Pay off debts and save for a rainy day - Brits 2013 financial resolutions

As 2012 draws to a close and 2013 starts afresh, the nation reveals its financial resolutions for the New Year.

Research from J.P. Morgan Asset Management found repaying debts tops the list of the nation's financial priorities for 2013, while saving on a regular basis comes in a close second in the top five:

1. Repaying debts (29%)

2. Regular saving (28%)

3. Reviewing their financial situation (24%)

4. Saving into an ISA (23%)

5. Repaying a mortgage (16%)

We are also a nation with high hopes for our financial futures, as two-fifths of respondents say they will tackle a new ‘money' goal in 2013. One in 10 (11%) plan on saving on a regular basis and 7% will invest for the first time. A further 15% say they will review their financial situation more regularly in the new year and 6% say they will start making provision for their long-term financial future by paying into a private pension.

Keith Evins, Head of UK Funds Marketing at J.P. Morgan Asset Management, commented: "Addressing your finances by tackling something for the first time can lift a real weight from your shoulders - especially as we emerge from an expensive festive period with the goal of being more financially savvy. I urge Brits to consider both short and long-term goals: repaying debts is a great place to start in the short term and offers a clean slate to then start thinking about the broader financial future, such as building up rainy-day savings and planning for retirement."

Looking back on 2012

Finances were high on the agenda for the nation in 2012 as well - particularly saving. The research revealed one in five ISA savers (19%) started putting money aside in 2012 - the same proportion as those stashing the cash in a regular saving account. Furthermore, 14% of those with a regular savings account increased the amount they saved in 2012, while 13% of ISA savers said they increased the amount of money they put into an ISA. 16% of those with credit card or loan debts increased their repayments.

Caution and cutbacks

The J.P. Morgan Asset Management research paints a picture of the confidence the nation has in making financial decisions. It found a quarter (25%) aren't confident they have the knowledge and tools to make the right decisions for their financial future - 15% are not very confident and 10% are not at all confident. The poll also delved into how the economic climate of the past few years has impacted the way people look at their personal finances. Over two-fifths (42%) say they are much more cautious with their cash these days and 43% have cut down their household spending. One in five also admits to now spending much more time thinking about their financial priorities. Interestingly, 7% of those surveyed say they are no longer relying on the housing market to provide returns and one in 10 (9%) say the economic climate has encouraged them to pay down their mortgage.

Keith Evins concluded: "Whichever way you look at it, and whatever your financial priorities are for 2013 and beyond, the new year is a good time to take a step back and assess spending and saving habits. It is worrying to realise a quarter of the nation lacks the confidence to make the right decisions for their financial future. Spending time now on research and forward financial planning could improve confidence levels and knowledge and could, for example, mean enjoying a more comfortable retirement later in life. Using an online platform like J.P. Morgan WealthManager+ is a potential solution - it's a one-stop shop for investors, offers financial planning tools, and is quick and simple to use."