Act in January, save in February

When it comes to getting into habits you’ve always wanted to but either keep backtracking on or avoiding altogether, consider the impact that timing can have on your success. Timing can be a powerful tool if harnessed correctly.  

The feeling of a fresh start/new chapter/clean slate can make you feel more open to change, which includes the kick starting a new, positive habit. 

Cue the 1st of January, which ticks all the above boxes.  

Some will challenge this theory as around 80% of new year’s resolutions fail, but that also means that around 20% of people succeed. There’s obviously work to be done outside of the timing of setting a goal - we can’t pretend that 20% succeeded purely because of when they started - but it’s worth knowing that there’s power in the feeling of a fresh start.

Not surprisingly, a common goal referenced frequently in around the new year is ‘saving more money’ – something almost all of us can relate to. Even if you’re saving already, there’s often a feeling you could be saving more. My Deliveroo receipts definitely tell me I could be. 

Having a target of saving more money is too vague, and is probably not going to get you motivated, but setting a saving target to achieve within a set time-frame is more likely to see you storm into action. Then once you have a clear target, you’re more likely to stick with it if you can make it an automatic thing. So either creating a monthly direct debit or payroll contribution if you’ve come through the workplace helps to make saving easy – it’s almost more effort to cancel/change it. 

However, if you’re worried about having enough to save or concerned you won’t stick at it, set yourself a challenge or target which is measurable. If you’re a competitive being, this could work for you. 

Top tips for the year: 

• Start small. Can you start saving £10 a month through pay, then take it up over the year? Perhaps every quarter. Set a savings target  and CushonMe will let you know if you’re going to hit it. Remember that saving a little is better than nothing at all. And remember the old saying “from little acorns grow big oak trees”. 

• No spend week. Pick a week, do your food shop on a Sunday and settle yourself in for a week of no spending. Eat the food you have (so yes, prep is essential here) and no paid for activities (unless pre-paid such as gyms, craft classes etc). Please still pay your bills, this is more designed to make you mindful around takeaways and materialistic tendencies. A little twist, if you sell something then you can use that money in the week for a treat or such. If you enjoy it then make it a more regular feature. Great to get the kids involved! 

• No new new clothes. If you’re feeling brave, then you could commit to no ‘new new’ clothes for the year. This is typically done for environmental reasons to try and combat fast fashion, however your bank balance may look dramatically better also. You cannot buy new clothes from stores or online, but second hand is fine. If you don’t fancy doing it for the year, set yourself a shorter time period goal (i.e. 3 months). 

January is a great time to engage with saving and payroll makes it easy. If you sign up to Cushon in January, then any payroll contributions will kick in from February – so don’t’ worry if you’re feeling the squeeze from Christmas still. 

Cushon is about trying to make saving and investing an easy and accessible option for everyone. 

How do Cushon make it easy?

• Convenience. Saving straight from your pay each month (if you’ve come in through the workplace) is the easiest way to save because it’s automatic so it’s easier to budget your spending with saving already ticked off. 

• Accessibility. You can easily access and control your money through the app. Set up new saving pots, direct debits, lump sums and action withdrawals if you need. 

• Off the shelf. Picking an investment portfolio can feel scary, but that doesn’t mean investing isn’t an option. Choose one of the ready-made CushonMix portfolios where the investing picking has already been done for you. 

• Monitoring. CushonMe is a free service with any investment pot, it keeps track of your money and lets you know if you need to check in with your pot. 

ISAs run in line with the tax year so you have until April 5th to max out your savings before your allowances reset. You can top up your Cushon pots easily with lump sums and direct debits, payroll is just one way to pay in. 

We provide high quality impartial information but not advice, so it is important that you understand the risks of investing. The value of investments can go down as well as up which means you may get back less than you put in. 

Article by

NatWest Cushon