6th January 2025
Sticking to resolutions can be hard, so we’ve created a list of popular New Year saving tips, to help support your saving goals.
Happy New Year! Like many people, one of your resolutions for the New Year might be to save more money which is a great idea! Sticking to resolutions can be hard, so we have gathered a few tips to help you reach your goal. So whether you’re planning to save a bit of extra money, or preparing for a milestone, these ideas could be a great way to achieve your goals.
With this challenge, you commit to not spending money on unnecessary things for a period of time, such as a month. During this time, you only spend money on essentials, like bills, groceries, and any toiletries needed. Essentially, you avoid all non-essential expenses throughout the savings challenge. This challenge is different from others because you won’t save a specific amount of money. Instead of this, you are choosing not to spend any extra money. This way of saving can help you get back on track with your savings and help you achieve your goals. It can also give you a chance to rethink your usual spending habits. After the no-spend period, you'll have money saved to put into your savings account.
Making a budget is the first step to saving money and understanding what you're spending it on. Budgeting can help you achieve your long-term financial goals by seeing where you can reduce spending, and then redirecting that specific money into savings. This can easily be discovered by making a list of your income and expenses, helping to create financial security by budgeting your monthly income.
You can also take a look at your spending habits and see if there are any areas where you can save. Are you paying for subscriptions you don't use? Eating out too often? Paying more than you need to for bills and services? Look for opportunities to cut back on unnecessary expenses and you will find it easier to save money quickly.
An ISA (Individual Savings Account) is a type of savings account that allows you to save money without paying tax on the interest you earn. In an ISA, you can save up to a certain amount each tax year, which is set by the government. The current limit is £20,000 per tax year, and this can be split between different types of ISAs, such as a cash ISA or a stocks and shares ISA. You can't put money into more than one of each ISA every tax year.
If you're interested, find out more about our ISA accounts here.
There are many apps and tools that can help you track your spending and save money. Some popular options include Emma and Money Dashboard. These tools can help you set and track your financial goals, and provide tips and resources for saving money.
You can also set up automatic transfers from your current account to your savings account so you don't have to remember to do it manually. This way, you can easily save a portion of your income each month without having to remember to do it yourself.
With this challenge, you save weekly rather than daily. For this, you save £1 for each week of the year. So on week one, you would save £1, and on week 52, you would save £52.
This will require other savings efforts as you’ll be putting some significant amounts of money into your savings by the end of the challenge, but the 52-week challenge is efficient as you start by saving a small amount of money. Starting to save can be difficult, especially in January and after Christmas, so these small amounts can help you achieve your savings goals throughout the year.
Saving money can be difficult for some, but with a bit of discipline and the right strategies, you can reach your financial goals. By using these tips and challenges, you can start the New Year off on the right foot and build a stronger financial future. Good luck, and happy saving!