Managing money doesn’t have to be time consuming, there are some simple ways that people can take control that can help them prepare for long term success. James Norton, head of financial planners at Vanguard, spoke exclusively to Express.co.uk about some simple tips people can use when thinking about their savings for the New Year.

He said: “Managing your money doesn’t have to be time consuming, there are some simple steps that can have a significant impact on your finances and help you set yourself up for long term success.

“It doesn’t have to be difficult and it doesn’t have to be boring. Make yourself feel better about your financial future this new year, it will make all the difference.

1 Emergency fund
Mr Norton explained that it was essential to have a rainy day fund / emergency fund.

He suggested that people should establish a regular standing order soon after their payday to go into their savings account.

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“Many bank accounts have a rounding or jackpot feature that can help you save small amounts each month,” he said.

2 Best rates
Plus, he mentioned that people can shop around for the best interest rates.

Mr Norton added, “The best rates may not be from providers you know, so always check that they are part of the FSCS compensation scheme, as this means your savings are protected if the provider encounters any losses. financial difficulties.

“Look at the change of bank account, right now there are many banks / building societies offering cash incentives ranging from £ 100 to £ 150 to change checking account.

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“But be aware that there may be terms and conditions associated with this ie a fixed monthly deposit is required, typically £ 1000 per month and / or at least 2 active direct debits to set up on the account.”

3 have a goal
To be successful with New Year’s resolutions, especially financial ones, it is important for Britons to have a plan and stick to it.

People need to set goals and know why they want to achieve them before making resolutions.

Mr. Norton continued, “Have a plan and stick to it. Think about your goals and why you want to start saving, write them down and use them as a focal point in developing your plan.

“Be excited about your plan and refer to it, keeping it alive and relevant. Don’t worry if you don’t always live up to your original ideals.

“If you deviate from course, adjust the plan and sail. If you stick to it, you will be proud of yourself and each day a little richer. Two easy wins! “.

4 Invest
Mr Norton then discussed the benefits of composing in encouraging people to start as soon as possible because of the potential returns people can make.

He warned, however, that by investing, people can just as easily lose money as they gain.

He said, “Start small and save more. Small amounts add up, and if you want to invest your savings, compound interest means the earlier you start the better.

“Be disciplined. This is the one that people often find the most difficult. As in any area of ​​life, if you want to be successful, discipline is important.

“It means sticking to your plan.

“Don’t be tempted to give up when things don’t always go the way you want them to, it will all be worth it in the end.”