The Kuflink Peer to Peer Investor Blog

Publish at: 2022-01-18 16:21:58

Smart New Year's Resolutions To Save Money

Christmas is a big event that can wash out your finances and cause a great impact on your budget. If the holiday season hit you harder than you hoped, we have some tips that will help get you back on track. 

January is the best time of year for bank account replenishment and eliminating last year’s bad money habits.

All the below is for information purposes only. Please always seek professional advice before acting. 

If your resolution for the new year is to save money, the following are some ways to do it:

Make it fun! Take on a Money Saving Challenge

It's easy to think of saving money but actually doing it can be hard.  However, if you think challenges are fun, there are some money-saving tips that can make all of this a lot easier - and you should find yourself doing well out of completing these challenges.  

The first challenge for the new year is the 1p saving challenge. As the name suggests, you have to put away a single penny. On the next day, you have to put away 2p, 3p on the third day and so on. Using this way by the end of the year you can save a total of  £667.95.

Don't worry if you've not started yet, and it's already into the new year.  You can easily catch up by adding totals of the days you missed – so if you begin on Wednesday 20th January, simply add £2.10 on your first day, then resume the challenge as normal on 21st January, when you'd save 21p.

Save money on bills in the January sales

You can see that standard retailers cut the prices at the start of the year and you can also get some marvellous deals on your bills in January sales. 

Some great deals are offered on broadband connections and you do not need to worry even if you haven’t renewed your contract. At the start of the new year network providers are keen to get maximum customers on board so if you find a good deal, it will be worth asking your provider if they can buy out your existing contract.                                   

The same is in the case of mobile phone contracts. Even if your end date is way off, there is no harm in calling a new network and asking them to buy you out of your current contract.

However, if the new provider does not agree to buy you out of the current contract, you should talk to your existing provider to see if you can get a better deal.         

Simply call your provider and let them know about a deal that you have seen and that you are thinking of leaving the current contract, typically they will try their best to keep you on board. 

Get cheap insurance for your new gadgets

If you found top-end gadgets under your Christmas tree, you should make sure to keep them safe. Check what is covered by your home contents insurance, when it will and will not pay you. If your new gadgets are not covered for damage, loss or theft you may need extra protection. 

You can consider getting cheap mobile insurance through a third party insurance provider or even get it included with your bank account.

Exchange Any Unwanted Gifts

Exchanging your gift does not mean that you are ungrateful because it is always lovely to receive gifts. However, you may receive a present that is of no use for you. The first thing to do is think about how you can make use of such presents. For example, if someone gives you a jumper that you do not like, you can keep it and wear it while cleaning to avoid bleach stains on your favourite dress.

But if you cannot find any use for that unwanted present, it is time to think about selling it. You may find some guides on selling your clothes online or get the maximum money through eBay, but you can also go to the Facebook marketplace or sell it directly to a friend.  

Alternatively, it can also be possible to get a refund from the place where this present was bought. Most shops take back the present only if they are faulty but if you have a receipt they will probably refund the money or allow you to exchange it. You should check the returns policy and understand consumer rights to know whether you can return something or not.                               

Start Planning Your Holidays

The back to work blues can be hard so it's great to start planning and saving now for holidays abroad or festival fun. 

If you continuously save money, you should never get out of budget and can enjoy each event. You can save money for your holidays and would not miss the extra cash. Do not think that it is too early to look for cheap travel deals as it is January - be mindful that the best ones sell out first so if you find a cheaper deal do not let it slip through your fingers.

Use cash back site when you buy

If you are not already using cashback sites it is worth considering. By using such sites for online shopping you can save money and it is not difficult to do. When you buy things through these websites you can get cash back on your purchases from famous brands and even cash back at the supermarket.   

Always check for deals and discount codes

Along with searching for cashback on your shopping, it is also beneficial to look for better deals elsewhere and for discount codes before making any purchases. 

If you think that you did not put a lot of effort into finding the best deals last year, it is the perfect time to make a change. It may take a long time looking around for a better deal but it could help you in saving money this year.  

The same thing applies when you are thinking of eating out. Restaurants also offer discounts that are also advertised online. You must take a look at these deals before going out for a meal. You can get this information about such deals on Facebook pages of restaurants.                       

It might be hard to set up a new year's resolution and keep up with your targets. The typical time period for which people follow their resolution is about three and a half weeks. With these five goals above you can make lasting changes in your money-saving habits. 

By setting your financial goals, making resolutions and sticking to them you can move towards a healthier financial future.   

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All the above is for information purposes only. Please always seek professional advice before acting. 

*Capital is at risk and Kuflink is not protected by the FSCS. Past returns should not be used as a guide to future performance. Securing investments against UK property does not guarantee that your investments will be repaid and returns may be delayed. Tax rules apply to IF ISAs and SIPPs and may be subject to change. Kuflink does not offer any financial or tax advice in relation to the investment opportunities that it promotes. Please read our risk statement for full details.

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