Sadly, when it comes to financial health, as a nation we are rather less inclined to undertake to improve our situations. In the study, just 4% said that improving their finances would be the focus of their 2026 resolutions.
Perhaps people find the prospect of doing this too daunting, or the promise too wide-ranging. To help, we have come up with 11 suggested New Year’s resolutions which you could consider to improve your financial position in 2026.
1. Conduct a One Hour Money MOT
Key to improving your financial situation is understanding where you are starting from in the first place. Just an hour spent reviewing your finances can reveal some quick wins to kickstart your financially healthy 2026.
Review all of your direct debits, subscriptions and recurring bills
Cancel any unused services, and renegotiate utilities or insurance
If you are married, check you are taking full advantage of spouses’ allowances
2. Set one ‘Big Money Goal’ for the year
Psychologists say that having a ‘big goal’ is a powerful motivator for changing behaviour. Your financial goal might be achieving debt-free status, or saving enough for a deposit for a home, or putting enough aside for a major holiday. If you can see an end reward, you are more likely to stick at your resolutions.
3. Create a ‘Monthly Savings Ladder’
Having set a main goal, you can break down how you reach it into bite-size, achievable, smaller-scale targets. So you might decide to take a packed lunch into work instead of buying a sandwich every day, or have a takeaway-free month, or forego that daily cappuccino from the coffee shop on the way to work. You will be surprised what a difference that can make: a cappuccino from Starbucks costs £4.20, so if you miss that every workday for a month, you will have saved £91; carry on throughout the year and you will be more than £1,000 better off.
4. Refresh your Emergency Fund
Everyone needs a pot of cash they can call on in an emergency, whether to cover unexpected expenses or to tide them over if there is an interruption to their income. First set a target – perhaps three or six months’ income – and then start making weekly or monthly top-ups until you have enough put by.
5. Make a small increase in pension contributions
Sometimes the need to save for retirement can be so big that it is intimidating, but small changes can make a big difference. Why not pledge to increase you pension contributions by 1%: that is so small that you may not even notice it, but over time it can make a huge difference to your retirement income. If you receive a pay rise at work, taking just 1% of that increase means you can build up a meaningful pension pot without reducing your monthly income
6. Carry out a Cost Audit
The financial world is very competitive nowadays, and if you have older savings plans or pension schemes, you may find that you are paying more in charges than you need to. Conduct an audit of all your plans and policies, and if necessary switch to those charging less. But make sure you take advice before doing this, as you need to be sure you won’t miss out on legacy benefits such as guaranteed annuities.
7. Audit Perks and Benefits
Many people are missing out on free employer perks such as employer pension contribution matching, share schemes, retail discounts and health plans (not to mention salary sacrifice schemes, which the Chancellor announced plans to restrict in her autumn Budget, but not until 2029). It is also worth looking at other benefits such as credit card rewards, and free benefits such as travel insurance which may be included as part of a bank account package.
8. Switch to higher interest accounts or investments with better returns
Lots of people only consider cash savings, but even then many don’t ensure they are taking advantage of the best interest rates. It is certainly worth considering asset-based investments, which in the long-term offer better returns. And don’t forget to look at modern, tech-optimised current and savings accounts.
9. Review your Protection Policies
Check your life insurance, income protection, critical illness or business cover to make sure that the levels of cover align with any major life changes you may have been through, such as getting married, taking on a mortgage, or starting a family.
10. Prepare for 2026/27 tax changes
The last two Budgets have introduced significant changes to the tax regime, so the beginning of 2026, before the new tax year kicks in on 6th April, is an ideal time to ensure pension contributions and estate planning reflect those upcoming changes. With increased tax charges on things like interest, rental income and dividends, make sure you are in the optimum position.
11. Harvest your CGT losses
Look to address any large gains with any losses on long-held investments which you have been waiting to rebalance. You can balance these gains, which can be taxable at 24%, with those losses, meaning you can finally redeem them and filter those funds into new opportunities.
Have a happy and prosperous new year!