Can you be SMART in 2008?

It’s a New Year, so its time for those New Years resolutions.

We all have things we would like to change in 2008, maybe paying off a store card or credit card, starting a savings plan or finally looking at those mounting debts and taking some action to tackle them. But we all know that New Years resolutions sometimes only last until the last Christmas card has been recycled! So make it different this year, make 2008 the year that you make changes that could make a difference to the rest of your life.

We know it is easier said than done, and quick fix solutions just don’t work. So we are looking at making changes to lifestyle and financial habits that will have long term benefits.

Using a S.M.A.R.T approach could help…

Read below to find out how to make a S.M.A.R.T start to your new financial lifestyle.

S - Is for Start

Making a budget is the best place to start. This will show if you have money to save, or just enough to cover your expenses, or that you are spending more than you have coming in.

*****If it’s the last one, get help now!!*****

Start looking at where & why you spend money. A weekly or monthly diary will allow you to see how you spend (e.g. ATM withdrawals, switch or debit card or credit cards.

You may be surprised at the results, but it is a really useful exercise to start looking at your relationship with your money.


M – Is for Making Changes

Start with the small changes. Check your bank account and look at your direct debits.

Are there any old direct debits that you have forgotten to cancel that are still being paid? You need to know exactly what you are paying out on direct debits & standing orders and for what.

Shop around for the best deals on utilities, phones, and insurances (see http://www.uswitch.com/).

If you are using credit and feel that you are managing all the payments ok, check that you are getting the best deal for the type of borrowing you use – check out money saving expert .com

Have you been charged for using the ATM? Either use a free one, or if you have no alternative, limit your visits to the ones that do charge.

Look at the ways that you can save money. Most of these are painless but do require a little organisation:

Buy pre paid travel cards –they normally save you a little money on buying your fare daily. (It also avoids the deadly disappearing ten pound note -Break into it to get change for the bus, by the time you have bought a newspaper, drink and a snack for breakfast, you have spent £10.00-and that’s before Lunch!!).

o Have breakfast before you leave for work. And no – the “I haven’t got time “excuse will not work. You need to get up a bit earlier! If you don’t like to eat in the morning then make a snack to take for later in the morning. Make sure you have something that you like. If you hate cereals then don’t have them, a cooked breakfast can be just as quick – make an omelette, or have beans on toast. It’s also healthier than buying breakfast, and you can squeeze in a couple of your five a day fruit & veg portions.

o Take a packed lunch rather than buying, or do 3 days packed lunch 2 days buying. Again, it doesn’t have to be a sad little sandwich. One idea is to take a portion of what you had for dinner the night before, or try making soup –cheap and healthy.


A - Is for Adding It Up

Start looking at how much those little habits cost - and not just the obvious things like cigarettes or alcohol. The daily spend that just disappears into your budget such as coffee & soft drinks, sweets, take away food, CDs & DVDs, magazines & newspapers, presents, toiletries & make up.

Then you can work out how much you could save, and if you really want to continue spending your money in this way.

Spending £10.00 per week for example adds up to £520.00 per year.

Have a no spending day (or week) if you are brave!
Just make sure you have pre paid or have money for travel and have food supplies and entertainment (a book or an iPod) – and then buy nothing!


R - Is for Relationship


Take the plunge and take an honest look at your relationship with your finances.

Have you been putting off making a budget because you don’t want to face the truth? Do you overspend because you have other issues that you feel you need to deal with? Don’t be afraid to ask for help if you feel you have emotional issues that are effecting your financial decisions. Your GP will be able to help with counselling services.

Start making decisions rather than just allowing things to happen- if you want to start saving, or you want to clear outstanding credit or debts then take the first S.M.A.R.T step.

Even if you can not make the changes that you wish to make straight away, being in control and making informed decisions will make you feel stronger and more positive about your financial future. You can share you experiences with other people and get help and advice from this site and our message board (link).


T - Is for Taking Control

Decide on a time scale to ensure that the changes that you want to make are realistic.
You could look at making a budget within the next 7 days

You can look at giving yourself a month to change a bank account or get a better savings account.

Perhaps you could commit to making changes for a period of 6 months to see how much you can change your spending habits

Commit to clearing off your store card or credit card in 12 months (if that’s possible).

Many options for dealing with over commitment on credit debt are over much longer periods than a year, and that is why CCCS will give you the best advice based on your circumstances. You may have to consider an option that is quite challenging, such as a long term debt management plan, or alternatives such as Insolvency.

Please contact us if you think you need help, and help all our other web users by posting your thoughts and sharing your experiences on here and on our Message Board.