Financial New Year's Resolutions Everyone Should Consider

It’s a new year, which means that it’s time to set some new financial goals. It’s a good idea to add some financial goals to your ‘to do’ list for 2023, such as improving your credit score or reducing your debt. Once you have a handful of financial goals in mind, it’s a lot easier to improve your finances. Below, we have listed some of the key financial resolutions that everyone should consider setting.

• Save More Money - It won’t come as a surprise that saving money is a resolution that a lot of people set. This can be done in a lot of ways, such as by setting up automatic transfers into a savings account or by cutting back on unnecessary spending. You might even consider changing to a new savings account, to ensure that you are using one with a good return on investment.
• Improve Your Credit Score - If your credit score has room for improvement, make it a priority in 2023. You can improve your credit score in a variety of ways including paying your bills on time, paying your bills in full, paying off an outstanding debt and not opening any new accounts. Cutting back on your spending can also help.
• Create a Budget - A lot of people find a budget to be restrictive, but it’s a great way to track your spending and to understand what your money is being spent on each month. With a budget, it’s easy to see what you can afford, and what you should cut back on. Creating a budget is simple, and it doesn’t need to be overly complex. Simply write down your fixed expenses - such as rent, mortgage and bills - and then your other outgoings, such as your groceries and socialising costs.
• Pay Your Credit Card Off - The majority of people have a credit card, and a lot of cardholders have a significant balance that needs paying off. In 2023, set yourself a goal of repaying as much as possible. Having a good credit score relies on you having a good credit card payment history, which is why aiming to pay your credit card balance in full each month is key. This will reduce your debt, give yourself more credit to utilise and reduce the amount of charges you have.
• Avoid Getting Any More Credit Cards - Though it can be tempting to open another credit card, especially if you are planning to use it to pay off another one, this is rarely the right thing to do. There is no ‘one size fits all’ answer in relation to how many credit cards you should have, but having too many can be difficult to responsibly manage.
• Check Your Credit Score Often - There are a lot of ways you can check your credit score online, some of which will even send you an updated credit score every month. This will ensure that you are always on top of your credit score and aware of the improvements that could be made.