We are coming towards the end of January and motivation might be starting to dwindle on the goals you set yourself at the beginning of the year. We are all well and truly back to reality after the holidays and routines have begun to set in making the excuses easier. If you are struggling to keep up with your new year’s resolution, why not evaluate and prioritise the most important goals. A lot of the goals set for the New Year will be around self-improvement, health or finances. We have a few tips for those of you who are trying to get your finances in better shape this year.
Trying to make financial changes
If you are trying to improve your financials in 2020 there are a few things you can do:
Income vs. Expenditure
Look at all your outgoings and what you have coming in each month. Do you have a phone bill that you are not getting the full use out of? Maybe you are paying that multi-screen Netflix account that all your friends and family are clinging on to. What you need to do is go through a few months of bank statements and make a list of your expenditures. The first thing to do is cancel any subscriptions or monthly payments from things you simply do not use. Second thing is to look at the subscriptions you can reduce or can live without.
The money you owe is the single biggest thing you need to look at as this is what you are paying off each month. How much interest are you paying on your loan and how much could you potentially save if you were to get rid of your loan in the next 11 months? Some loans will be smaller than others such as a car loan from the credit union in comparison to a mortgage. Consider using any savings you may have to pay off any smaller debts, if you are in the position to do so. The sooner you can get rid of a monthly loan payment the more disposable income you have available to use or save.
Set a monthly spend
Setting monthly spends for groceries and entertainment will help you become more mindful of what you are spending money on and show places you could save a little extra each month. Apps like Revolut are helpful for this and give a breakdown of expenditure provided you are using your Revolut card for transactions. Ireland is full of free activities throughout the year so you could incorporate these into your entertainment time and experience new outdoor hikes, trails and events instead of a paid activity every so often. If you have an expensive hobby or enjoy keeping up with the latest fashion trends set aside money for this each month and stick to it instead of splurging.
Cutting out bad habits
This will not only help with your finance goal but also with your health and self-improvement goals, if you have set any. Bad habits generally add a cost to your life in the short term and long term. In the short term, cutting out cigarettes, takeaways, convenience foods and/or binge weekends of alcohol, will only help improve your financial situation and health. You don’t have to cut them out completely but a reduction will significantly help your pocket. Look at what you are willing to reduce or cut out in 2020 and see the benefits after just 1 month.
Money can be saved on your insurance each year. You have two options; try to get a better deal with your current insurer or shop around for quotes when they are up for renewal. KennCo have a range of Insurance policies you can get competitive quotes for online and over the phone on 0818 25 20 25. KennCo provide Car, Home, Travel, Van insurance and a range of financial lines products; Cyber Insurance, Medical Malpractice Insurance and Professional Indemnity Insurance. Quotes available online at kennco.ie.
Whether your goal is to save money, eat healthier or compete in a competition, setting goals will help you achieve this in 2020. Each month set yourself a small goal that will lead to your end goal in December 2020.