We all want to save more, spend less, set ourselves up for retirement and own our own homes. If you’ve been meaning to sort out your finances, there’s no reason why you can’t make 2016 the year you slash your debt and save some serious cash for a rainy day.

If you’re like me, you probably find the statistics troubling- especially the fact that a large percentage of the population are just one pay away from bankruptcy. This is worrying for anyone who’s working in this current economic climate, especially since technology is making so many jobs and careers redundant.

Here are some tips for saving money this year:

Commit to a savings plan

Most people go about saving the wrong way. They pay off all of their bills, plus rent, food, and entertainment money and decide that they’ll save the little they have left over- usually dipping into this fund the week before payday. The answer? Pay bills first, and transfer money straight into your savings before buying groceries or having any fun. Once you’ve put the money away you can forget about it and focus on stretching out the money you have left.

Budget

This goes hand in hand with the point above. Without clear financial goals, it’s impossible to get anywhere. If necessary, consider speaking to a financial advisor who can take a good look at your incomings and outgoings and give you expert advice about how to whip your finances back into shape.

If you have a goal you’re saving towards (maybe a house deposit, new car or even just school fees for the kids), write this number on a piece of paper and hang it on your bedroom mirror. Every time you transfer money into your savings account, update the amount of money you have left to save. Keeping an eye on your goal is seriously motivating and will help you stay focused and achieve success.

Shop Smart

Often we end up splurging on things we don’t need, or treating ourselves with a shopping trip after a hard week of work. If you’re a serial shopper, consider leaving your main credit or debit card at home when you’re near a mall, and only taking it out with you if you have thought about what it is you want to purchase, and decided that it’s worth the money. Impulse purchases are the worst for savings, so consider staying away from the malls completely and shopping online. Visit websites like Bags to Go to get great savings and deals without being overwhelmed by all of the other stores you’re likely to see if you go shopping in a mall.

Cut up the credit cards

Speaking of credit cards, the interest rates on these bad boys are responsible for many people being in a terrible financial situation. Commit to cutting them up and paying them off, and consider finding a card with a super low rate so you can consolidate all of your debt for six months and hack away at it without the high interest rates.