in the new year to start protecting yourself should the unforeseen happen, by building yourself an emergency buffer. Whether it’s a few hundred or a couple of thousand, it’s important to have an amount of money you can rely on should you suddenly need it. Be sensible though, and only put funds aside that can afford to.
Consider remortgaging
If you’re a homeowner, then like many others you may be considering a remortgage in order to secure a better deal. Remortgaging is a great way for you to take advantage of new rates and more cost effective products.
Plus, if you’re looking to shape up your finances in the new year, and need to save for upcoming holidays or big life events like a wedding, a remortgage can help you free up some cash. If you’ve been with the same lender for a while, you’re likely paying more than you actually need to.
So, speak to mortgage experts as soon as possible to discuss remortgaging your home. At TaylorMade, we can guide you through the whole process and help you secure the best deal for you. Get in touch with us today on 0345 305 2540, or at info@taylormade-finance.co.uk.
