January is a time for change – and that means taking stock of our finances, says HELEN CRANE

The first week of January is rarely very pleasant as we return to normality with a thud after the New Year celebrations.

But after the cobwebs clear, many of us will begin to rethink our plans for the year ahead.

While not everyone subscribes to the idea of ​​making New Year’s resolutions, many see January as a time to make important decisions they’ve been putting off, or to get the ball rolling for changes in their lives.

That’s why real estate agents see a spike in the number of people wanting to put their homes up for sale in the last week of December, and employers often report a deluge of applications for job openings.

It’s also why the first work Monday in January is known as “Divorce Day,” when lawyers are inundated with requests from unhappy couples seeking to make their divorce official.

But most will not make such monumental changes. Others may simply be taking the opportunity to do a little financial spring cleaning, to spend less and save more or to settle a nagging credit card bill.

Making these plans includes taking stock of their money and working out what they need to do to achieve or get closer to their goals.

It won’t be an easy year for many as inflation continues to run high along with the cost of utility bills, fuel, food and loans – although many experts suggest 2023 will be the year some of these pressures begin to ease .

To help you flesh out your financial plans for the year, the amazing team of reporters at This is Money took a look at what 2023 could bring across all areas of our finances, from savings to mortgages and pensions to investing, what you can read below.

It looks set to be another eventful year for our finances, and as always, we’ll be here year-round to bring you the latest money news and advice.

You can contact us to give us your opinion – good and bad – at editor@thisismoney.co.uk.

Energy, food and fuel bills

The cost-of-living crisis has been a defining element of 2022 as households battled the double whammy of red-hot inflation and the energy crisis.

The Bank of England forecasts that inflation will fall sharply this year, but it may take some time for households to feel the full effect.

Mortgages and housing

Last year was a turbulent year for mortgages, not more so than in the wake of then-Prime Minister Liz Truss’ mini-budget in September, when average interest rates rose to more than 6.5 percent.

But those rates are now falling, and a cooling housing market could push them further down.

To invest

With a looming recession, the outlook for investors for 2023 does not immediately look favourable. But experts are hopeful that inflationary pressures could ease next year, pointing out that the UK market remains ‘cheap and unloved’, making it a good buying opportunity.

Savings

As we enter 2023, those who can put money aside to save will benefit from some of the highest interest rates on record in more than a decade.

We look at the best deals on the market right now.

Pensions

Many older people are facing another difficult year trying to keep up with rising household bills. However, pensions remain a safe haven of sorts (for now), and financial experts point out that now is a very good time to take advantage of the tax benefits available when you put money aside for retirement.

Buy to rent

Landlords will face squeezed margins this year, a capital gains tax hike and an end to no-fault evictions. However, rents are at record highs and more people could stay as renters rather than buy due to economic pressures, increasing demand.