From saving money to clearing debt to investing, the new year is often a time when people set their goals to boost their financial health.

Having targets in mind can help pave the way for success so here we explore some effective strategies to help you start the year on the right financial footing.

Saving and being savvy

1. Create a budget

If you’ve never created a budget before this can feel overwhelming.

Francesca the Money Fox, a financial advisor who shares her tips for saving and making money on Instagram, has told us how to get started.

She said: “Write out your income firstly, then your fixed expenses - these are the ones that don't tend to change from month to month, like your mortgage or rent, and these can easily be found in the direct debits section in your online banking.

“Then list out your variable expenses - so things like groceries, car fuel, kids’ expenses, beauty, restaurants/takeaways, miscellaneous expenses.

“The variable expenses are where most people trip up as they are usually frequent payments and you don't realise how much they are adding up throughout the month.

“Get very clear and specific on the goal that you want to achieve. I think most people would want to save more money or make more money, but being specific e.g. save £10,000 this year, will give you a lot more direction.”

Once you have your expenses and goals down, it's time to allocate your funds.

It might be useful to know that the average UK household budget for 2026 has risen to £34,444 per year (roughly £2,870 per month). With housing and essential bills now taking up a larger share of income, start your year by auditing your outgoings against this new baseline. If your 'discretionary' spending - non-essentials like dining out or luxury subscriptions - is significantly higher than the 2026 average of £497 per month, this could be a primary area for potential savings.

You also may want to review your budget regularly as life and circumstances will inevitably change as the year goes on.

2. Start saving for big events

In business these are known as sinking funds, and see you regularly set aside money for the gradual payment of something.

They can be useful in life too because you know certain events will be coming up and a sinking fund will help you be prepared and avoid putting things on your credit card – or pay off the credit card if they all come in January!

A simple way to create a sinking fund is to have a think of the big events you know you have coming up this year. Christmas, birthdays, a wedding you’ll need to travel to, a holiday, etc.

Work out how much you think this is going to cost you through the year, and divide the number by 12. Every month you’ll need to be saving that amount to be able to afford the events without dipping into your usual monthly budget.

For the best interest rates on savings, check out our NimbleFins Best Savings Accounts Guide which we update weekly with the best deals.

3. Start an emergency fund

Life is full of unexpected surprises. And sometimes you need some money to sort them. Whether it be a broken boiler, a car write off, redundancy, or something else, it’s normal for emergencies to happen.

So it’s sensible to have a rainy-day fund to prevent adding more stress to a difficult situation.

If you’re not sure where to start, Francesca told us: “You could start small by putting your change into a jar, or maybe challenge yourself to every £1 coin or £5 note that you have, you put into your savings pot.”

Some bank accounts have settings you can fix that rounds up your spending and saves the change into a savings pot. Apps such as Plum also do this.

Try to ring fence the money so it’s only used in an emergency – don’t be tempted to put it towards a holiday!

4. Make savvy decisions

In the run up to Christmas we listed loads of small changes you could make to save £100+ in 25 days, and they can be implemented at any time of year.

From cutting subscriptions to doing smart food shops, you could save well over £100 if you did everything on the list. They won't impact your life too much, and could give you a bit of financial headroom after Christmas.

Check out our article How to save money fast - tips to save £100 in 25 days, here.

Making money

1. Start a side hustle

This year could be the year you try to find a second source of income with a side hustle.

Side hustles are popular with people wanting to make a bit of extra cash or try out a business idea without going all in and quitting their job.

There are lots of roles people take as a side hustle, from mystery shopping to taking surveys.

We listed 9 Christmas jobs to earn extra cash over the festive period and some of these could give you inspiration for a side hustle this year.

Other options include a delivery or Uber driver, dog sitter, house sitter, babysitter, freelancing, tutoring, or even creating your own course.

2. Sell unwanted items

Clear the clutter and make money while doing it - win win!

One of the first places people think of is the wardrobe, selling unwanted clothes on online marketplaces such a eBay, Vinted and Facebook.

But you could also shift kitchen appliances you don't use as well as furniture, ornaments, electricals, collectibles, DIY tools, gym equipment, even cars.

Books, CDs and DVDs can be sold to places like MusicMagpie, Zapper and more. They don't make much, but if you have a large collection that you no longer use, the pennies could add up.

