Making your money work for you in 2010

If you want to get your finances in check in 2010, there is no better time to start than right now. If you wait, it won´t happen, so start to act on those new year´s resolutions as  soon as possible and you are much more likely to stick to them.

Everyone´s household strategies are different, but whichever way you decide to ring the changes this year, stick to a simple plan and you are more likely to succeed. If you are already struggling with debt, you may need to seek the help of a regulated debt help company in the UK, but if you are simply trying to tighten your belt, here are 12 ways to stay out of debt in 2010:

1. Work out a budget

Work out a strict monthly budget and stick to it. Withdraw money from your bank account each week to last until the following week and stop spending on credit cards. You are much more likely to overspend if you are handing over a credit or debit card for your purchases than if you are passing over hard cash. Leave the cards at home and only spend what you can afford each week.

2. Start small

Start to work out your resolutions bit by bit, and if one of your promises for 2010 is to start saving money each month, begin with a small, affordable amount which will soon add up. After 3 months, if you feel you can add to this, then do so, but don´t set yourself an unachievable target or you will stop saving altogether. By creating a saving habit, it will stand you in good stead for the future, even if you are saving slowly.

3. Flexibility and good habits

Flexibility and good habits go hand in hand so don´t set yourself unachievable targets. If you have a few different resolutions, start small with all of them and don´t be too hard on yourself if you fail to achieve a few of them. Leave time for a few pleasures, such as a meal out or a glass of wine at the weekend, and don´t cut out the luxuries completely.

4.  Check out the paperwork

Check out all your paperwork which relates to loans, bank statements and outgoings over the past few months, and look where you can save money. You have to start somewhere, so even by paying off a bit extra from that credit card debt, or reducing your monthly shopping bill by 10% is a good beginning. Cut a little off all your outgoings and you will be amazed how much money you can save over 6 months.

5. Keep a record of the results

Paperwork is not always full of bad news, so when you actually save some money you should pat yourself on the back and keep a record of it. Measure your success in achieving tasks by keeping a record of all savings you make over the course of a month, and if you manage to stick to a budget for 3 months, treat yourself to a reward.

6. Bad behaviour triggers

If you are a ´serial overspender´, you will be aware of triggers that send you on a downward spiral of debt and despair, so watch out for these. Never arrange a budget or a spending plan when you are stressed or busy, as your plans can collapse if you don´t tackle them when you are in the right frame of mind. A flexible plan can help, but you need to work it out when you are in the right mindset.

7. Carry on past January

After a month of over-indulging, Christmas parties, eating, drinking and merrymaking, January seems like the perfect time to take the plunge and sign up for gym membership or to start jogging through the icy streets in a vain attempt to get fit. If your new-found enthusiasm only lasts for a few weeks, however, you may as well not bother. Most gyms will report a massive influx of visitors straight after Christmas, only to find their client levels are back to normal after 3 months. You need to change your resolution into a habit for it to really make a difference to your health and wealth in 2010, and there are plenty of ways to get healthy on a budget, without joining expensive gyms.

8. Spread the word

If you have a new year´s resolution, spread the word, as you will be much more likely to stick to it if other people know about it. If you are still to make some resolutions, try to get a friend to make the same one as you, such as to stop smoking, as you are much more likely to succeed if there are two of you making the effort and you have each other for moral support.

9. If at first you don´t succeed ......

If at first you don´t succeed, then try, try again. After all, there is no reason why resolutions have to be made and kept in January but not the rest of the year. If you have given up alcohol, cigarettes, chocolate or you have simply vowed to save more money, a small slip up does not mean instant failure. Start again and keep trying until you are in the habit.

10. Change your ways now

If you normally go out every weekend and spend shed loads of money on booze, food and entertainment, don´t wait another month to start cutting back. Do it now! If you are forever saying: ´I will stop drinking after my mate´s birthday´ or ´I will cut back after my holiday´, you are not likely to ever succeed. Change your ways now and if you have already planned a night out with plenty of booze and food, change the whole concept of the evening. You don´t have to change your lifestyle completely but reduce the amount of times you go out on the town each month and you will soon reap the rewards.

11. See your success

In order to succeed in most things, you need to visualise your success, and imagine it is already happening. This will help you to ascertain whether your goal is realistic, and you will also be able to see after a few months if you are getting closer to it. Believing your success is already true, may put a ´self help book´ spin on proceedings, but a positive attitude will undoubtedly help your frame of mind, and it won´t cost you a penny.

12. Stop making excuses

It is easy to talk ourselves out of things we don´t really want to do, and to make excuses for not going to the gym, for just having one more beer, or for laying on the couch all day watching TV when we have promised to take the kids to the park, but we only have ourselves to blame if we can´t be bothered to take our resolutions seriously. Sticking to a routine, a keep fit plan, a strict budget or a no-drinking resolution can and will be hard, but if you persevere you will discover a new, happier and healthier you by the end of 2010.