As we take our first steps into another new year, many people may already be feeling the pinch, especially after Christmas and the new year celebrations. Due to this, you may want to consider adapting some of your current spending and saving habits. Not only could this allow the rest of the year to pass a bit more smoothly, but it may mean that, at the start of January 2023, you do not have the same struggles that you do right now.
Making financial changes can be something that involves the whole family. If you have problems regarding saving money or are more than happy to spend now and then think about the consequences later, your child may follow suit. Therefore, you might want to financially prepare with a junior ISA, to help teach them the benefits of saving, and that there are better ways than the ones that you have previously exhibited.
You can put small, or large, lumps of money into this account, depending on how much excess money you have in that particular month. It can also be a good idea to see if your child will sacrifice a small portion of their pocket money into the account as well. This way, the habit of saving can be normalised, and something that they simply grow up doing.
To further keep money in your pocket, you may also want to let go of some of those little spending habits that you do on a daily basis. Smoking, drinking frequently, and even buying a coffee during your commute can all add up. Ditching that morning coffee, or taking your own, could see you saving around £1000 a year, which means greater savings by simply changing your habits. This could involve a bit of work on your part, but, with the right frame of mind and goals in place, you could help both your body and your bank balance.
You may also be hurting your finances, and your mental health, by comparing yourself to others. When you look at social media, you may feel jealous of those who have more than you. This might involve a nicer haircut, designer clothes, or even pictures taken in a tropical location. Although it can be nice to fantasise about having them yourself, some people may not be able to control the impulse to spend money on things that are popular, or that they have seen others use. Taking a break from social media, and addressing any insecurities you might have, could help to reduce the amount of impulse buying that you partake in.
Saving money doesn’t mean that you need to harshly cut back on the things you enjoy. Instead, you may want to think about removing the aspects that have an adverse effect on your mental or physical health, and even adopt some great money habits that can allow you to be a good role model for your children. Try starting the new year on the strongest financial foundation and consider these tips!