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Whew, what a year! For many people, 2008 was probably their most financially challenging year ever, and amid apocalyptic predictions this week of a "winter surge" of redundancies and further sharp falls in house prices, all the signs are that we could be set for an even bumpier ride this year.
It is easy to feel there is little you can do to insulate yourself from the recessionary winds, but by giving your finances a makeover and making your money work harder, you can cushion yourself from some of the shocks that may be around the corner.
The new year is an ideal time to resolve to get a better grip on your finances. In fact, it tops the nation's list of 2009 new year's resolutions, according to price comparison website Gocompare.com. Research by the site found that paying off debts and saving money are more popular resolutions than seeing more of our family and friends, losing weight and stopping smoking.
To help you on your way, Guardian Money has compiled its top new year's resolutions to make 2009 a better year financially. If you have been flexing the plastic in a big way over the past few weeks, you may want to start with tackling your festive financial hangover.
Pay off your debts
It might sound like a daunting task, but make time to sit down and write a list of all the money you owe on credit cards, store cards, loans, overdrafts and so on.
"This is the hardest bit," says Andrew Hagger of personal finance website Moneynet.co.uk. "Many people know they have money problems but won't own up to them. If you're not prepared to face this first step, it's unlikely that you'll manage to get your finances on track."
Switching to a cheap credit card deal could be one of the best ways of getting your finances back into shape. Hagger adds: "If you have built up some debt on credit cards and store cards and you are paying interest rates of 25%-plus, you could be paying a great deal less. Zero per cent balance-transfer deals can work well for those with expensive debt to switch over. The best thing to do, once you've transferred your balances, is to close the old card/loan accounts and also cut up your new card to stop you being tempted to use it for purchases."
Among the companies offering cards boasting 0% interest on balance transfers for more than 12 months are Virgin Money (0% for 16 months - also offers 0% on purchases for six months) and HSBC (0% for 15 months - also offers 0% on purchases for three months).
Set a budget
Make 2009 the year you get your finances under control by setting a budget and sticking to it. Look at what you have got coming in each month and your monthly expenditure on essentials such as mortgage or rent, food and petrol. Then take away the amount you are setting aside for debt repayments.
What you have left is what you've got to live on. Take a fixed amount of cash out of the ATM at the beginning of each week and try to make it last until the following week. If you are not sure where your cash is going, keep a list of everything you spend money on - you will be surprised how the cost of daily lattes or pub lunches can add up.
Check your mortgage
David Hollingworth at mortgage broker London & Country says it makes sense to look for a new mortgage deal up to six months before your existing one comes to an end - so put a note in your diary.
"Lenders continue to tier their product offerings based on loan-to-value (LTV), with the best rates available to those with 40% equity," Hollingworth says. "With house prices continuing to fall, shopping around earlier could mean you qualify for a cheaper, low LTV banding. A mortgage offer will typically be valid for three to six months."
There are still savings to be had for many homeowners, and remortgaging should be a priority for those not tied into their current deal. What looks like a small difference in rate can amount to a big difference in monthly outgoings. Someone with a £150,000 25-year repayment mortgage could slash their monthly payments from £932 to £843 by switching from a rate of 5.5% to 4.5%. That's an annual saving of £1,068.
If you have been lucky enough to benefit from recent interest rate reductions, it makes sense to resolve to overpay on your mortgage. If you have a tracker that allows overpayments, you can do this simply by asking your lender to keep your payments at the same level, regardless of base rate reductions. "As well as cutting the cost of interest, this could help to maintain a level of equity for when a new deal is required," Hollingworth says. "It will also make life easier when interest rates head back up."
Shop around
This is the year you should make sure you get the best deal on everything from current accounts and credit cards to utility bills and mobile phone contracts. The golden rule is to always shop around.
Comparison websites such as uSwitch.com, Moneysupermarket.com and Confused.com make this easy - so spend a couple of hours on the internet making sure you are on the cheapest deals possible. "Savings of up to £325 a year are still up for grabs for those who have never swapped energy supplier," says Scott Byrom, utilities manager at Moneysupermarket.com. "It will be interesting to see if the government goes as far as forcing providers to reduce rates in an era of falling wholesale prices."
And if you have been on the same mobile tariff for some time, chances are there is a better one out there for you. Other ways to cut your mobile bill include opting for a "sim-only" tariff where, as the name suggests, you get a new sim card but have to provide the phone yourself (ie, you use your existing handset). Some experts reckon sim-only deals are set to really take off this year.
Last year, supermarket group Asda slashed pay-as-you-go UK calls to a flat rate 8p a minute, and texts to 4p. An Asda Mobile sim card, which you can pop in the back of your existing phone, costs just 49p. Asda sim packs are available from the retailer's website and in stores. You can keep your current number. Ikea also offers a low-cost sim-only deal for pay-as-you-goers.
Start saving
Research by price comparison website MoneyExpert.com shows that most people would only be able to support themselves for two months if they lost their job, and with unemployment figures going up by the day, that is clearly a worrying figure.
Sean Gardner at the site says: "Obviously the more you save, the better the position you'll be in should the worst happen, and - despite massive cuts in the base rate recently - there are still worthwhile savings options available."
If you have not yet developed the habit of saving, a regular savings account, where you commit to paying in a set amount each month, can be a good place to start. HSBC's Regular Saver is a good option for customers of the bank, offering 8% on accounts up to a maximum of £3,000, Gardner says. Other institutions offering regular savings accounts at decent rates include Abbey (6%) and Barclays (5.84%).
Cut your tax bill
Make it a resolution not to pay more tax than you have to. You should make use of your annual Isa allowance, as well as claiming any tax credits you might be eligible for.
If you have to complete a self-assessment tax return, make sure you do so by 31 January. More than 850,000 forms were submitted late last year, according to Unbiased.co.uk, the search engine that helps people find an independent financial adviser.
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