Finance expert shares six financial New Year’s resolutions for a rewarding 2024

While a significant number focus on improving physical and mental health, it's important not to neglect our financial wellbeing. Gary Hemming, a personal finance expert at ABC Finance, shares valuable advice to help you set and achieve your financial goals this year.

Adopt a Flexible Savings Strategy:

Gary emphasises the importance of saving but advises against rigid targets. Instead of vowing to save a fixed sum like £200 monthly, he suggests a more adaptable approach. Save what you can, when you can. This flexibility helps in creating a sustainable saving habit without the pressure of strict targets, making it more likely for you to stick to this resolution.

Distinguishing wants from needs:

A critical aspect of financial prudence is differentiating between wants and needs. Gary recommends a moment of contemplation before each purchase. Ask yourself: "Is this purchase essential or just a nice-to-have?" While occasional indulgences are fine, this tactic helps in curbing unnecessary spending and fosters a habit of thoughtful purchasing, particularly useful for those who tend to overspend.

Strategic Debt Management:

Managing debt effectively is more crucial than ever. Gary suggests creating a realistic plan to pay off debts, considering the current economic challenges. He points out the potential of debt consolidation options, like balance transfer credit cards, but cautions about the standard interest rates that kick in post-promotion. It's about finding a balance between reducing debt and being aware of the potential pitfalls of certain debt management strategies.

Understanding and Improving Your Credit Score:

Your credit score is a crucial factor in financial dealings. Gary underscores its importance, noting that a higher score can lead to better terms on loans and credit cards. He advises regular checks of your credit score and implementing strategies to improve it, such as timely bill payments and keeping your credit utilization low.

Regular Credit Report Monitoring:

Gary stresses the importance of regularly reviewing your credit report. A minor error like a misspelled address can impact your score. He recommends keeping personal information up-to-date and checking for any discrepancies that might affect your creditworthiness.

Pension Planning:

Finally, Gary highlights the importance of understanding pension schemes. He advises taking the time to research and understand various pension options, considering factors like contribution levels, employer contributions, and the scheme's flexibility. This knowledge is vital for making informed decisions about your long-term financial security.

Gary adds: "As we implement these resolutions, it's also important to stay informed about different financial solutions that can support your goals. At ABC Finance, we offer services such as homeowner loans, which can be a strategic option for many. Finding the right financial tools that fit your unique circumstances is crucial for your journey towards a more stable and prosperous future. Here's to making 2024 a year of positive financial growth and smart decisions!"