7 SIMPLE MONEY-SAVING HACKS THAT WILL BOOST YOUR FINANCES IN 2025
The single most common New Year’s resolution for 2025 is to save more and spend less.
In fact, a brand new YouGov poll found that more than a quarter (29%) of people who’ve made resolutions are doing so to improve their finances.
But it’s unrealistic to think that you’re suddenly going to get a huge pay rise or save 50% of your pay cheque each month – if that’s your mindset you’re setting yourself up to fail.
Liz Hunter, director of Money Expert, feels the same. ‘The key to achieving a huge financial goal – whether that’s to rid yourself of debt, save a certain amount of money, or increase your pension pot – is setting habits,’ she says.
So, with that in mind, Liz has seven simple habits you can implement in the New Year to make achieving your financial goals feel like light work.
Check your accounts and bills regularly
‘It might seem like an obvious one,’ says Liz, ‘but regularly checking your bank accounts means you’ll know exactly what’s coming in, what’s going out and what you can afford to spend right now.
‘Even better, it means you can stop problems in their tracks; whether that be fraudulent charges or simply being a little too close to your overdraft (and the fees that come along with it) than you’d like.’
To make checking your accounts a priority, the money expert suggests implementing a short weekly sit-down session where you review what you’ve spent and how much you’ve got left to spend.
If that feels slightly daunting (checking finances often can be), Liz suggests opting for a quick balance check once a day to stay on top of things.
When it comes to reviewing your bills – remember that, just because they’re necessities, doesn’t mean that you’re stuck with those exact costs.
‘Setting aside some time to go through your utility, broadband and phone bills a couple of times in 2025 and beyond could potentially save you hundreds of pounds,’ Liz explains.
‘Use comparison sites to see if you could reduce your monthly or annual outgoings for broadband, TV and mobile services, as well as car, home, life and pet insurance payments – especially if you’re out of contract or it’s due for renewal.’
The expert also says not to be afraid of haggling with your current provider if you’ve spotted a cheaper deal – companies usually want to keep your business.
Track non-essential spending
After the first few months of 2025, Liz says to take a look at your bank statement and write down all your non-essential expenses and why you’ve spent that money.
‘It can be helpful to split these into categories – for example, eating out, takeaways, gifts for friends/family and clothes shopping,’ she explains.
‘Once you’ve got the figures in front of you, it should be easy to see where you can cut back.’
Some banking apps like Monzo already give you the ability to categorise each expense you make, and will send you updates as to whether you’ve spent more or less each month.
This could be a good way to streamline the process if it sounds a little tedious!
‘You can then adjust your spending and direct money to where you need it more, such as into your savings account or to pay off debt,’ Liz adds.
Consider your savings options
Who doesn’t want to have more money saved for a rainy day? Liz says opening an instant-access savings account is a great place to start because you’ll earn more interest on the money you have.
She adds: ‘As you build up your savings, look into other options, such as a fixed-term savings account where you lock away your money for a set period in return for a higher interest rate. You could also consider one of the many types of ISA, where you can earn tax-free interest.’
The expert also points out that, to make saving money even easier, you can turn on on round-ups in your banking app, which work by rounding up anything you spend to the nearest pound and putting the difference into a savings pot or account.
For example, if you spend £3.70 on a coffee three times a week, your bank will round this up to £4. They’ll automatically put the 30p difference into a separate pot/account for you which, over a year, would add up to an extra £46.80 saved.
According to Monzo, their customers save an average of £129 extra a year by using round-ups.
This allows you to save without really thinking about it. Alternatively Liz says that you could simply set up a standing order from your current account to your savings, which goes out as soon as you’ve been paid.
‘This means you’ll make saving a priority over your non-essential spending, rather than just saving whatever happens to be left in your account at the end of each month,’ she says.
Create pots for special occasions
It can be frustrating when you’ve made significant savings but then have to burn through them to fund things like birthdays, Christmas and holidays.
Liz suggests creating a savings pot for specific occasions that you know you’ll need extra funds for each year. Most online banking apps allow you to set up unlimited pots and automate the amount you put in each month.
Sign up for loyalty card schemes
Yes, it can seem like a faff but loyalty cards can save you a fair bit of money if you make a habit of using them.
Research by Which shows that signing up for a Tesco Clubcard could save you 7% on your shopping, while Co-op claims their loyalty scheme could save regular customers up to £300 per year.
Try to only buy what you can afford
Yes, not everyone has the luxury of not spreading payments out over a few months – but Liz says to try and avoid it if you can.
With 15% of UK adults missing important bill payments to ensure they can meet a Buy Now Pay Later deadline and one in six adults missing BNPL payments regularly – they can be a tricky to maintain.
Liz says: ‘The danger of BNPL services is that they encourage you to overextend your finances and buy things you might not usually be able to afford. Many people don’t realise that BNPL is a form of credit, which means missed payments can have a detrimental impact on your credit score and impact what you’re able to borrow in the future.’
Be an intentional buyer
It can be easy to get sucked in to buying things you want and don’t need. We aren’t saying to deprive yourself of some treats every now and then, but Liz says using the following tips will help you spend your money more intentionally.
Create lists and only add items you genuinely need. Use this list to control what you spend your money on and re-consider impulse purchases.
Are you making a financial New Year's resolution for 2025?
- Yes, I want to be better with my money
- No, money isn't my priority in the New Year
Use the 48-hour rule: If you spot something you really want to buy but don’t necessarily need, wait 48 hours before buying. This gives you enough time to consider the purchase and research other options to make sure it’s worth spending your money on.
If you have something specific in mind, look for the best deals, compare prices online and seek out discount codes before buying.
Avoid being taken in by extreme discounts. If you don’t need an item, then you aren’t saving money by getting it at a lower price.
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2024-12-28T12:15:36Z