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So many people use the New Year to kick start a health plan and look after their bodies, but the New Year can also be the perfect opportunity to review your financial health.

The holiday season is expensive, with food, presents, clothing, and events all adding up alongside all of the standard household costs. If you’re already struggling with debt, this is likely to have increased, or if you’ve overspent over the festive period, you may be worrying about how you’ll be able to repay this balance.

 We’re sharing some ideas below to help improve your financial health in 2025.

Create a budget

Sit down and work out what you’re spending your monthly income on, you might be surprised when you work out exactly where it’s going. It can be a great opportunity to cancel subscriptions that you’re not using or review your energy provider to see if you can get a better deal.

Our free budget planner is available here.  Try to build in a buffer when you work out your budget to plan for the unexpected.

Check you’re not missing out on any benefits

It’s important to check you’re not missing out on benefits you may be entitled to. Whether you’re already receiving benefits, unsure of your eligibility, or have previously been told you don’t qualify, it’s worth taking a moment to use a benefits calculator. It’s quick, confidential, free, and takes less than ten minutes.

Review your household costs

You can use comparison sites to find the best deals for bills, such as your gas and electric or broadband deals – some offer vouchers or discounts for you to switch to.

Try to ensure you don’t let policies auto-renew, such as broadband and home insurance, as they may auto-renew at a higher price than you’re already paying, and you may be able to get a better price elsewhere.

Try and complete a savings challenge

The no-spend challenge can be an ideal way to devote a month or two to cutting back on spending. The idea is that, during the timeframe you choose, you commit to spending money only on necessities like groceries, bills, and toiletries. Then, you cut out any non-essentials such as streaming services or days out.

This can be an ideal way to get back on track after overspending over Christmas and you may review your spending habits along the way by seeing how much you could be cutting back on going forward.

After the no-spend period, you can use your leftovers to pay off debts or put them into your savings account.

Another great idea to try is the £1 challenge, if you can, put £1 aside each day and by the end of 2025 you’ll have £365 in your pot.

Tackle your debt

If you’re struggling with debt, get some help in 2025. Carrying the burden of debt can weigh you down and it can be overwhelming to know where to start.  The good news is, we’re here to help. Call us on 0800 316 1833, we’re open from 8am – 8pm Monday to Friday, and 9am – 3pm on Saturdays. Alternatively, you can visit our advice page to speak to us via live chat or for more information.

If you’re looking for ways to make the most of your money, BudgetSmart has hundreds of easy actions you can take to improve your monthly budget.