7 new year resolutions for saving money in 2024

The Christmas festivities are currently in full swing and as we celebrate the final weeks of 2023, it’s natural to ponder our new year resolutions. 

Popular resolutions normally revolve around doing more exercise or learning a new skill, but there is also an opportunity to think outside the box in 2024. 

It’s been a hard few years, and many people in the UK have struggled with the cost of living crisis, so our financial wellbeing is more important than ever before. Therefore, maybe now is the time to make money our priority and create some stability with new savings habits. 

Here, we look at seven new year resolutions that might help you to save money during the next 12 months. 

1. Set achievable savings goals 

This resolution is essential as it sets the tone for the rest of the year. Managing money is not an easy task, so it’s important that you don’t set yourself up to fail. Think about your short and long-term savings goals, whether that is saving for a house deposit or putting some money aside each month so you can treat your family to a summer holiday. Consider how much money you’ll need to save to achieve these goals and align it with realistic timeframes. 

2. Create a realistic monthly budget

Once you’ve set some savings goals, it’s time to think about budgeting. If you normally live from payslip to payslip, creating a budget is a good way to refine spending habits and make sure you have some money leftover at the end of the month. To do this, assess your salary against fixed expenses and additional spending. This will help you to find areas where you can cut back and allocate money to your savings goals. A monthly budget can also be adapted, so regularly check your expenses and amend as your spending habits change.

3. Start a rainy day fund 

A rainy day fund is something everyone should have, so it makes a great resolution if you haven’t got one yet. Life is unpredictable and you never know when you could be faced with an unexpected bill, so having an emergency fund is great for peace of mind and relieving any financial stress. To start a rainy day fund, try saving a small amount of money every time you’ve been paid. This fund will also mean you’ll be less likely to dip into your long-term savings pot for short-term needs.

4. Move money out of low-interest accounts

Now, this resolution is something that doesn’t require you to save more money but enables you to be savvy with the money you currently have. In the new year, make a promise to check your bank accounts - whether it’s a savings account or current account - and track the interest. If your money is currently sitting in a low-interest account, then compare accounts to find a better deal. Some savings accounts are currently offering interest rates above 5%.

5. Explore all types of savings accounts 

Speaking of savings accounts, another resolution could be to explore all the different types of accounts available. For example, you might have an instant access account, but could you be getting more for your money in a notice savings account? Alternatively, a fixed-rate bond works well if you have a lump sum to save and don’t need to access the money for a set period of time. This type of savings account currently has competitive interest rates that are guaranteed for a fixed term.

6. Reduce unnecessary expenses 

One of the ways to save more money in 2024 is to reduce unnecessary expenses. Impulse purchases are the biggest blocker to a healthy savings pot, so a resolution to only buy what you need will give a big pay off by the end of the year. If you aren’t an impulse buyer but still keen to reduce expenses, take the time to audit your bank statement and cancel any subscriptions you might not need anymore.

7. Expand knowledge of personal finance 

Finally, if there’s one thing you do next year to enhance your financial wellbeing, then maybe it’s expanding your knowledge of personal finance. Understand the basics of budgeting and financial planning and this will help you to make suitable financial decisions whatever life throws at you next year. 

If you manage to stick to any of the resolutions above, don’t forget to celebrate these new financial milestones. Whether it’s sticking to your budget or resisting an impulse purchase, celebrate these achievements as it will help to reinforce positive financial habits and motivate you to continue focusing on your financial wellbeing.