While the new financial year may not be as exciting as the turning of New Year, it is still wise to set yourself some financial resolutions. Making sure you head into a new financial year with a clear head and an idea of how you want the following 12 months to look can be truly beneficial. In this post, we will detail some tips on how to prepare for the new financial year, giving you a head start on your smart money habits.
1. Consider Consolidation
Going into the new financial year on the right foot should begin with you having a hold on your finances. If you are struggling with debts, consolidation loans may be able to help. This type of loan rolls all of your debts into one figure that you pay off to a single lender each month, rather than owing multiple lenders. However, this option should be considered after all other debt recovery options have been exhausted. If you need further help, please contact the Money Advice Service.
2. Stay On Top Of Your Cash Flow
The basis for any good financial plan is a budget that helps you to stay on top of your cash flow. It is a good idea to have a full understanding of your regular income, any extra income from other projects, and your essential outgoings. It can be beneficial to see any fluctuations or areas for improvement where you could save some extra money. By getting a bird’s eye view of your cash flow, you will also be able to see if you have any areas of overspending, such as impulse purchases or eating out instead of cooking at home. Aim to cut these down before the new financial year.
3. Make Use Of Accounting Resources
No matter if you are a business owner or an individual looking to understand their finances, it is a good idea to use accounting resources. If your budget allows it, look for the support of an accountant who can offer professional advice on managing your finances and handle your finances, which will allow you to focus on other areas. You could also use sophisticated accounting software to manage your cash flow yourself from the comfort of your own home.
4. Set A Goal
Everyone has dreams about financial freedom and achieving the goals that define them as a successful person. You may have a lavish goal, such as owning the perfect house, car or travelling to a dream destination. Your goal may be less indulgent and more about never having to worry about money. By defining your goal for the new financial year and the years going forward, you will be able to keep yourself on track and see how you are progressing. You can use calculators to see how much you need to save each month to achieve your goal or find resources from others who have achieved something similar to find out how they did it.
Follow these tips to put yourself in a good position to embrace the new financial year. If you need any more support, please seek impartial help from the Money Advice Service.