5 tips to help you stick to New Year's financial resolutions

With many of us likely to abandon our goals by the end of this month, here are some tips to help you:

We all start the year, setting out goals for the next 12 months. According to the research institute Statistic Brain, the top resolution at the start of 2015 was to lose weight. But while getting organised took second place, spending less and saving more took third position. This is no surprise; financial resolutions such as saving more, cutting back on debt and reducing credit card spend are standard - but sticking to those plans is harder than making them. With many of us likely to abandon our goals by the end of this month, here are five tips to help you stick to your New Year's financial resolutions:
Track your spending
If you want to save more or pay off your debts, the only way to ensure this happens is to have a clear idea of what you spend each day, week or month. Many of us have no idea where our money goes, so by noting your everyday spending either in a notebook, on a spreadsheet or by storing receipts you will quickly see patterns emerge. From there you can identify unhealthy spending habits - such as that Dh40 daily lunch bill - that are easily breakable.
Check your credit score
You may think you are a model citizen when it comes to money management, but one way to know for sure is to buy a copy of your credit report. You can apply for your personal summary from the Al Etihad Credit Bureau (AECB); the report tracks your financial transactions over the last 24 months, recording all the credit facilities you are signed up to and any payments you have missed.
Change your friends
If you want to stop spending recklessly, you need to identify peak spending times. This can often be on the weekend when you are socialising and UAE residents are very guilty of trying to keep up with the Joneses. If you are spending on things you cannot afford to ensure you fit in with your social group, you either need to stop caring what others think or change your friendship circle. There is no point trying to afford a lifestyle your income does not stretch to.
Tackle easy debts first
If your plan is to erase debts once and for all, make it easy and get rid of the most manageable debt first. While it may not be the most expensive debt, i.e. the liability with the highest interest rate, it may be the one you can pay off fastest, for example a credit card with a Dh2,000 on it rather than a card with Dh20,000 outstanding. As each debt is removed, it will make you feel psychologically lighter and the debt burden less heavy - helping you to stick to your plan.
Budget, budget, budget
You've learned to keep a tally of your spending and you know the current state of your finances through your credit report, now you need to plan ahead. Setting clear spending goals each month will help you stick to a healthier regime. This can be jotted down in a pad, set out precisely on a spreadsheet or done using an online application or mobile app. Whichever method used, by logging your plans you are far more likely to adhere to them and become a better money manager in 2016.
The writer is chief executive at compareit4me.com. Views expressed by him are his own and do not reflect the newspaper's policy.

• UAE