OKAY, so those New Year resolutions you made three weeks ago are probably rapidly falling by the wayside - so let's get them back on track!
Over the years I have refined a framework to make my own resolutions for better finances.
Working from a framework offers many advantages, it allows you to check that you are not forgetting anything, and it forces you to make a specific plan and think about how you are going to work on your resolutions.
1. Commit to a financial hour a week
I do this over a coffee on a Saturday morning. During this hour you should commit to doing one of four things:
• Management: organising receipts, looking back through your budget, cancelling direct debits.
• Learning: about new savings accounts, about investing, about new features of online banking, reading a chapter of a book, doing something to upskill yourself.
• Researching: a stock, a new utility provider, a savings idea, a business idea, an income stream.
• Discussing: with your bank manager, with a funding office, with a mentor, or by approaching an organisation.
2. Set a quantifiable goal for the year
Resolutions fail because they’re too big, too vague, or too lofty.
I’m a huge fan of SMARTER goals, and I invite you to focus on the Specific and Measurable part of the acronym: quantifiable financial goals are the only ones with legs!
Instead of “I’d like to make more money”, consider “I would like to create an extra £100 per month this year” or “I would like to save £5,000 this year” or “I would like to go to x place on holiday for y number of days”.
3. Find three ways to make money
Brainstorm nine, then narrow your focus down to three, one in each of the following categories:
• Find a once-off source of income by selling unwanted Christmas presents, applying for tax relief (I received a cheque from the tax office just before Christmas), or negotiating your utility bills.
• Find a small sustainable income stream by freelancing a few hours a week (graphic design, app development, copy writing), tutoring, or by looking into affiliate, commission-based selling like Jamie at Home.
• Find a significant sustainable income stream: what would a second job or some form of overtime mean for your income? Could you start a self-employed income stream, like setting up a Pilates class or buying second-hand goods, upcycling and selling them through an online shop?
• If you can do all three, not only will you have more money, you will have built your money-making muscle with practice and will have much more confidence.
Susan Hayes is managing director of international financial training company Hayes Culleton.
Her latest book, The Savvy Guide to Making More Money, is out now and available in all good bookshops. Learn more at savvymoneyguide.com
