ver set your New Year goals with the best intentions but when Jan 17 comes around you back to your old ways and those resolutions are already long forgotten, if YES then you're not alone.
January can be full of good intentions, but the restrictive nature of “paying off your credit card debt in record time” or “saving more than you have ever been able to save before”, all start to wear thin by February.
Financial resolutions need to be “SMART” goals in order for you to have a better chance of achieving them. SMART stands for – Specific, Measurable, Attainable, Relevant and Time-Based.
In Paul J Meyer’s 2003 book “Attitude is Everything: If You Want to Succeed Above and Beyond” it is broken down as follows:
The goal needs to be clear and specific. Can you answer the following questions
a. What do I want to accomplish?
b. Why is the goal important?
c. Who is involved?
Work out what you will spend on holidays over the next 12 months.
Don’t forget to include weekends away, hen dos, and spa breaks. Make sure that your calculation is comprehensive and includes the cost of insurance, spending money, airport purchases etc.
Take a look back to previous years to work out what you have spent in past years to check that your figure is accurate.
When you know what you will spend in the next 12 months, divide this number by 12. This is the amount that you should then be set aside each month into a separate holiday account to prefund your fun.
So, for example, let's say you are going to spend 2,750 in total, you then need to save 229.17 each month. You could use a regular saver that allows withdrawals for holiday account.
We all need a financial safety net. Ideally this should be 3-6 months’ worth of outgoings. This money is there to protect you should things not go financially to plan. The safety net stops you having to tap into your investments at times when the markets mean that it is not a good time. Emergency cash buffers should be kept in an easy access cash buffer. Here are the top accounts for you to consider.
If you are still building up your emergency fund you can currently get a better rate with a regular saver account. These are accounts that are designed for you to pay in regularly every month. To get access to the best rate, you will need to already have an account with the bank.