How to stick to your financial resolutions

EACH year, millions of us start the New Year resolving to ditch our worst financial habits.

Unfortunately, every year, nine in 10 of us will fail.

Sarah Coles, personal finance analyst at investment firm Hargreaves Lansdown, reveals seven secrets to help you stick with your financial resolutions.

1. BE REALISTIC

DON’T try to change everything at once, or it will be too hard. Don’t set a distant goal either, or you’ll run out of stamina. Get one or two bite-sized challenges that you can realistically expect to hit over the next few months. Once you’ve achieved those, set new ones.

2. BE SPECIFIC

SET a goal like “save £50 a month” or “pay off £1,000 of the credit card by the end of the year”. Then work out exactly how you’re going to get there.

3. DO THE EASY THINGS FIRST

BEFORE you consider freeing up everyday spending for more valuable goals, do easy things first, like shopping around for cheaper bills such as energy and insurance. These will save money each month without constant effort.

4. CARRY ON BEST PANDEMIC HABITS

TRY to make a list of at least five small changes you can live with – from squandering less cash on non-essentials to exercising outdoors instead of in the gym.

5. AUTOMATE YOUR GOOD HABITS

THERE are savings apps that will automatically squirrel money away y for you. Some charge a fee, but there are free options. Or set up a standing order from your current account into a savings account on payday each month – before you have time to spend the cash.

6. CHECK HOW YOU’RE GETTING ON

BANKING apps can make this easy for you if your bank breaks down your spending for you. Otherwise consider a budgeting app that does a similar sort of thing.

7. REMOVE TEMPTATION

IT’S easier to do the right thing when temptation is out of reach. Try unsubscribing from emails from specific shops or moving shopping apps to the final screen of your phone, so you don’t get distracted by them.