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New Year's Resolutions You might benefit from

This time of year, many people are setting their new year’s resolutions. One that many people chose, but never seem to complete, is sorting your finances out. It can often be much easier and quicker than many people believe to sort out their finances and should lead to a healthier bank balance.

So, "This year I will"...

1. Spend less than I take home -

This is an absolute must do, if you want to be in control of your finances. It only takes a few minutes to write out a budget. While the harder part is sticking to it, if you aim to be as realistic as possible you won't feel like you're missing out but you will be able to make your money go a lot further. You can find a FREE Budget planner template on my website.

2. Stop making huge profits for my bank

Whether you're shelling out for a bundled current account you don't benefit from, earning a poor rate on your savings, or racking up overdraft fees, the good news is for the most part you don't need to; all it takes is a bit of reorganisation.

3. Clear my debts

This can often be easier said than done, but getting serious about clearing your debts is a must for healthier finances. Start by writing a list of how much you owe and to who and find out how much you're paying in interest on each. Could you use savings that are earning a low rate to pay off borrowing at a much higher rate. Or could you make any of your debts cheaper by switching to a better deal. Then prioritise the repayment of your debts so that you focus on clearing your most expensive debt first and then work down your list.

4. Sort my savings

It's always a good idea to have an emergency fund sitting in the bank just in case you need have an unexpected expense. If you're already someone who saves regularly, that's great, But, if you haven't checked what your savings are earning for a while it's quite possible its very low. If you are not a saver, then start now and often start small. Even just a few pounds a week, left untouched will soon build up your savings.

5. Review my insurances

It is really important that any policy you have is good value for money. This doesn't necessarily mean that the cheapest policy will be the best as insurance is only worth the cost if it will pay out when you need it to. I hear of many people cancelling policies or reducing the cover to save a few pounds that could cost them hundreds or thousands of pounds in the event of a claim, if they find themselves uninsured for that event.

If the insurance policies you have in place appear lacking in quality or too expensive then shop around for a better deal so that you find a policy that gives you the cover you need for the best price possible.

6. Plan for the future.

For our economy, the future is still going to be bumpy, so it's a good idea to think about how you would cope if your job prospects became uncertain. Also, how would your nearest and dearest cope without you, morbid as it seems. So if you haven't done so already it's a good idea to look at sorting out some life insurance and either making a will or reviewing your existing will if your circumstances have changed.

Adopt a few (if not all) of these new year’s resolutions, should improve your financial position.

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