10 refreshing financial new year resolutions to set for 2024 

2024 is approaching fast.

With so much going on in the world of finance, it’s easy to become overwhelmed – but in fact, there are still realistic, achievable goals anyone can set for the year ahead.

Keep reading to find out 10 financial new year resolutions you can actually stick to.

 

1. Give yourself 66 days to form new financial habits

According to research published by British GQ, two-thirds of Brits give up on their new year resolutions within just one month.

However, behavioural scientist James Clear says it takes an average of 66 days for a behaviour to become automatic (or, in other words, to form a habit).

As such, remember that any new financial actions you try to take might feel difficult at first. Give yourself at least two months to allow the habit to solidify – after that, these things might come more naturally to you.

 

2. Set reminders for large bills

There’s nothing worse than the feeling of dread when a bill comes seemingly out of nowhere.

When something like an annual car insurance premium (which, according to the Evening Standard, have risen by an average of 40% this year) creeps up on you, this sudden expensive outgoing might throw your budget off-kilter.

One helpful way to combat this is to set reminders on your phone or computer for the date that the funds will leave your account. You can even set them a few weeks in advance to ensure you are prepared for the expenditure.

 

3. Regularly declutter your subscription list

Instead of allowing your hard-earned money to fly out of your account every month for things you don’t use, setting a resolution to check on your subscriptions every three months or so may be constructive.

Ask yourself whether the service or product you’re paying for really adds value to your life. If not, it might be time to spring clean your direct debits and be more selective about how you spend.

 

4. Boost your pension contributions

According to a report from the Guardian, 1 in 5 Brits stopped or reduced pension contributions during the cost of living crisis.

However, in order to remain on track for later life, it is crucial to maintain pension payments, or you could face a shortfall when you reach retirement age.

As you set out your new year resolutions, it may be helpful to review how much you pay into your pension, and increase the figure where possible.

 

5. Make sure your finances are protected from the unexpected

Dwelling on what could happen if you were to pass away or become too ill or injured to work is not exactly pleasant, but a regular check-in on your protection could be life-changing down the line.

Indeed, provisions like life insurance, income protection cover, critical illness insurance, and having a Lasting Power of Attorney (LPA) document may help your family continue to cover costs if the worst happened.

As the new year comes around, checking over your protection documents and ensuring they are up to date and sufficient may be a worthwhile task.

 

6. Prepare to remortgage months in advance

The mortgage market has proved very tough for many people around the UK in the last two years. After the Bank of England (BoE) raised the base rate 14 times between December 2021 and August 2023, bringing it to 5.25%, mortgage borrowing has become more expensive across the board.

If your mortgage agreement is coming to an end in 2024, increased preparedness could be a great resolution to set for yourself. Discuss remortgage rates with a range of providers months in advance, and you may find yourself less stressed and more confident as your agreement approaches its term.

 

7. Check your credit report

A regular check of your credit report is a task that most people forget about – but remembering to do so a few times a year could improve your financial circumstances in the long run.

Remember, the following can prove damaging to your credit report:

• Late debt repayments
• Regularly using your overdraft
• Not signing up to the electoral roll
• “Bad” debt like payday loans.

Keeping these to a minimum can help you boost your credit file, which may in turn enable you to access better borrowing opportunities in the year ahead.

 

8. Review your tax liability

You might be aware that a number of key tax thresholds have been frozen, many of them until 2026.

These include:

• The Capital Gains Tax (CGT) Annual Exempt Amount, which was reduced to £6,000 in April 2023, and will decrease to just £3,000 in April 2024
• The Inheritance Tax (IHT) nil-rate bands, which are frozen until 2028
• The Personal Allowance, which is the amount you can earn without paying Income Tax, is fixed at £12,570.

As such, your tax liability could already have increased this year, and it may go up again in 2024.

So, one important new year resolution you could set is to review how much tax you’re paying and talk to a professional about reducing your burden where possible.

Doing so could help you save and invest more of your hard-earned wealth over the coming years.

 

9. Lay out a succession plan

A 2023 study from Canada Life revealed that, shockingly, 50% of UK adults do not have a will.

Although thinking about your death can be uncomfortable, it’s crucial to have a succession plan in place – even if you don’t have children or a huge amount of wealth.

By creating a will that lays out how you’d like your assets to be shared among your loved ones, you can:

• Reduce your beneficiaries’ financial stress later on
• Ensure everyone is on the same page about what they’ll receive
• Gain the peace of mind that if something unexpected happens, your family already has the documentation they need.

Biting the bullet and putting succession plans in place could be the perfect way to start your financial journey in 2024.

 

10. Contact a financial adviser

Ultimately, putting your financial goals into action can be tricky. Sometimes your best intentions can fall short of your expectations – especially if you are busy with full-time employment and taking care of your family.

That is where speaking with a financial adviser can be invaluable.

Rather than putting your goals on the back burner, with the help of a professional you can lay out a financial plan that works for you – and let it work hard in the background while you’re busy living your life.

 

Get in touch

Want to make financial resolutions that actually stick? We can help. Email info@chancellorfinancial.co.uk, or call 01204 526 846 to speak to an adviser.

If you’re already a client here at Chancellor, contact your personal financial adviser to discuss any of the content you’ve read in this article.

 

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

The Financial Conduct Authority does not regulate estate planning, tax planning or will writing.