How to boost your bank balance in 2022

January is traditionally a month of paying off Christmas debts and beginning new resolutions but this year more than ever, it’s a time when a spotlight will be shone on our personal finances.

The pandemic has resulted in an economic crisis which we are in the middle of. It has left millions with less money than they usually have, thanks to entire industries cutting back or shutting down.

On the other hand, those lucky enough to keep their jobs and work from home have managed to save money. Yet everyone, no matter what their financial situation, will have been hit with higher costs thanks to soaring inflation levels.

So, there’s no better time to make some quick and easy changes to generate a little extra cash for the new year.

One of the best ways to boost your bank balance and declutter after Christmas is by selling things you no longer need.

Anything goes when it comes to reselling, even things you think are worthless. We found a small empty Jo Malone perfume box which recently sold for £3.50 and a box of 30 used toilet roll holders which went for £1.50 on eBay.

Even if you think it’s rubbish, it’s worth taking a look on websites such as eBay or Facebook Marketplace to see if someone else will pay you for it.

Chloe Webster, 29, a meditation teacher from Chester, started selling items for her neighbours in 2021 and has made more than £800 since as she takes a 50 per cent cut of anything she manages to get rid of.

She said: “I’ve been selling my own things for years and family members noticed how much I was making from stuff lying around the house.

“I think people love to see how much money they can make from things they don’t even use anymore – plus it frees up space in their house. I can make up to £150 with each person’s ‘haul’ of items.”

It’s worth comparing prices on the different online marketplaces, as well as specialised sellers, to see where you can get the most money for your unwanted goods. Remember to factor in any selling and delivery costs.

Renting out items you aren’t using, or even spaces such as a spare room, locker, garage, or driveway, can also be a great way to make some extra money. You can list spare rooms on websites such as Airbnb or Spareroom.co.uk and you may be able to earn up to £7,500 tax free, if you meet the government’s requirements for the Rent a Room scheme.

If you have any spare time, you could also consider a side hustle. From dog walking, house sitting or childcare, to selling your expertise or items you make, there’s a wide range of opportunities. A lot will depend on how much time you have and your existing skills.

Lucy Griffiths, author of Make Money While You Sleep, suggests starting with an online course and says, “regardless of your age, education or location, it’s never been easier to turn your knowledge and expertise into an online course.”

“Think about who your audience is. The more focused and niche your course is, the more effective and stand-out it will be. Rather than teaching people yoga, think how you can stand out. Could you focus on yoga for special needs, or mindfulness for pregnant women?,” she adds.

Something anyone can do if you’re looking to pocket some extra money is to switch current accounts. There’s a range of enticing offers, such as a free £100 when you switch to First Direct or £100 when switching to a Nationwide Flex Direct account (£125 for existing customers).

It takes just seven days, thanks to the Current Account Switch Service (CASS), and your new provider should take care of the entire process for you. Most will require you to deposit a certain amount each month or may set a time limit for having the account before you can claim the cash.

Making sure any money you have saved is in the best home possible is also an easy way to help it to grow.

Interest rates are dire at the moment but they are increasing, to 0.25 per cent last week. You could put your money into a current account that pays interest, such as the Virgin Money M Plus account which pays 2.02 per cent interest on up to £1,000, or a traditional savings account.

Wherever it goes, make sure you get the highest interest rate possible and don’t lock your savings away for too long, if you’re going to need them at some point soon.

While you’re checking your old savings accounts and boosting your interest rates, you could also have a look around for any old savings or investment accounts you may have forgotten about.

It’s estimated that around £1bn is currently lingering in old bank and savings accounts which people have lost track of or overlooked.

The website Mylostaccount.org is a free service which lets you track down old savings accounts. Who knows, you may discover a long-forgotten-about pot of money that could come in handy this year.