The UK’s challenging economic outlook for 2024 means being financially savvy is more crucial than ever. If you’re feeling stretched right now, you may want to embrace certain lifestyle changes to positively impact your financial health.
Thankfully there are a range of smart adjustments you can make to benefit your bank balance as well as your personal well-being. Below, discover five key areas you could look to reassess this year.
Downsizing your home
This one may seem obvious, but for many people rent or mortgage payments are the largest monthly expense. So if your living situation is beyond your means right now, downsizing could help you significantly cut costs.
Smaller properties typically incur lower utility bills, taxes and maintenance costs, with cheaper areas also freeing up substantial amounts of money for your savings.
This option is quicker and easier for renters than homeowners, of course – but if you’re in the latter camp, that doesn’t mean you should rule it out in the long term.
Embracing sustainable transport
How you choose to get around can also have a big impact on your personal finances. If you’re partial to expensive cars and flights or regular taxi journeys, can you make more sustainable choices for your bank balance and the planet?
That could mean trialling new public transport options or cycling or walking more when the weather is on your side, boosting your fitness in the process. And if you sold your car, you’d still have flexible options if you need to drive occasionally, such as temporary car insurance for road trips.
Home cooking
Are you prone to splashing your cash on meals out because you haven’t prepared anything? If so, discovering your culinary flair will help to significantly reduce your food expenses.
It’s wise to plan your grocery shopping in advance and choose mindful options where possible, such as supermarket own brands and healthy, inexpensive ingredients like beans and frozen fruit and vegetables.
There are lots of places to find free recipes ideas too, from Instagram and TikTok to supermarket cards and magazines.
Investing in health and fitness
Can you intertwine your financial health with your physical and mental well-being? It’s no secret that being active can benefit your life – the NHS calls it a miracle cure – but that doesn’t mean you have to spend a fortune on it.
Budget-friendly options such as local parks and home workout videos might make more sense for you right now than costly gym memberships, while still offering the results you’re looking for.
When it comes to your broader health, your employer may offer benefits you don’t know about, such as free or discounted private medical care and insurance and mental health support.
Prioritising financial education
Enhancing your financial literacy this year could pay dividends, helping you make more informed decisions about day-to-day spending, savings and investments.
For example, understanding savings goals and the best places to keep your money could help you build up more than before. Getting to grips with your credit score may improve your options if you’re planning to borrow money soon, while an emergency fund provides a safety net when disaster strikes.
There are plenty of free, high-quality resources covering these topics online such as MoneySavingExpert.
Could you stand to make significant changes in one or more of these areas this year?
