New Years Resolutions to Keep Your Pockets Happy

It’s that time of year again when we start to set ourselves goals and resolutions for the New Year. Maybe in 2022 you’ll start going to the gym like you’ve been saying for the last 3 years (and sticking to it) or start saving for the new car you’ve had your eye on. Whatever your goals are, now’s the time to start thinking of them and planning them.

In 2021 48% of people set saving money as their resolution. And according to Forbes, 80% of all New Years Resolutions fail… usually before the end of February. That means only two months of serious saving before you’re back to your old ways. As a credit union, our goal every year is to encourage healthy financial habits, regular savings and fair banking for the whole of our community. So here are our ideas to help you keep on track with your money resolutions in 2022…

‘This year I want to save more money’

The key to saving money is finding a way that suits you and your budget, and being consistent with it. It might take a while to get into a good routine when saving, and not every saving method will work.

Here’s some methods you could try in the new year:

• Give yourself a monthly budget based on your earnings. The amount you have in your account (after payday for example) over your budget you’ll put into your savings. E.g. Your budget is £1,000 and your current account balance is £1,200, you’ll put £200 into savings.
• Cut something out and see how much you can save. For example if you buy lunch everyday, or a coffee every morning, cut these out and put the money into savings instead.
• Set up a direct debit or a salary deduction. Have a set amount automatically put into your savings each month – no need to transfer money, the bank will do it for you.

‘In the new year I want to improve my credit’

There are a few ways to improve your credit score. And if this is something you’ve looked into before you’ll already know the basics (joining the electoral roll, getting a credit card, etc.). Defaults will stay on your credit report, but you can prove to a lender that you are no longer a risk by changing your financial habits in the new year…

• Stay on top of your repayments. It might sound obvious, but staying up to date with your borrowing is the best way to prove your reliability. If you ever find yourself struggling, you should contact the lender ASAP to find the best solution.
• Create a good track record. The best way to build your credit is to have a continuous record of successful repayments.
• Regularly check your report. It’s good practice to regularly check your credit report. There may be times when it has not been updated properly, or when something has been added by mistake.

‘In the new year I want to be better with my finances’

As a credit union, one of our aims is to encourage our members to have good financial habits. These habits can come in all shapes and sizes… from tackling gambling, to saving money on your weekly food shop. There are small things and big things that you can do to create good habits for yourself. Take a look at some of our other blog posts for some inspo:

• The Link Between Money & Mental Health
• Talk Ban Stop. Why London Mutual is Working with GamCare
• Don’t Take It Personally: Improving Your Chances of Being Approved for a Loan