We all have good intentions for the New Year. Maybe giving up alcohol for “dry January”, being more ethical with our diets for “Veganuary” or perhaps just joining the gym with a focused 2020 mindset. Either way it’s a fresh start to get things back into order after the chaos and overspending of Christmas.
So, we set ‘New Year’s resolutions’ to try and improve ourselves but how often do we actually stick to them long-term? Most people will have fallen back into their old habits by February. (As they say old habits die hard). Sometimes, it almost seems like resolutions are just meant to be broken.
Going cold turkey (pun intended) with anything is much more difficult to maintain. Sometimes just by reducing our alcohol intake or cutting down on certain foods, it can help us keep up better habits in the long run. The same could be said of our finances. If we plan a bit now, we will be in a stronger position to enjoy the benefits later.
Everyone complains about how much weight they have put on over Christmas but what about your finances; are they in good shape? Have you thought about how to make your money work harder for you this year? And are you prepared for the future? If the answer is no then maybe it’s time to give them some attention and a plan of their own.
Here we look at five things to consider for the new year and turning over a new leaf for your finances in 2020:
1) Review your spending habits
Sometimes we are quick to focus on any big financial commitments in our lives, but the small ones can quickly add up too. To give an example and put things into perspective, did you know that over a career spanning around 40 years, we could spend more than £30,000* on daily takeaway coffees? Just reducing this to one coffee every other day could alone save more than £10,000.
*Approximately 252 workings days – 40 years – £3.00 average coffee = £30,240
In 2020, it would be a good idea to think about where you spend your money and what little savings could be made here and there to reduce any unnecessary spending habits.
2) Shop around for what suits you
Most people don’t shop around when making financial decisions which could prove costly in the long run. Most investment advisors and wealth managers should be open to providing information with complete transparency on their fees and charges. You should compare and contract providers to ensure you are making informed decisions with your money.
3) Make the most of any free help
Many of us are not confident or experienced when it comes to managing our money but there are some free services to help us make a start. For example, during the online application with us here at Rosecut, you are able to utilise our free financial planning tool to gain a clearer picture of your overall wealth and an idea of projected gains for the future based on your financial profile. Why not give it a try here?
4) Utilise online tools to help you manage your money
Some digital investment providers and wealth managers now offer online services to help you make the most of your money, whenever and wherever you want. These should be available to you 24/7 at the touch of button to ensure accessibility and of course, peace of mind, although bear in mind this should be a long term commitment and daily tracking is not advisable.
5) Keep calm during periods of volatility
Continuing economic and political uncertainty may cause investment volatility in the year ahead. In 2020, it would be a good idea to ease your nerves by reminding yourself that the value of your investments can go up as well as down, and many investments are designed for the long term. Try to avoid any short-term panic.
We all have great expectations for the future. We constantly set ourselves goals and aspire for greatness, however we rarely think properly on how to get there. So start the new year in the right way and do something your future self will thank you for later.
“A year from now you will wish you had started today.”
As ever, please remember: Past Performance is not a reliable indicator of future returns
Happy New Year from the Rosecut Team and don't forget to subscribe to our newsletter further below.