10 simple and effective financial resolutions for 2023

As the festivities draw closer and 2022 comes to an end, are you wondering: “what financial new year resolutions can I make in 2023 to help me get more from my money?”. If you are, read on to discover 10 simple but effective resolutions you may want to consider.

1. Form a habit

According to research, it takes an average of 66 days to form a habit, which means the best resolution you could make might be to stick with your new commitment. Typically, starting small is a good way to create a positive habit, as you’ll probably find it easier during the early stages.

For example, if you want to start saving, start by putting a smaller amount aside as you’re more likely to stick with it. This then increases the chances of you fulfilling your pledge and saving larger amounts later on.

2. Use a budget

Using a budget is an excellent habit to get into. Budgeting allows you to understand how much money is coming into your accounts and how much is leaving them. 

This ensures that you can meet your financial commitments without having to rely on credit cards or loans to bail yourself out when you accidentally overspend and can’t meet your overheads.

3. Organise your paperwork

Being organised is an excellent financial habit. If you currently have piles of paperwork, organising them and filing them away so that you know where they are when you need them is an important new year resolution.

This doesn’t mean keeping all of your paperwork in the same place though; for security reasons, it might be better not to. Shred any discarded paperwork and dispose of it securely.

You may want to consider asking your pension provider or bank whether you can go paperless, or scan any documents to create a digital version. These could then be kept securely on your computer.

Once you have organised your paperwork, maintain the habit of keeping on top of it.

4. Pay down debt

Another good habit to consider is paying down as much of your debt every month as you can. This could save you thousands of pounds in interest and help improve your credit rating.

If you can clear credit cards at the end of every month, you will typically not pay any interest at all.

5. Create an emergency fund

Regularly contributing towards a “rainy day” fund is good financial practice. The Covid pandemic and recent economic events demonstrate that life doesn’t always go to plan, which is why it’s important to have enough money to stay financially afloat when things go awry.

It’s usually best to have between 3 to 6 months’ worth of expenditure in an easily accessible account, although this depends on your circumstances. The money can then be used to deal with the unexpected without relying on expensive credit cards or loans.

6. Check your pension regularly

Checking your pension on a regular basis provides a better idea of how it’s performing and whether it will provide the lifestyle you want when you retire. A financial planner can explain whether your retirement fund is living up to expectations and provide options if it’s not.

Furthermore, a planner can help you maximise the tax relief pensions provide, which means that every £100 you contribute only costs you £80 if you’re a basic-rate taxpayer. If you’re a higher-rate taxpayer it costs just £60, and an additional-rate taxpayer may only pay £55.

As you can see, maximising tax efficiency could help you increase the value of your pension pot in a relatively short period of time.

7. Pay yourself first

Instead of seeing how much surplus cash you have at the end of the month, and transferring that into your savings, investments, or pension, pay yourself first. Set up a payment that comes out of your account on payday, and then manage your monthly expenditure based on what is left.

This will help ensure that your financial future lives up to expectations.

8. Adopt the “30-days rule”

If you enjoy shopping but suffer from buyer’s remorse later, you may want to consider the 30-day rule.

When you see something you would like, instead of buying it straight away, commit to buying it in 30 days if you still want it. During the period, consider carefully why you want it, and if at the end of the period you still do, go ahead. 

9. Consider investing your money

Historically, investing money has tended to expose it to greater growth potential than placing it in cash savings. Research by Schroders showed that between the start of 1952 and the end of May 2022, UK equities returned 11.7% a year on average while cash averaged 6% a year. 

While you can invest a lump sum, you may also want to consider making regular contributions to investments. That said, investing should not be entered into lightly, and please remember that past performance is no guarantee of future performance.

10. Work with a financial planner

The best way to get your finances in shape for 2023 and beyond is to work with a trusted financial planner. They can help you define your goals and create a wealth strategy that will help you achieve them.

Get in touch

If you would like to discuss these and other ways you could get more from your money in 2023, please email me at a.douglass@grosvenorconsultancy.co.uk or telephone 01793 766 123. Alternatively, call my mobile on 07525 177 046, I’ll be happy to help. 

Please note that while I offer high standards of service and ensure that any solution I recommend is right for you, I’m also a busy mum, so work Mondays and Tuesdays only.

Please note

This article is for information only. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

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