Financial resolutions that will last beyond January

For most of us, the start of a new year brings a familiar ritual: the setting of new resolutions. Often, these resolutions are financial ones. Research consistently shows that around one in three people sets money-related goals in January – from enhancing savings rates to more intentional spending.

If you are already financially successful, the most powerful resolutions may not be about cutting back, but about getting organised, ensuring strategies in place and your assets are in the best possible position to work for you in the year – and years – ahead.

This year, rather than asking what should I do with my money?, it could be time to ask a different question: what would my own personal banker want me to do?

So here’s an insight from our banking experts as to where you could direct your attention in the coming weeks. From optimising saving and borrowing and planning for tax bills to protecting against fraud and updating key paperwork. These are practical steps to get ahead with your finances this year.

Are your savings and borrowings working hard enough?

The first weeks of the new year is the perfect time to review your bank accounts. Are your savings held in the most effective way? Have you made full use of your tax-efficient allowances? Is your borrowing structured to support the decisions you want to take this year? How could your money work better for you this year?

Many banks make decisions driven by algorithms and standard criteria. While efficient, they rarely account for complex or non-standard circumstances and can put certain types of clients at a disadvantage – an entrepreneur who wants to invest more in a business or a property portfolio, or older clients who want to take out a new mortgage, for example.

A relationship-led approach that involves speaking to a banker who is empowered to explore and understand your wider situation can often uncover more flexible and tailored solutions.

Tax planning for the year: avoid January surprises

For business owners and the self-employed, January often brings a flurry of demands from HMRC. After the expense of Christmas, self-assessment tax bills must be paid by January 31^st, and for companies with traditional 31^st March year ends, corporation tax is due on January 1^st. This usually means it needs to be in the government’s coffers by December 31^st.

The important question to ask now is, are the funds set aside to meet these demands? And if not, can your bank help to smooth out these spikes with flexible deposit or borrowing solutions? Planning ahead now for next year’s tax demands can reduce stress and preserve cashflows and liquidity.

Budgeting for the short, medium and long term

Good financial planning is not just about meeting immediate obligations. Looking well ahead – six months, a year or several years – can open up opportunities that might otherwise be missed.

Whether you are considering business expansion, property moves, investment opportunities or family support, structured planning allows you to prepare and then act, rather than react. New funding options, alternative structures or revised timelines could all help you to move forward more quickly and more confidently.

Safety first: protect your finances from fraud

Financial fraud continues to rise. One of the most valuable new year financial resolutions you can make is to tighten the security around your finances by refreshing your digital passwords, ensuring they are strong, unique and difficult to guess.

Your devices matter too. Ensure the security settings and anti-virus software on your phones and computers are robust and up to date.

Whenever possible, you should also enable multi-factor authentication. The most secure financial accounts will also use biometric checks such as fingerprint or facial recognition.

Why relationship banking matters for financial security

While technology plays a vital role in modern banking, there is still no substitute for having a human connection. One of the most effective safeguards against fraud is a bank that genuinely knows its clients.

Regular conversations, face-to-face meetings and an understanding of what is ‘normal’ for you means that unusual activity is more likely to be questioned. Banks can also place additional safeguards on accounts for individuals who may be more vulnerable to scams, something that can be discussed and arranged proactively.

Putting your financial paperwork in order

Hoping for the best while preparing for the worst is tried-and-tested advice and it applies perfectly to financial planning.

Wills and beneficiary forms are among the most important documents that you will ever update. Your will should reflect your wishes today, not a version of your life from many years ago.

The quieter weeks of January are an ideal time to look over this essential paperwork. Equally important and frequently overlooked are pension beneficiary forms. Ensuring these documents are accurate is not just sensible planning; it’s a gift to those that you care most about.

Bringing it all together: Financial resolutions for the year ahead

A strong financial start to the year doesn’t have to mean dramatic changes. Instead, it is built on a series of thoughtful actions:

• Savings and borrowings structured to support your goals
• Tax obligations well planned for
• Your finances protected with strong security and up-to-date technology
• All paperwork reviewed and in line with your current wishes
• A clear and strategic view of the year – and years – ahead

These are the kinds of new year financial resolutions that won’t have faded by February. They create momentum, clarity and control – setting you up not just for this year, but for long-term financial confidence.

If would benefit from a conversation with one of our expert bankers to help you plan for the year ahead, please get in touch. We’d be delighted to hear from you.

1. https://www.forbes.com/sites/daveywinder/2024/06/01/nsa-warns-iphone--android-users-to-turn-it-off-and-on-again/
2. https://www.gov.uk/company-tax-returns

The information provided in this article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax treatment depends on individual circumstances and may change in the future. Readers should seek independent professional advice from a qualified tax advisor before making any decisions. The Bank accepts no liability for actions taken based on this information