Many people make plans to manage their money more carefully in the new year.
Whatever your financial goals for 2025, Claudine Bell, the Regional Manager for the South-East at the Money and Pensions Service (MaPS), offers some guidance.
1. Be wary of January sales
Sales started as early as Boxing Day, but they're not always as great as they seem. Prices often rise in November, and January sales can lead to impulse buys. For example,
Blue Monday (January 20) is dubbed the 'most depressing day of the year' by retailers to promote sales, suggesting that shopping will lift one's mood.
If you need to buy something, make a list and do your research to avoid overspending.
Also, check your budget and other outgoing costs for this month to ensure that whatever you buy doesn't stretch your budget too far.
2. Plan your year
Review your calendar and see your financial pinch points for the year, including any changes that might affect you when the new tax year starts on April 6.
Where you might have cheaper months, see if you can put money aside that you'll need later in the year.
If you're booking a summer holiday in January, factor this into your budget to split the cost over the year. Use MoneyHelper's budgeting tool to support your financial planning.
3. Set a savings goal
January is a great time to set a savings goal. For example, you could try to save a certain amount per month or save for something more specific, such as family days out, a new car, or replacing the boiler.
Use the MoneyHelper budgeting tool to calculate how much you have left over each month to put into savings. Ensure the goal is realistic; otherwise, you'll struggle to stick to it.
4. Improve your credit score
A good credit score can help with credit approval and lower repayments. Here are some simple ways to boost it.
First, check your credit score for free to see where you stand. Once you've done so, report any mistakes to the credit reference agency to avoid impacting your future score.
A few extra steps to improve your score include adding rental payments to your credit report and registering to vote.
Registering to vote helps your credit because it confirms your identity, even if you live in shared accommodation or with your parents.
Use MoneyHelper's 'Refused Credit Tool' to help build your credit score.
5. Reach out for help if you need it
January can often be a time of year when people struggle with their finances and have debt problems. You might realise you can't pay all your bills due in the next few weeks.
If you're in this position, the best thing you can do is seek help early.
The first step can be the hardest but will make a massive difference. If you are facing debt, you're not alone, and you can get friendly and non-judgmental free advice.
Use MoneyHelper's free debt advice locator tool to find free debt advice near you. Go to moneyhelper.org.uk/en/money-troubles/dealing-with-debt/use-our-debt-advice-locator
- This article was written by Claudine Bell, South-East Regional Manager, Money and Pensions Service.
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