The new year is a perfect time to build better financial habits and work towards your financial goals. However, we all know good intentions only take us so far. That’s why, in this blog, we’ll explore five practical resolutions to help you save more in 2025.
We’ll start with tips on how to create a monthly budget that works for you. Then we’ll look at some simple savings challenges to help make putting money aside a regular habit. Finally, we’ll share tips on how to stick to your resolutions and make lasting financial changes. So, let’s get started!
Create a realistic monthly budget
Putting a budget in place can be the difference between hitting your financial goalsor missing the mark. Why? Because saving is about a forming a habit of putting cash aside. A solid budget will tell you how much you can spend and save, providing you with the foundation for saving success.
Split your spending
- Start with your essential expenses, like rent or mortgage, bills, food and transport.
- Then list non-essential expenses, such as dining, entertainment or subscription.
By splitting your spending into these categories, it can make it easier for you to highlight the areas you could cut back on. For example, you may have multiple streaming subscriptions but only use one regularly. Or you might justify the cost of unlimited music if you use it daily. By keeping the things which matter most, saving doesn’t feel like a sacrifice, making it easier to stick to your plan.
- Keep track of your spending. Use an app or spreadsheet to check your income and expenses. This will help you to understand where your money is going.
- Treat your savings like a monthly bill. Once you’ve decided how much you can realistically save each month, set up automated payments directly into your savings account.
- Once your budget is in place, review it regularly and adjust as needed. A well-thought-out budget will keep you on track to meet your financial goals for the new year.
Find out more about creating the right budget for you.
Start the new year with a money saving challenge
Savings challenges can make saving fun and rewarding. Here are some popular options to try:
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The 1p savings challenge
In one year, you could save £667.95 with the 1p savings challenge. It’s a fun and straightforward way to build up some cash. Start by saving 1p on 1st January, then add an extra penny a day - so save 2p on 2nd January, 3p on 3rd January and so on. By 31st December you’d be putting away £3.66, getting you to your final of £667.95.
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Try out a no-spend month
This popular trend involves going as long as possible without spending money on non-essentials – essential spend such as mortgage, rent, food is okay. By trying it out for a month, not only will you save money, but you’ll also reflect on how you spend your disposable income. If a month seems too long, try shorter stretches and track your progress on a calendar. If it works for you, some people have tried out the trend for a full year!
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Build a rainy-day fund
Whether you’re saving for a specific goal or building your emergency fund, a separate savings account can make it easier to stay organised and save consistently. Consider an easy access account or putting lump sums in fixed rate bonds and watch your savings grow over time. Having a clear goal of why you’re saving can be a great motivation.
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Open a savings account and commit to a monthly saving
Whether you’re saving for a specific goal or building your emergency fund, a separate savings account can make it easier to stay organised and save consistently. Consider an easy access account or putting lump sums in fixed rate bonds and watch your savings grow over time. Having a clear goal of why you’re saving can be a great motivation.
How to stick to a new year’s resolution
Sticking to resolutions can be challenging, but the right strategies make all the difference:
- Set measurable goals: By planning to save a set figure like £2,000 in 2025 or £200 a month will set you off to a good start and is more actionable than simply “save more money.”
- Have realistic expectations: You can’t save more than your disposable income will allow and if you set the bar too high, forcing you to cut back on all your comforts, you’ll feel like you’re failing rather than succeeding, making quitting seem like a better option. Saving small amounts, consistently, can lead to great results over time.
- Pat yourself on the back: Give yourself a small reward when you hit your savings milestones.
- Have a clear goal of why you’re saving can be a great motivation.
How Hodge can help
2025 can be your best financial year yet with the right resolutions and tools. It’s great to have a plan for your future, but make sure it’s realistic so you can still enjoy the moments that matter in between now and your next financial goal. Whatever part of the journey you’re on, from first time savers to retirement planners, we’re here to support you.
We’ve a range of savings account options such as fixed rate bonds and cash ISAs to help you reach your financial goals and gain financial control. Explore our savings options.
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This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.