As the new year dawns, it presents a prime opportunity to overhaul your personal finances. With expert guidance, we've compiled 26 actionable strategies to help you save and even generate extra income throughout 2026.
Slash Spending on Food and Socialising
January, often a lean month, is surprisingly ripe with dining deals to help your money go further. Beating the weekday blues is affordable with Browns restaurant offering signature mains for just £15 from Monday to Friday until 30th January. For an even lighter hit on your wallet, Bar + Block serves a £10 Lunch and Early Dinner menu weekdays from 11:30am to 5pm.
Families can capitalise on popular kids-eat-free promotions at chains including Bella Italia, TGI Fridays, and Las Iguanas. Beyond dining, therapist Vic Paterson suggests creating 'emotional spending speed bumps', like naming bank savings pots with blunt labels (e.g., 'Stop Tiddles Dying Cash') to curb impulse buys.
Boost Your Income and Manage Debt
Turning liabilities into assets is a key theme for 2026. If you're struggling with existing debt, Michael Taylor from Shifting Shares highlights zero-interest balance transfer cards as a powerful tool to pause interest payments and regain control. Conversely, generating side income is more accessible than ever.
The YouSpotProperty app offers the chance to earn up to £10,000 for identifying derelict buildings for developers, starting with a £20 voucher for a valid tip. Decluttering can also pay off; Polly Arrowsmith makes over £4,000 a year selling items on Vinted. For those with space, hosting a lodger can net an extra £7,500 tax-free annually under the Rent a Room Scheme.
Strategic Saving and Smart Switches
Effective money management is foundational. Experts recommend the 50-30-20 budgeting rule (50% on needs, 30% on wants, 20% on savings) or the 70/20/10 alternative if living costs are high. Proactive banking moves can also yield instant cash; Lloyds Bank currently offers up to £250 for switching accounts (monthly fees may apply), following Nationwide's recent £175 offer.
Savings rates are competitive, with Principality Building Society offering 8% fixed for six months on monthly deposits up to £200. It's crucial to review rates annually. Furthermore, a staggering £31 billion in pension pots is currently 'lost'. Tracing forgotten pensions via the Government's Pension Tracing Service could significantly boost your retirement fund.
Complaints expert Helen Dewdney urges consumers to assert their rights under the Consumer Rights Act 2015 for faulty goods, while a 'direct debit detox' and ditching the TV licence if you only use streaming services could save hundreds. Embracing a 'no-spend January' for essentials only can reset your financial mindset for a prosperous 2026.
