The festive season is over and many of us are already back to work for the new year. But before that new year glow wears off altogether, consider these tips to get your finances into gear for the year ahead.

Make a pact with your budget

The first rule of getting your finances into gear is to have a budget...and the second rule is to stick to it. If you don't already have one, now is the time to do one. To help you do that, we've already got a budgeting fact sheet, as well as a handy budget planner.

If you've already been doing a budget, new year is a great time to sit down and see how it's been working for you. Did you stick to it last year? Were there some areas where the plan went astray, or some financial commitments you had trouble fulfilling?

If your finances aren't quite where you thought they should have been by now, try these troubleshooting tips to see if your budget, or your day-to-day money management, could be improved...

Budget troubleshooting

• Have you sprung a spending leak? Maybe you're buying a few extra cups of coffee through the week, or occasionally treating yourself to an extra magazine or three, or not sticking to your plan to take home-made lunches to work every day. On their own, these things may not seem like much, but if they're not accounted for in your budget, over time they amount to costly spending leaks that can cause a budget blow-out. (Refer to our spending leaks fact sheet for more on this topic.)
• Did you get the urge to splurge? Every now and then, most of us are guilty of not quite sticking to the plan - we're only human, and there are plenty of temptations out there just waiting for us to reach for the credit card or make an unscheduled trip to the ATM. If you've fallen victim to the urge to splurge, even if it's just once, that can be enough to send your budget off track. That's why it's important to note down everything you spend your money on through the year. That way, if your budget has gone off track, you can look back and make an honest assessment of what contributed to the derailment, and you can take positive steps to avoid taking the same train this year!
• Has your debt grown? If you took on a new loan or more credit through the year, or if any of the interest rates applied to your debts increased, then your overall repayments will also have increased. If you didn't take this into account during the year and modify your budget accordingly, then this will be a major contributor if you're having trouble sticking to your budget. Whenever your financial commitments change, so too should your budget.
• Is your income on track? Did you earn as much as you expected to this year? Had you been counting on a bonus that just didn't arrive, or wasn't as big as expected? Were your hours cut back, or did you work less overtime? Or did you lose time (and money) from work due to illness? No matter how hard you might try, two and two just don't make five! If your income has suffered, chances are your budget won't have stayed on track. It's important to reassess your income at least once a year, and certainly whenever there's been a change, and adjust your budget accordingly.

Plan ahead for this year's expenses

One way of keeping your budget on track and preventing blow-outs is simply to plan ahead for the year's expenses, and what better time to do that than right now?

Factor in the usual expenses

Many of your expenses will already be in your budget from last year, for example council rates and mortgage payments, rent, car insurance, school fees etc. If any of these have changed, factor in the increase or decrease.

Factor in new expenses

If you've taken on new expenses - for example a new car that requires insurance, loan repayments, autoclub membership - note them down and make sure they're included in this year's budget.

Factor in expenses that no longer apply

If you paid off a debt through the year, or if you simply don't have certain regular expenses any more (perhaps your youngest child finished school and school fees no longer apply, or perhaps you cancelled a membership or a subscription), don't let this money disappear into oblivion! See how you can put the surplus to use this year - maybe you can increase repayments on another debt and have it paid off sooner, or maybe you can put the money into a savings plan to get you one step closer to a long-term savings goal.

Get serious about a savings plan

Speaking of savings plans, how did yours fare this year? Sometimes we spend so much effort working out how to pay off our debts, we don't think about what we can save. If you can find room in your budget, try to ensure you are regularly setting aside money (even if it's only a small amount), to save up for something that you and the family really need or want. Having a savings goal in mind, and ultimately reaching that goal, can be just the incentive you need to stick to your budget throughout the year, and can help you achieve major financial goals.

Top tips for a top savings plan

• Set some savings goals so that you know what you're saving for.
• Keep your goals realistic and attainable, unrealistic goals will only discourage you when you can't meet them.
• Make your savings plan part of your budget so that you never forget to pay yourself.
• Set up a direct debit into a savings account if you can, that way it will be harder to go off track and spend your savings on something you haven't planned for.

Make it a family affair

Your budget and your financial plans for the year might affect more people than just you. For example, are you preparing a budget for you and a partner, or for you and your family? If so, why not involve everyone in the process this year. If the kids are old enough, get them involved too - seeing how the adults in the family manage money and balance money priorities is an important learning tool for children.

Sharing the love

By including the family members in budgeting discussions:

• the whole family shares in the decisions and actions you undertake;
• everyone has an opportunity to learn something;
• everyone shares the reward for a job well done.

Hold a family meeting at a time that suits everyone and preferably at a time when everyone's feeling refreshed and enthusiastic. While the adults should guide the discussion, it's still important that:

• everyone gets a chance to have some input;
• everyone comes up with suggestions on things they'd like to save for;
• everyone comes up with suggestions on ways they could cut costs;
• everyone helps to form mini goals that you can set along the path to achieving bigger goals;
• everyone shares in the end reward.

Financial peace-keeping for partners