Financial Resolutions for 2023 from Unbiased.co.uk
Founder and CEO of Unbiased, Karen Barrett, comments: “If you’re starting 2023 on a mission to save money, the good news is that it doesn’t mean giving up everything you enjoy doing. Start with these good money habits to enable you to take control of your spending and saving.”
1. Get your numbers straight
First things first, get an accurate picture of your finances because knowing exactly how much spending money you have each month is crucial to seeing how much it is feasible for you to save. Download our budget planner to get yourself started.
2. Review your direct debits
This is a really quick win because we all have direct debits that renew automatically. Do you need them all? Cancelling unused or unnecessary direct debits or subscriptions can save a surprising amount every month.
3. Do your tax homework
Check if you may be entitled to tax reliefs or benefits that you are not using. There are many obscure tax reliefs available out there, including the marriage allowance, tax-free childcare, rent-a-room relief and many others. You may be able to reduce your annual income tax bill and save yourself a good chunk of change.
4. Consolidate your debts
If you have a few different pools of debt, combining them all may make your life easier and help you pay less in interest. You can either take out a new loan and use it to pay off your existing debts or you can look at 0% transfer credit deals. This means that you won’t be charged any interest on transferred debts for a set period. This can be a great way to start hammering away at any debts you are trying to get rid of.
5. Plan now for rewards later
If you are under 40, you might want to consider opening a Lifetime ISA (if you have one already, you can continue paying into it until the age of 50). This gives you a 25 per cent bonus on savings of up to £4,000 a year. You should be aware however that the bonus is only retained if the Lifetime ISA deposits are drawn to either buy your first home or after the age of 60 (there is a penalty for withdrawals at other times).
6. Ringfence your savings
Set up a transfer to a savings account of a small amount (try for £20 or £30) from the account your salary goes into. Set it for the same day your salary goes in so that you are putting something away before you get a chance to spend it. Small but regular amounts will soon build up.
7. Get expert independent advice
You'll be surprised at how much you can save each month by following these tips and spending more carefully. For a full financial health check to see how much more you could save each month, talk to an independent financial adviser. With more than 27,000 trusted and regulated financial advisers, a platform like unbiased.co.uk is a great place to start.