Expert tips to create good money habits - and how to make them stick this time

Many of us start the new year with the commendable intention of getting better with money.

But, as with all resolutions, we’re vulnerable to failure unless we make concrete changes early on that are easy to stick to.

So, while your motivation is at its highest, here are some healthy habits you can establish now that will help to keep you on track throughout the next 12 months - and hopefully beyond.

Consistency is the key to hitting your savings goals, so don’t rely on your willpower and memory to keep you committed. Once you’ve identified what you’re saving for and how much you need to save, arrange an automated monthly transfer from your current account to a separate savings account.

It’s best to schedule this soon after you get paid (assuming you receive a monthly salary).

This ensures that the transfer won’t push you into your overdraft and removes the temptation to spend it rather than save it.

It’s fine to start small, too! The best rates on offer right now can be found here.

It’s no good saving consistently every month if you’re also sporadically dipping in for discretionary purchases.

If you’re guilty of this, perhaps you need to introduce new barriers to make accessing your savings more difficult.

Many savings accounts only allow you to make a limited number of withdrawals within a year. Others pay a lower interest rate in the months that you make a withdrawal than in the months you don’t.

Decide what will work best for you, then sign up for a suitable account.

A piece of money advice you might have heard before is to give every pound a job.

This means assigning each pound or penny of income to a specific bill, debt repayment, or savings goal, so there’s no uncertainty around how you’ll use it.

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Many accounts from newer banks make this easy by splitting your balance between multiple pots (also known as spaces or vaults). You can even have specific direct debits tied to specific pots.

You might find it useful to have a pot of “fun” money as well as pots for bills and savings goals. This relieves the mental load of deciding whether you can afford to indulge in a non-essential purchase or experience, as it becomes a simple matter of whether there’s money in the pot.

If you tend to run out of money every month before payday arrives, but you’re not sure where it’s all going, precisely tracking your spending will give you a needed reality check.

While it’s possible to do this yourself by recording outgoing payments in a spreadsheet (or even with pen and paper), this is a laborious task you might lose energy for by February.

Instead, you can download an app, like Snoop or Emma, that links to your bank accounts and reports back insights.

These also allow you to set limits on different categories of spending (like takeaway food) and will alert you when you’re close to your limit.

When you’re trying and failing to control your spending, impulse purchases are often to blame.

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These occur because the immediate reward of spending is more tangible than the delayed gratification of saving.

To help distinguish between purchases you truly need or want and those based on momentary urges, make yourself wait 48 hours. You may find you no longer feel the same compulsion to buy, and you may have even forgotten what you were buying - or found a better deal elsewhere.

It’s smart to start the year by updating your budget in line with your current income and outgoings – but that’s not enough to help you stay on track for the next 12 months.

Add a reminder to your calendar now to check in again in early April (before the end of the tax year), July and October.

Use these reviews to check:

With your savings automated, your current account organised, and your spending under control, these quarterly reviews should be quick and easy.

You’ll soon see progress that will keep you motivated for not just months, but years to come.

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.