Financial resolutions for the new year

January is the time to make financial resolutions and ensure a healthier year ahead, according to one building society.

While many people`s pledges for the new year will include things such as giving up smoking and heading to the gym, Cheshire Building Society claims that steps to sort out personal finance matters are just as important.

Among the recommendations made by the institution are the beginning of savings accounts and putting money into a pension scheme.

Keeping a record of all financial transactions could also help as a means of clearing debt.

The company said: "Keep a diary of all your spending to see where you are wasting money and where you can cut back. You may find that by recording your outgoings, you spend less."

While many commentators - such as the Centre for Economics and Business Research and HSBC - are predicting cuts in the interest rate this year, it is also acknowledged that the effects of the credit crunch are yet to be felt.