How To Stick To A Financial New Years Resolution

How To Stick To A Financial New Years Resolution

The beginning of a new year is the most popular time for people all around the world to rethink and reorganise certain aspects of their lives. Many people may choose fitness-related goals after all of the food they ate over the festive period. Some may set themselves objectives they wish to achieve at certain points throughout the year. But, one thing many people completely forget to consider is their finances. Your finances play a huge role in your daily life, they restrict you and enable you to do the duties and tasks needed. Therefore, it is essential for you to have mastered what works for you in order to balance them steadily. So, we have listed a few financial goals people often choose along with how you can stick to a new years resolution.

Reflect On 2021

In order to better yourself and move forward with your finances, you need to have identified what works and what doesn’t. So, if you take the time to reflect on your financial relationship throughout 2021, you might get a better idea of what you need to avoid, as well as what you need to stick to. This way, you’re not holding yourself back from reaching your financial goals. With this being said, just because you’re cutting out the things which haven’t worked for you throughout 2021, does not mean that you will find your financial freedom straight away. There are thousands if not millions of ways to manage your money, so you will definitely come across those which don’t necessarily benefit you, before the few that do.

Financial New Years Resolution Ideas

A new years resolution should be something personal, specific to you and your own finances. Your resolution should benefit and push your abilities, instead of necessarily keeping you in your comfort zone. However, we understand that choosing something from the top of your head can be difficult unless something is jumping out at you. Therefore, here are some ideas which you could adapt to in 2022.

Save More

Everybody should have money saved up in order to cover them in financial emergencies. This way, you can pay for whatever you are faced with minimal financial struggle. However, this isn’t always the case. Many people result in turning to something like a payday loan or a short term loan to help them fund the emergency immediately. Despite these loans being fast and helpful, they can definitely have their negative impacts if used incorrectly. Therefore, having money saved up for certain situations whether that be rent, bills, holidays or emergencies is essential.

According to Finder, 1 in 10 Brits have no savings at all and a third of Brits have less than £600. If you find yourself in this category then perhaps 2022 will be the year you strive and challenge yourself to create some sort of savings to cover yourself in unexpected emergencies.

Pay Off Existing Debts

Currently, most people live with some form of debt, whether that be from loans, credit cards, mortgages etc. Often, if controlled and repaid every month, debt isn’t the biggest issue that people worry about. However, problems start to arise when the debt is left to spiral out of control and potentially affect aspects outside of just our finances. Therefore, many people continuously choose to focus on repaying debts as their personal new years’ resolutions. But, how can you actually do it? If you’re looking for some ideas to get you kick-started, click here.

Increasing Your Credit Score

Having a low credit score can hold you back in many ways, some of which you wouldn’t even think of. Therefore, working on increasing your score can only positively impact you and your finances in the future. Unfortunately, no matter what you do, your score doesn’t shoot up at once. In fact, the process is gradual, meaning that the changes may be slower than you’d hoped for. However, this shouldn’t prevent you from starting your journey. If you find yourself struggling with no other answers, here at LoanPig we offer bad credit loans, for those who may be held back due to their ranking.

new years resolution

How Can You Stick To Your New Years Resolutions?

Out of everything we have listed, actually sticking to your changes is the hardest part. In fact, 43% of people actually give up on their goals after one month. Therefore, it is important to stay focused and motivated in order to make a change in your life. So, how can you actually make your goals stick?

Break Them Down

Having big goals (or small goals) is great, we all wish for things we want to achieve, but a lot of the time we don’t actually know how to reach them. Therefore, we suggest that you break them down. This way, you can identify each small step in order to progress forwards and achieve the goals you have set.

Be Realistic

We all have ideas and dreams which we want to achieve at some point throughout our lives. However, when setting yourself a new years resolution you need to be realistic. For example, if you are somebody who has no savings, it’s impossible for you to be able to save more than you earn in one year. Therefore, why not set something more realistic like the ability to save one month’s income or something similar. Otherwise, once you realise your goal is unrealistic, you will lose your passion and motivation causing you to give up.

Track Your Progress

Tracking your progress at each small milestone will increase your motivation by a mile. Being able to see how far you have come and how far you have got to go will push you to achieve the next part of your journey. Therefore, steering you away from any signs of quitting and helping you keep you on track.

New years resolutions don’t work for everybody, the idea of starting something in January and ending it in December isn’t something which everybody benefits from. Therefore, it is never too early or too late to begin achieving your goals, if you feel as though now is the right time, there shouldn’t be anything holding you back.