10 financial tips and goals for 2021

It’s the old age cliché, new year, new me. It’s that time of year where we think about what we want to do differently and what we want to achieve in the new year.

What better way to get your life in order and achieve a better lifestyle than by setting financial goals. After a year of economic uncertainty and with normality on the horizon, we’ve put together 10 realistic tips and goals for 2021.

1. Eliminate unnecessary spending

Most people are guilty of paying for things they don’t need, but why let it happen? You wouldn’t drop £10 on the floor on purpose so why pay for subscriptions you don’t use or let your premiums renew without comparing prices?

This January, give your finances a spring clean. Look through your bank statements and highlight the expenses that aren’t providing you with any value… you’ll know what you need to do.

2. Comparing prices

Don’t you hate that feeling when you buy something and a few days later the price has been reduced?! More often than not, this can be avoided. Before you buy a high value item, shop around and compare prices so that you can be certain you’re getting the best deal. The same goes for energy bills. It’s definitely worth comparing prices before entering into a contract!

3. Improve your credit score

If you haven’t performed a credit check in a while, it might be worth taking a look. You could be hurting your credit score without even knowing so it’s important you address your current position and learn ways to improve it. This could be simply registering on the electoral roll, using and paying off a credit card sensibly or paying your bills on time. To check your credit score visit here.

4. 30-day rule.

You know the same as us that when the price tag says what you want it to, you can convince yourself to buy anything… a new bag, pair of trainers, a new gadget. 

The next time you see a luxury item you would have otherwise bought on the spot, give yourself 30 days before you can make the purchase. If you haven’t stopped thinking about it at the end of this period then you must really like it, but for most, you’ll probably forget about this item and not feel the need to move forward with the purchase after all.  

5. Stick to your list

Did you know that there is a reason why bread and milk are so far away from each other in any supermarket? Whilst you shop around for essentials, the clever placement of products are meant to tease you into making additional purchases.

To avoid unnecessary spending, try sticking to a shopping list, set a budget and never shop whilst you’re hungry!

6. Do you use it, do you need it, would you miss it?

There’s nothing better than a good sort out. Organise your paperwork, put things back where they belong and put aside those items you don’t want or use anymore. Selling things locally has never been easier, what’s the harm in trying? See if you can make a few quid selling unwanted clothes, electronics or house decor on eBay/ Facebook marketplace.

7. Paying back a Student Loan? Check if you are entitled to a refund.

It’s easy to assume all is well and correct when your student loan automatically deducts from your wages each month. However, it has been known where repayments have been taken after individuals have paid off their student loan, meaning they were in fact owed money! 

If you think you may have overpaid your student loan, you need to ring the Student Loans Company 0300 100 0611.

8. Consolidate your debt

If you’re struggling with debt and can’t find a way to pay it off, you might want to consider debt consolidation. Simply put, it’s a way of merging your debt together into one monthly payment. Though your payment term will extend, the monthly repayment amount will be far more affordable, giving you the breathing room you need to feel financially comfortable again.

9. Plan ahead  

This year, vow to plan ahead. Jot down all your family and friend’s birthdays in a calendar so that you can give yourself enough time to get thoughtful gifts for great prices. There’s always that last minute present buying which results in an overspend or panic buy. By planning ahead, you can keep an eye out for bargains and save yourself some money!

10. Invest in yourself

One of the most important things you should do this year is invest in yourself. It may bring returns on your happiness, lifestyle and even salary. Whether it's striving to progress within your current role, taking on a side hustle or moving in another direction to get a leg up in your career, seek opportunities for self-development. Most people don’t look for new job opportunities until they’re fed up with their present role, be proactive and see what’s out there. Your dream job and lifestyle could be up for grabs.