5 Crucial Money Resolutions Every Briton Should Make This Year
As 2025 approaches, many Britons are looking to make positive changes in their financial habits. Joe Lytwyn, a personal finance expert from Viva Money, has provided five essential resolutions to help individuals enhance their financial well-being this year.
Set Realistic Savings Goals
One of the key resolutions highlighted by Lytwyn is the importance of setting achievable savings goals. Rather than aiming for lofty targets that may lead to disappointment, he advises Britons to save what they can comfortably afford.
According to Lytwyn, saving any amount, no matter how small, is a significant achievement. Whether it’s £10 or £100, every contribution counts towards building a financial safety net. By setting tangible goals like a vacation or home renovation project, individuals can stay motivated to continue saving.
The Importance of Budgeting
Creating a monthly budget is a fundamental step in managing finances effectively. While it may seem daunting at first, Lytwyn reassures individuals that budgeting can become a routine with practice.
Starting by calculating essential expenses like rent, utilities, and groceries can provide a clear picture of available disposable income. By allocating this leftover amount towards savings or discretionary spending, Britons can avoid overspending and stay on track with their financial goals.
Review Your Direct Debits
Lytwyn recommends regularly reviewing all Direct Debits and subscriptions to identify unnecessary expenses that may be draining finances. By eliminating unused services like forgotten gym memberships or streaming subscriptions, individuals can gain better insight into their spending patterns.
Taking control of recurring payments can help Britons streamline their finances and make room for more meaningful expenses that align with their financial priorities.
Understand and Improve Your Credit Score
Maintaining a strong credit score is essential for accessing favorable borrowing options. Lytwyn advises Britons to obtain a copy of their credit report to assess areas for improvement.
By consistently paying at least the minimum balance on credit cards, avoiding missed payments, and refraining from cash withdrawals, individuals can build a positive credit history. This, in turn, can lead to better loan terms and increased financial stability.
With these five resolutions in mind, Britons can take proactive steps towards securing their financial future in 2025. Lytwyn emphasizes the significance of starting small, staying committed, and practicing patience to achieve long-term financial success.
