As the calendar turns to a new year, a wave of motivation often sweeps across the UK, prompting resolutions ranging from fitness regimes to home organisation. For many, however, the primary focus is firmly on their wallets. Key ambitions for 2026 include conquering credit card balances, accumulating a house deposit, and simply gaining better control over personal finances.
Building an Actionable Financial Plan
Erica Grundza, a certified financial planner with the investing app Betterment, emphasises that New Year is an ideal moment for a financial review. "New Year’s is a really good time to review and realign your financial goals overall," she stated on Monday 29 December 2025. Her core advice is to look forward with optimism tempered by realism, rather than dwelling on past financial missteps.
Grundza recommends re-establishing the fundamental "why" behind your relationship with money. This could translate into a modest goal, like saving £10 weekly, or a larger ambition such as saving for a property. The journey is personal, she notes.
Coach MarieYolaine Toms, founder of Focused Fire, warns against vague resolutions that become unattainable dreams. She advocates for a "no resolutions" mindset, replacing it with actionable plans that can be tracked and adjusted. A practical first step she suggests is obtaining your credit report from the three main bureaus and, based on its findings, creating a simple savings plan—for instance, committing to add £25 to a savings account every week.
Real-Life Strategies: From Debt to Savings
The path to financial health varies for everyone. After losing her magazine editor job in September 2025, Rachel Pelovitz, 33, took drastic action. Facing significant debt accrued during her husband's 18-month unemployment, the couple decided to sell their house and work with a debt consolidation service. Pelovitz's primary goal for 2026 is to eliminate half of her credit card debt and begin moderate investing with some of the sale proceeds.
For Jenni Lee, a 27-year-old tech worker and content creator from Chicago, the coming year is about discipline. Despite considering herself generally good with money, she aims to curb overspending on social media-influenced microtrends like clothing and dining out. Her long-term objective is to save for a home, prompting a more frugal approach now to avoid hardship later.
Meanwhile, Melanie Duarte, a 23-year-old marketing agency owner from Worcester, is juggling multiple goals. She is focusing on paying off student loans and credit card debt while simultaneously building an emergency fund. "I made sure to include it in my budget, even if it’s something as small as like $50," Duarte explained, highlighting the power of consistent, small contributions.
Striking the Crucial Balance
A critical, yet challenging, aspect of financial planning is finding equilibrium. Tiana Stewart, 26, from Maryland, was profoundly affected by her grandfather's death shortly after retirement. This experience led her to prioritise enjoying her earnings through travel in her twenties. Now, she seeks a healthier balance, aiming to pay off debt, save, and invest while still appreciating her current life.
For those seeking structure, participating in budgeting challenges—such as a no-buy month or even a no-buy year—can be an effective method to curb spending and redirect funds towards financial objectives. The key, experts agree, is to create a realistic, personalised plan that fosters both financial security and personal fulfilment in 2026.