And don't forget about the traditional face to face selling events. Car boot sales are still really popular, and you can also often find table top sales in your local area.

Clearing debt

If you've got debt, you'll need to do something more than just cutting out a daily coffee to get back on track.

One popular way to stop interest piling up and up is to use a 0% balance transfer credit card. This is where you move your debt to a provider offering 0% interest for a set period.

Disclaimer: Always make sure you can afford repayments.

This gives you breathing room to make more manageable monthly payments without being charged interest on the rest of the debt (so long as you keep the intro deal, for example by paying at least the minimum amount on time each month and not exceeding your credit limit).

With a balance transfer card, everything you pay during the 0% period will go towards clearing your debt.

Not all 0% credit cards are the same. We've put together a comprehensive guide on how to compare balance transfer credit cards - and regularly update it with the best rates on the market right now.

There's also a calculator to work out how long it will take you to become debt free.

If you're wondering how personal loans compare with 0% credit cards, our researchers have put together this article: 0% credit cards v cheap personal loans: Which wins for cheap borrowing?.

Do note that taking out a credit card can impact your credit score. And always make sure you can afford repayments.

If you need debt support, you can contact organisations such as Citizens Advice, National Debtline, StepChange or Christians Against Poverty for free advice.

The Government has a list of all free debt advice providers here.

Investing

Perhaps this year is the year you want to start investing.

Historically, over time, higher returns have been achievable by careful investing in stocks and bonds rather than putting money in a savings account, but it does come with risks (e.g. you could lose money) and historical results are no guarantee of future success.

If your investments rise, then investing can benefit from compound growth. Much like how your pension provider will keep reinvesting the money it makes on your initial investment, your investment earnings generate more earnings over time, creating a snowball effect.

Although interest rates on savings accounts have improved in recent years, inflation has also soared meaning any money you do have is worth less over time.

Many people new to investing choose to put their money in a fund which pools money from lots of investors and chooses the shares to buy on your behalf, based on how much risk you want to take. Generally speaking, the greater return you chase, the more risk you'll have to take.

Never invest more than you're prepared to lose, because there is no guarantee your investments will be successful - the markets can go down as well as up.

If you would like to purchase specific shares yourself, you can look at online platforms which are a bit like supermarkets for shares. You'll generally be charged for using the platform and for making purchases.

If you haven't used your ISA allowance, you can invest into a stocks and shares ISA which means you won't be charged tax on any profit you make from your investments.

For the 2026/27 tax year, you can still invest up to £20,000 across your ISAs. This full allowance can be split however you choose between a Cash ISA, a Stocks and Shares ISA, an Innovative Finance ISA, or a Lifetime ISA (up to £4,000). Notably, 2026 is the final year that under-65s can put their entire £20,000 into cash; from April 2027, a new 'Cash ISA Cap' will restrict new cash contributions to just £12,000 per year, forcing the remaining £8,000 of the allowance into investments.

Tips to stay on track

If you worry you might not stick to your new year's resolutions, there are ways you can try to keep motivated.

Francesca suggests finding an 'accountability buddy'.

She said: "Maybe your friends also want to improve their finances, or you could find someone online in the finance community.

"You can search on Instagram for hashtags such as 'ukdebtfreecommunity' or 'ukmortgagefreecommunity' to look for accounts doing what you want to do. Follow them and message them to see if they'd like to be accountability buddies.

"You could also set up your own social media account to keep yourself accountable (this could be anonymous!).

"There are also other places such as Reddit or Facebook groups that you could search for."

Other ways to stay on track:

• Set clear, achievable goals and check in regularly to see if you're on track.

• Be realistic on your budget. You know you're going to want to socialise or have some other luxuries every now and then, so make sure you're factoring them into your budget.

• Stay informed on personal finance matters. This doesn’t have to be hard and tedious, but keeping your ears open to ideas on staying savvy can help you to make better financial decisions. The NimbleFins Facebook page shares lots of useful tips and news on how to make the most of your money. You can find us here.

• Reward yourself for small victories along the way to maintain motivation. Treat yourself to something small when you hit a milestone.

Read more:

• Average UK Household Budget

• Nimble Eats – cheap family recipes

• 9 jobs to earn extra cash

• How to save money fast - tips to save £100 in 25 days

• How to avoid the subscription trap as £500m spend on unwanted accounts every year