GET your finances fit for 2023 by taking up one of Harriet Meyer’s money challenges.
Involve your family and friends or tie a challenge to your own interests.
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RAINY DAY
THIS challenge relies on Mother Nature. If you want to build up a pot of cash for a rainy day, why not use every downpour as a reminder to save?
Decide on a set amount that is manageable for you to set aside on each day that it rains.
How much you save in total will depend where you are in the country, but last year it rained on 151 days in the UK, according to the Met Office.
So if you’d saved £1 each wet day you’d have £151 or if you’d doubled it to £2, you’d have £302 put aside.
NO SPEND DIET
FOR two days a week, cut out spending on unnecessary items, such as coffees, snacks and impulse buys.
You still pay for essentials, such as household bills, and groceries.
It’s a bit like a 5:2 diet for your spending. You can adapt the challenge to suit you.
If you’re feeling ambitious, you could make it a no-spend week or even set yourself the challenge of going a month without spending on anything but essentials.
It will help you find out what you really miss and what you can easily do without.
You could also use a money- saving app such as Plum to set goals, for example, building an emergency fund, or paying for a holiday.
WRITE IT OFF
WRITING your spending down can make you more mindful in your approach to your money.
Grab a piece of paper and write your monthly household income after tax.
Follow with your main outgoings: mortgage or rent, council tax, gas and electricity, broadband and any debt repayments.
You can then see what’s left to spend each month on other things.
This challenge should make you stop and think before you spend, and reduce the chances of impulse buys.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, says there are lots of emotional factors that drive us to shop.
She says: “The process of writing it down by hand means you’ll really think carefully about your spending.
“Consider whether you’re trying to reward yourself for something, or deal with boredom, and ask if there’s a more effective way.”
GAMEFACE ON
IF you’ve got a favourite TV gameshow, you can design a challenge around it.
Play along with the contestants and save 50p to £1 for each right answer.
You could do this once a week with your family to make it more fun.
Whoever gets the most answers and saves the most cash wins.
FOOTIE THE BILL
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BASE your challenge on something that’s linked to your own interests to help you stay motivated.
If you’re a footie fan, you could make a pledge to put £1 away every time your team scores a goal or wins a game.
Boost your bank balance further by having a no-spend day after every match your team loses.
CASH AND CARRY
IF you’re prone to making lots of impulse purchases with your credit or debit card, it might help to switch to cash when you’re out.
When you tap and pay it’s too easy to spend money without thinking.
Cash means you can give yourself a set amount for the day, although it’s not a good idea to carry around too much in case your wallet or purse is stolen.
The theory is you’ll think more carefully before you hand over a bank note than you might if you were using a card.
If this works for you, make sure to leave enough in your account to pay your bills.
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NOW STASH THE CASH
OPEN a top-paying easy access savings account for your challenge fund.
Check on a comparison site such as MoneySuperMarket or Moneyfacts to find the best rates.
Currently, an app-based savings account with Zopa is offering the highest rate at 2.86 per cent.
If it’s easier to put aside the cash from your spare change, try to transfer it into your savings account each month so you don’t miss out on interest or run the risk of getting burgled.
