January is a good time for setting goals or committing to New Year’s Resolutions in our personal, business or financial lives.
But all too often these goals can seem daunting, so we quickly give up, or perhaps never get going.
Our approach, as independent financial planners, is to adopt the ‘one small action’ method, which means you take one step at a time, setting small, achievable goals.
If you apply this to your financial life, your goal might be to manage your budget better, or to have a better understanding of your finances. Here are some small actions you might like to take.
Look carefully through your bank and building society statements to get an understanding of where your money goes. Pay special attention to direct debits and standing orders. Do you need them all? Are you paying for services or subscriptions you no longer use? When do your contracts finish with, for example, home insurance, electricity, or phone? Make a note on the calendar and shop around ahead of the renewal. When you are renewing, look at price comparison sites.
List everything you own (these are your assets) then list all your debts (taking interest payments into account). Then you should be able to start working on a repayment strategy.
Take a good look at your spending. What are essentials and where can you make savings? Then automate savings at the start of the month. Don’t wait to see how much is left over to save – there won’t be any.
We hope these one small steps are useful. Another small step – if you would like to talk about financial planning – would be to contact our friendly team. Email email@example.com, or call our Cirencester office on 01285 708444.
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