JANUARY IS NEARLY over – how did that happen?
Your resolutions about going to the gym every morning might be falling by the wayside already, but never fear – there’s still plenty of time to get things in order for the rest of 2016.
When it comes to finances, there are plenty of changes you can make in order to become more financially fit in no time. We’ve rounded up some handy pieces of financial advice to help you get 2016 off to a flying start.
(But of course, feel free to share your own advice in the comments section – you never know who you might help.)
The best way to approach a new or first-time savings account is to sit down and assess where your money is actually going on a weekly or monthly basis. This financial health check sheet can help. Once you’ve figured out your main outgoings, another idea is starting to keep a daily spending diary to see where the rest is being spent.
The possible savings you spot here could become the cash that you put away for a rainy day – making a difference for you long-term.
It’s worth checking regularly if your internet, TV packages, home and health insurance, etc are the best value. There are lots of price comparison sites out there, such as Switcher and Bonkers. As well as this, make sure there aren’t any services you no longer need – like a landline connection, travel insurance, etc. Check out Consumer Help’s range of financial product comparisons to get started.
Saving for that big holiday of your dreams, or an extension on the house? Put a name on your savings, and they’ll feel more real. Use a savings calculator to then work out how much per month your goal will require – and how long it will take.
Having a firm, set goal in mind makes it easier not to spend money unconsciously. If you know you’re saving a certain amount, you can keep that in your mind when trying to cut out unnecessary daily expenses (like that second Americano). Do a financial health check, above, on a regular basis to see how much you can up your saving amount over time in order to reduce how long it will take.
Your goals and monthly contributions should be realistic. Don’t leave yourself short, but try to see if there’s a minimum amount you could manage to spare. Too little and there’s a sense/feeling that savings are not growing, too much and you find yourself dipping into savings resulting in feeling like a failure. You may not get it right straight away but after a few weeks/months, forecasts can be adjusted to more realistic levels.
Also, if you’re going to put your money away, make a decision on what type of savings account is right for you. There are long and short term options, variable and fixed rates, and lots in between. On a savings comparison site like Bonkers, you can select what type of saver you are, and what’s important to you, and compare different providers, interest rates and accounts at a glance.
Now, set up a direct debit taking that amount away on your payday, be that every week or month. If it’s gone before you know it’s there, you’re less likely to miss it. If you wait until the end of the month, chances are you’ll have managed to spend what you wanted to put away. (Prevention – always better than the cure, right?)
If you’re the type of person who is tempted to dip into savings, look into long term deposit and 28 day notice accounts. Remove temptation!
If you’re tempted to dip into your savings, why not consider opening an account with a savings specialists rather than your day-to-day bank? That way your money is at arm’s length – removing temptation to dip in and out. If you want to be a smarter saver, head over to RaboDirect and find out all about their smart saving options. Reach your savings goals this year with the savings specialists.
This piece was created by a member of TheJournal.ie’s copywriting team. Coöperatieve Rabobank U.A., trading as RaboDirect, is licensed by the Dutch Central Bank in the Netherlands and is regulated by the Central Bank of Ireland for conduct of business rules. Terms and conditions apply. RaboDirect is part of the Rabobank Group.
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