Six in 10 (59%) people will make financial resolutions for the New Year, according to a survey of 2,000 people by Opinium for Hargreaves Lansdown.
Women are more likely to make financial resolutions than men (64% versus 55%), with spending less, getting on top of their finances, shopping around, paying down debts, paying into a pension and making a will also appearing on the list of popular resolutions.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “It’s the time of year where optimism is running high. We don’t need to be the person we were last year; we can be a shiny new version of ourselves, who is good with money and on track in every corner of our finances. Sadly, our positive outlook doesn’t always last, but with 59% of people making financial resolutions this year, it’s worth taking steps to make these pledges stick.”
How to make successful New Year’s resolutions
Be specific
The only way to hit a goal is to set one, so it’s not enough to say you’ll spend less or get on top of your finances.
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Coles said: “You need to identify where you’re spending too much and can cut back, and where you’re going awry with your finances, so you can tackle specific problems. A vague promise to try harder is no more likely to succeed than a general promise to eat better.”
Pay yourself first
If you’ve struggled to save, invest, or free money up for a pension, it may be because you committed to using any money left over at the end of the month, and when you got there, there was nothing left. The key is to pay yourself first – and save before you have a chance to spend.
Automate the process
You can set up direct debits to do the hard work of remembering for you. This might be into a savings account if you want to build emergency savings.
If you’re keen to invest, a regular saver is a great idea – this lets you pay into investments every month without you having to do anything.
Free up the cash
If you’re committing to a new habit, you need to work out where this money is going to come from, or you’ll run into a financial dead end.
Coles added: “It’s why so many resolutions need to start with drawing up a budget, looking at where you’re spending, and identifying specific cuts that will free up the cash you need.”
Use your diary
Some jobs are a one-off, so making a date to get it done is a sensible first step.
This can work well for things like making a will – particularly if you’re making an appointment with a will writer or lawyer to kick-start the process.
