The new year is very nearly here, which means it’s time to set some resolutions and make plans for the year ahead. Setting financial goals for 2021 is a great way to kick-start your year. Whether you want to get on the property ladder or start saving for your pension or rainy day, here are some great ways to plan your finances in 2021.
Set a financial goal
Personal finance varies for every individual. As such, all of our goals are unique. No goal is too big or too small, the important thing is to set one. This could be clearing off your Christmas debt by March, saving a certain amount for a house, or creating an emergency fund. Whatever your goal, set it so that you have something to work towards.
Review your spending habits
We all enjoy a treat from time to time, whether it’s a takeaway on a Friday night, or a new outfit for your birthday. But look at where your money is going and consider if you could decrease your spend or even cut it out altogether. There will always be something you can cut back on.
For example, are you partial to a morning latte or a meal deal for lunch every day? If you spend £3 a day on lunch, this adds up to £60 each month. Preparing your meals at home can cut costs, while using a reusable cup in your local Starbucks, Pret a Manger or other cafe can also save some pennies (as well as help the environment).
Find potential hidden pots of money
Did you know that there is probably some hidden money lying around your house? You might not have spare £5 notes lying around — but you never know! If you’ve been given any unwanted Christmas gifts (or gift cards), selling them on eBay could earn you some extra money. You could also try to sell items on Facebook, which also has its own selling platform.
It is also worth spending the time reviewing your paperwork to see if there is an opportunity to reclaim any money from lending providers. PPI – Payment Protection Insurance- reclaims are still a think in 2021 and you could be owed thousands of pounds back from banks and lenders who have miss sold this, often unnecessary, insurance. It is more difficult now that the deadline to claim direct has passed but there are providers that can help you put in a claim if you are entitled. Once you’ve looked over your paperwork, contact a specialist regarding next steps.
Start saving from day one
You might be recovering from a heavy night on 1st January, but you shouldn’t use this as an excuse. The New Year is a big opportunity to start saving and moving towards your goal. There are some fantastic saving plans you can start on the first day of the year and do throughout the year.
Take, for instance, the 1p challenge. It’s simple — on 1st January, save 1p; on 2nd January, save 2p, and increase by 1p every day for the whole year. By the end of the year, you’ll have saved over £600.
For an even bigger pot of money, save £1 on Monday; £2 on Tuesday and so forth until Sunday, when you put by £7. Doing this every week will save you £28, and doing it every week in 2021 will net you a tidy sum of nearly £1,500.
Saving in small increments such as this can make it easier if you struggle with saving.
Hunt for deals and be aware
Here are some quick and easy things to be aware of that could help you earn or save money in the upcoming year:
- Most supermarkets will have a reduced section — supermarkets will start to roll down their prices towards the end of the day, so hitting your local supermarket at around 7pm means you could find some excellent savings.
- Banks offer switching bonuses — banks want your custom and some will pay for you to open an account with them. The current account switch guarantee makes this easier.
- Look for vouchers and discount coders — the internet is full of discounts available to use online and in shops and restaurants. Voucercodes lists discounts for some big brands while installing Pouch on your browser will highlight discounts on websites you browse. We also have our own offers, discounts and deals page that is worth checking out too.
Set your goals, cut back on luxuries, sell items on eBay and hunt around for great deals — they really are out there. Doing just one or more of these things can help your personal finance in 2021.
This post was created in collaboration with Canary Claims.