5 smart money moves to help you beat the winter blues
Monday 20 January is Blue Monday, which means that most of you will have already given up on any well-intentioned resolutions you made.
Don’t feel too disheartened though, because studies suggest that 88% of people who set new year resolutions fail in the first two weeks of January. So, you’re in good company.
Unfortunately, January can be miserable and sticking with a resolution that doesn’t immediately benefit you can be a drag. Who, for example, came up with the idea of “Dry January”?
Hats off to any of you managing to stay off the alcohol, but surely staying away from the pub would be easier during the brighter, occasionally warmer days of spring.
If you feel like January sets you up for failure before you even began, fear not because there are some smart money moves that could make you feel better fast. Plus, your future self will thank you for using the cold, grey, dismal days to improve and tidy your finances.
So, forget tired old new year resolutions and follow these five positive steps to help you maintain and boost your financial wellbeing now and throughout 2025.
1. Start paying yourself first
“Paying yourself first” is a simple yet powerful habit that could make it easier for you to secure the future you want.
Embracing the idea of paying yourself first could help you to save more by reversing the way you approach your budget, and making saving a priority.
Instead of saving whatever you have left at the end of the month, contribute a regular amount to your savings each month, as soon as your income lands in your bank account.
In other words, pay yourself before paying bills, buying essentials, or spending on luxuries.
By adopting the simple habit of paying yourself first, you may find it much easier to build financial resilience and work towards your goals.
2. Declutter your budget
Never have money left over? Review your monthly direct debits. Check you still use all the services you’re forking out for.
Do you still read the magazine or e-zine you signed up to five years ago? Do you still watch all the streaming services you’ve subscribed to? And what about that gym membership you’ve been paying for and never using?
Be ruthless. If you haven’t made use of it in the last three months, cancel the direct debit and save the money instead.
Read more: 5 simple budgeting tips to help you tackle the cost of living rise
3. Set up a regular investing habit
With a firm intention to pay yourself first and a tidy budget, you should be all set to start investing a small sum on a regular basis.
Regular investing allows you to drip feed small sums into the markets every month. You can invest as little as £50 each month.
Where possible, invest a set percentage of your income each month. As your income fluctuates, so too can the amount you’re investing in the markets.
Drip-feeding your money into the stock market means you end up buying shares at different prices. When prices rise, your money will buy fewer shares. But, when prices drop, your money will go further and buy you more. This is called “pound-cost averaging” because, over time, you end up buying shares at the average market price.
You can invest small sums into an ISA, your pension, or a general investment account. Get in touch to discuss which option may prove most tax-efficient and appropriate for you.
4. Simplify your finances
While you’re getting on top of your financial affairs, if you’re having to wade through multiple sets of accounts and statements from investment or pension providers, it may be time to take stock and simplify things.
For example, if you’ve changed employer many times throughout your career, you may find that you’ve also collected various pension plans along the way.
Consolidating multiple pensions into one plan will make life far simpler and you could find that you also save money. Instead of paying fees to a number of pension providers, you might find that bringing your pensions under one plan is also easier to manage.
Having all your retirement savings in one pot could also make it far simpler to understand how much you’ve saved and what this may mean for your income once you retire.
Just remember not to tidy too far – diversification is a key principle for investment success. Get in touch and we’ll help to ensure your investments are aligned to your time horizon, risk tolerance, and long-term goals.
Read more: Asset Allocation and diversification in your investments
5. Make a date with your financial planner
An essential first step towards financial wellbeing is to have a financial plan. Rather than leaving your financial future to chance, having a plan can help put your dreams within reach.
Working with a financial planner can help you define your goals and understand what you need to do to achieve them. Maintaining a strong relationship with your planner can also help make sure you stay on track to reach your financial goals.
So, if you haven’t sat down with your financial planner recently, make a date to catch up with them today.
Get in touch
If you’re keen to boost your wellbeing and take more control of your finances in 2025, we can help. Email info@logicfinancialservices.co.uk or contact your adviser.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
Workplace pensions are regulated by The Pension Regulator.
The value of your investments (and any income from them) 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.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
