December 28th 2024.
Are you looking for ways to save more money in 2025? Look no further, because Metro has you covered. As we head into the new year, it's no surprise that the most common resolution is to improve our finances by saving more and spending less. In fact, a recent YouGov poll found that over a quarter of people who made resolutions are focused on their financial goals. But let's be realistic, it's not easy to suddenly get a huge pay raise or save 50% of our paychecks each month. If that's our mindset, we're setting ourselves up for failure.
Liz Hunter, director of Money Expert, agrees. She believes that the key to achieving any big financial goal – whether it's paying off debt, saving for a specific amount, or increasing your pension – is to develop good habits. With that in mind, Liz has shared seven simple habits for the new year that will make reaching your financial goals feel like a walk in the park.
First and foremost, it's important to regularly check your bank accounts and bills. This may seem obvious, but it's crucial to know exactly what's coming in, going out, and what you can afford to spend. It also helps to catch any issues, such as fraudulent charges or being too close to your overdraft limit. Liz suggests setting aside a short weekly session to review your spending, or doing a quick balance check each day to stay on top of things.
When it comes to bills, remember that just because they're necessary expenses doesn't mean we're stuck with the costs. Take some time to go through your utility, broadband, phone, and insurance bills a few times a year. Use comparison sites to see if you can lower your monthly or annual payments. And don't be afraid to haggle with your current provider – they often want to keep your business.
Next, it's important to track your non-essential spending. After a few months, take a look at your bank statement and write down all the non-essential expenses and why you spent that money. Categorize them to see where you can cut back. Some banking apps, like Monzo, already have this feature built-in. This can help you streamline the process and stay on top of your spending.
Consider your savings options. Opening an instant-access savings account is a great place to start, as you'll earn more interest on your money. As you build up your savings, look into other options such as fixed-term savings accounts or ISAs for tax-free interest. You can also turn on round-ups in your banking app, which will automatically save the difference when you make a purchase. Monzo customers save an average of £129 extra per year using round-ups.
To make saving even easier, you can also set up a standing order from your current account to your savings. This ensures that saving becomes a priority over non-essential spending. You can also create pots for special occasions, such as birthdays, Christmas, and holidays, to avoid dipping into your savings.
Signing up for loyalty card schemes may seem like a hassle, but it can save you money in the long run. For example, Tesco Clubcard users can save up to 7% on their shopping, and Co-op customers can save up to £300 per year. And when it comes to big purchases, try to only buy what you can afford. Avoid spreading payments over a few months, as this can lead to missed payments and a negative impact on your credit score.
Finally, be an intentional buyer. Create lists and only add items you genuinely need. Use the 48-hour rule – wait 48 hours before making a purchase to consider if it's really necessary. Research and compare prices to find the best deals and avoid being taken in by extreme discounts. By following these tips, you can spend your money more intentionally and reach your financial goals in 2025.
Do you have any financial New Year's resolutions for 2025? Share your thoughts and results with us on social media. And if you have a story to share about your financial journey, we'd love to hear from you. Get in touch by emailing us at [insert email address].
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