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10 tips to take control of your finances in 2026.
9th January 2026
As we start a new year it is important for people to strengthen their financial wellbeing for the year ahead. Your finances could have changed significantly over the previous year, so it’s always a good idea to regularly review and see how you may be able to improve your financial situation.
WEALTH at work has run financial education workshops for employees at hundreds of organisations, and outlines below some top tips to help people take control of their finances in the year ahead.
1. Create a budget – The initial step to reducing expenses is to create a budget. People should work out what exactly their income is each month and check their bank statements to clarify what outgoings they have.
Outgoings can then be divided into fixed costs which have to be paid such as a mortgage, council tax, energy and water, and then those which may be able to be cut back on such as supermarket shopping, monthly contracts for TV, subscriptions and other spending. Some banks have apps which enable this to be done automatically; this will highlight where money is going and where savings could be made.
2. Track finances – After creating a budget it is important to keep track of spending. Spotting where irregular outgoings go can make a huge difference to a person’s finances. For example, the average household in the UK spends £1,401 on eating food out (e.g. takeaways and restaurants) each year. There are many free budgeting apps available which will help to track spending on groceries, eating out, entertainment etc.
3. Shop wisely – Plan shopping in advance as it will allow time to search for the best deals and reduce expenditure on non-essential items. Also, by switching brands it might be possible to significantly reduce the price of the regular shop. This approach, known as supermarket downshifting, involves choosing lower-cost alternatives such as store brands instead of premium or branded products, and it typically cuts grocery bills by around 30%. When it comes to big purchases, such as if a washing machine breaks, discount vouchers are often available through voucher and discount websites, and many workplaces offer employee discount schemes (see tip 10). When shopping for a particular product, Idealo finds the best price online for a particular product and CamelCamelCamel allows you to track the price of Amazon products. Consider installing browser extensions like Honey that search for discount codes during online check-out.
4. Save on household bills – It is possible to make significant savings on a range of household bills from car and home insurance to phone, broadband, TV and mobile contracts. Price comparison websites can help to make it easy to compare the different deals available. Changing to a SIM only deal on your mobile once you’re out of contract could save £321 a year. Plus, changing broadband providers could save £203 a year.
5. Avoid auto-renewals – Many insurance policies automatically renew each year so many people may be paying more than they need to if they don’t shop around. It’s a good idea to find out when any contracts are due to end and put it in the diary a month earlier so that there is plenty of time to shop around. For example, using a price comparison site could save up to £514 on car insurance, so £1028 for a two-car household.
6. Manage debt – It’s important to understand the difference between good debt and bad debt. For example, a mortgage is a form of good debt which should be reviewed occasionally to ensure you have a good deal. However, at the opposite end of the spectrum, debt with high interest payments such as payday loans and credit cards can get out of control if they are not repaid quickly. For example, a debt of £3,000, with a rate of 18% APR, could take 9 years and 10 months to pay off when paying £52 a month, with total interest of £3091 paid. If that monthly payment was increased to £100 a month, the debt would be paid off in 3 years and 4 months, and interest paid would be only £908. If this was increased to £325 a month, the debt would be paid in 10 months, with total interest of £229 paid. For those struggling with debt, a good option could be to consolidate all debts into a 0% or low interest balance transfer card, as more money will go towards paying the debt off and enable it to be cleared over a shorter time. Those who are struggling to make a payment should speak to their provider before they miss a payment as help may be available.
7. Create savings – A lack of savings can have a serious impact on financial resilience, as many people unfortunately realise too late the importance of having emergency savings. Ideally individuals should have 3-6 months of emergency savings which can be accessed at short notice. This can provide a financial buffer if they, or a member of their household, experiences a drop of income due to redundancy, illness, or unexpected expenses – such as replacing the boiler or expensive car repairs. Setting up a regular transfer to a savings account can be a useful way to get into the habit of saving. Some workplaces also offer payroll saving into a Workplace ISA which means that money is automatically saved money from your pay, making saving effortless and habitual. Money Helper offers a savings calculator to help determine how long it will take to reach a savings goal: https://www.moneyhelper.org.uk/en/savings/how-to-save/savings-calculator.
8. Beware of energy costs – Make sure you do all you can to be energy efficient. Small changes such as turning off lights when they aren’t needed, washing clothes at 30 degrees instead of higher temperatures, making sure the dishwasher is only used when full, and cutting down on the number of times the kettle is boiled can add up to really make a difference to energy bills. Just switching all appliances off standby mode can save £45 a year.
9. Make the most of pensions – Pensions can be one of the most valuable ways of saving for the future. Currently, employers are required to make a 3% minimum contribution with employees required to pay 5% to bring the total pension contribution to 8%. Individuals should check the contributions they are making and consider whether they can afford to increase them. Depending on the arrangement an employer has in place, some will match any additional contributions which can make a big difference. For example*, an additional 1% saved each year into a pension, matched by an employer, can increase a pension pot by 25% in retirement! Also, don’t forget to keep track of all your pensions. Whilst auto-enrolment has successfully increased pension participation, it has also led to employees accumulating multiple small pension pots as they move between jobs. Consolidating these pots can make it easier to manage savings and improve investment oversight.
10. Maximise workplace benefits – Many employers also offer other perks such as discount schemes with major retailers on groceries, dining and electrical goods etc where lots of savings can be made. Not only this, financial education and guidance is provided in many workplaces to help people with a full range of money matters, as well as providing access to savings vehicles such as ISAs and Share Plans to help build financial resilience.
Jonathan Watts Lay, Director, WEALTH at work, comments;
“Now is the perfect time to take control of your financial future. Start by understanding your current financial situation and taking proactive steps to stay on track for 2026 and beyond. Many employers provide valuable support, including financial education, one-to-one guidance from expert coaches, alongside access to investment advice. They may also offer savings vehicles such as Workplace ISAs and Share Plans help build long-term financial resilience, as well as Pension Consolidation services to help employees gain control of their retirement savings. Speak to your employer to find out what support is available and take advantage of these opportunities to build financial confidence and resilience.”