Financial resolutions for 2022 and how to make them stick – Yahoo News

December 13, 2021 by No Comments

The first step is to spend an hour or so, perhaps on the quieter days between Christmas and New Year, to take stock of debts, savings, pensions and investments. Photo: Getty

As we wrap up the year and head into 2022, many of us will be reflecting on the year gone by and vowing to do some things differently come January.

This will likely include making some financial resolutions. In a survey of 2,000 people commissioned by Hargreaves Landsdown in September, the most common financial resolution people want to make is to pay off their debt — something one in five (20%) people want to get sorted.

At the end of last year, money.co.uk estimated that around eight in 10 UK adults will carry debt into 2021, with the most common reason for holding debt in 2020 being “normal living expenses”. 

The second most popular resolution was lowering household bills (17%), which has become even more of a priority now energy prices are soaring.

In third place was a promise to pay more into savings (15%).

The fourth most common financial resolution Brits want to make is is understanding where they stand with pensions (8%), which can often be complicated especially the more we move jobs.

In joint fifth place was starting to save and putting more into pensions (7%). In joint sixth place was protecting family with insurance and investing (5%).

Read more: Why the UK is facing an energy crisis and what it means for your gas and electricity bills

“At the moment, many of us are carrying Christmas debts, so it’s hardly surprising that paying this off is our top priority. But it’s not just about fixing broken aspects of our finances. We’re also pledging to build savings, pay more into pensions, and sort protection and investment,” said Sarah Coles, senior personal finance analyst, Hargreaves Lansdown.

She believes there are five steps that can guarantee Brits will achieve all of the most popular resolutions, and, more importantly, stick to them.

The first step is to spend an hour or so, perhaps on the quieter days between Christmas and New Year, to take stock of debts, savings, pensions and investments.

Next, work out goals for each. When it comes to debts, the goal is usually to pay down any expensive debts.

For savings, it’s building an emergency savings safety net of three to six months’ worth of essential expenses if you’re of working age.

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Source: https://news.yahoo.com/financial-resolutions-2022-debt-saving-personal-finance-115927578.html

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