If you have no idea where all your money went this year and your finances feel like a huge source of stress, don’t worry because 2026 offers a fresh start.
As the new calendar year speedily approaches, it’s the perfect time to pause, reflect and reset.
“A lot of people set New Year’s resolutions and see January as a fresh start,” says Dan Browne, financial planner at Smith & Pinching. “January can be a difficult month for many because a lot of people spend more than they probably should or could afford during the Christmas period so are often looking to cut back at the start of the year.
“If you take certain steps, you can start to enjoy 2026 and hopefully by the end of it you’re not going to get yourself in the same predicament with spending too much because you will have better financial habits in place.”
Here’s how to make 2026 the year you get on top of your finances…
Track your spending
“If you have a monthly income, you want to be reviewing your finances on a monthly basis,” advises Browne. “When people come to us we often give them a budget planner which gives them the opportunity to sit down, look at their bank statements and see what their outgoings and income looks like. Just scribbling this information down on a bit of paper helps make people’s spending more physical.”
Setting up a spreadsheet can help.
“It really does depend on the person, but personally I have a spreadsheet where I record my income, my known household bills and my savings every month and then I give myself a bit of enjoyment money as well,” says Browne. “There are also lots of apps that can help you keep on top of this by automating payments or setting up notifications for you.”
Check your subscriptions
“Make sure that you’re not paying for any subscriptions that you’re not using,” advises Browne. “We don’t necessarily miss the £5 or £10 going out every month, but it all adds up in the long run.”
Create a rainy day fund
“Another step that you can take is making sure that you’ve got ample cash savings,” says Browne. “We often call this a ‘rainy day fund’ or an emergency fund. Set aside some money when you can that isn’t for any focus other than covering any expenses that are unexpected.
“It really does depend on somebody’s personal circumstances, along with what protection that person has in place, but we would generally recommend having six months worth of income set aside as a starting point.”
Set up monthly direct debits
“Designate some money that you want to save every month into a direct debit so as soon as your income comes in it’s an automated payment,” recommends Browne. “This will help you save throughout the year and will help you keep on top of your bigger financial goals, such as paying for a holiday.
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“For example, if you are looking to save up £600 for a holiday in six months time, set up a direct debit of £100 to go into a savings account every month.”
Review all your insurances
“It’s definitely worthwhile reviewing all your insurances at the beginning of the year and noting down when all the renewal dates are coming up,” recommends Browne. “Then set an admin day two months before any insurance is due and start the process of looking on comparison websites to make sure that you’re paying a fair amount.”
Check on your pension payments
“Keep track of your pension and make sure that you know what that pension is worth,” advises Browne. “Keep all your personal information on that up to date and make sure that you’re comfortable with the amount that you’re paying in, and that it is going to work for you when you get to retirement.”
Apply the five-minute thinking rule
“Another useful New Year’s resolution to make is the five-minute thinking rule,” says Browne, “If you are thinking about buying something expensive, think about what difference this new item will make and if it will enhance your life or not. Also, think about if you will need / use it in a couple of months time. This can help stop impulse buys.”
Review any outstanding debt
“Make a list of any debts that you have and firstly look at what debt has the highest interest rate,” says Browne. “That will potentially be your first debt to target in terms of paying that down. However, make sure that there’s no penalties for early repayment or overpaying.
“When your income comes in, designate a manageable amount to contribute towards paying off that debt.”
