New year resolutions can be overwhelming so why not keep 2022 simple and follow these very easy steps to getting your finances back into control.

We are all guilty of it, December is always an expensive month. We get way over excited about Christmas and then find generosity within ourselves that we never thought we possessed. The consequence?……..a very damaged bank account.

One then overcompensates by inflicting stringent rules upon ourselves in every faction of our life: finances, alcohol, eating habits and socialising. Not that I’m a pessimist or anything but how long does this usually last for 4-8 weeks max? Then we slip back into our old habits because let’s face it, “dieting” and “budgeting” is never sustainable.

So let’s fix that shall we?

A very simple thing to do, which is easily overlooked, is spend less than you earn. I covered this in my previous blog post – How to budget part 1 – and is still relevant today more than ever.

Clock how much is coming into your account and then make a concerted effort to keep tabs of how much you tap that contactless card of yours. Sometimes it helps to siphon off a part of your salary and put it into a separate bank account (e.g. Monzo) and then only spend from that finite amount.

Now that you can only spend that set allocated portion of your money each month, mentally that helps you automatically budget and become more intuitive with your spending. Any ££’s that you have leftover at the end of month means that you don’t have to transfer as much across for the following month; and so, a positive cycle begins.

I’ll keep this week’s blog post short and sweet because even spending less than you earn can be a challenging (but powerful) habit to initiate so there is no point in me pushing it.

Happy New Year everyone and let’s start 2022 as we mean to go on!

TO DO

1. Open up a secondary bank account.
2. Transfer a fixed amount from your main bank account into a new, shiny one and then only spend from this second account. A finite supply.
3. Spend intuitively – really think about each purchase as to whether it’s a “need” or “want” kind of buy.

NEXT TIME

A financial forecast for 2022.

HEALTH FACT 

1 calorie does not equal 1 calorie. Huh? Not all calories are equal. 1 calorie of sugar exerts a very different (and very fattening) effect on your body as opposed to 1 calorie of olive oil. Morale of the story – reduce your ‘added sugar’ intake. 

DISCLAIMER

This blog is for educational purposes only and should not be construed as financial advice. It is purely opinion-based.