Money worries are a major source of stress, but these simple strategies could help you take control of your finances this year
Financial worries impact more than just our wallets, they’re a significant source of stress with one in three adults grappling with mental health issues due to monetary concerns, and an equal number fearing their situation will deteriorate in the coming months. The additional expenses of Christmas and New Year are already being felt, with research indicating many people have exhausted their entire December pay by January 21.
Money is one of the most common New Year’s resolutions made in January. People often set themselves financial targets in the hope of enhancing their situation by year-end, however, while resolutions are a good motivator, the reality is they seldom last beyond two months into the new year.
Nevertheless, there are some straightforward, realistic game-changing hacks to assist people in breaking this cycle, staying on track, and ending the year financially better off, reports the Daily Record.
Five financial changes to make 2026 a better year
Make saving a game you want to win
Transforming your financial goals into an exciting challenge can help maintain focus. Begin by using a streak tracker – there are apps available to help set savings targets and reward consistent progress.
Consider participating in a savings challenge online or with friends. Popular ones include the ’52-week challenge’ or a ‘no-spend month’.
Automate it and forget it
Setting up automatic transfers to a savings account on payday can help you forget the money was even in your account and curb the temptation to splurge. It also eliminates any issues you might have with willpower.
You can also utilise your banking app to round up your purchases and save the difference – it’s like passive saving without even realising. Schedule monthly payments for credit cards or loans to avoid forgetting crucial bills or unnecessary overspending.
Stop thinking long-term
Focusing on the grand scheme of things, such as retirement funds or emergency savings, isn’t always beneficial as it can feel overwhelming and abstract, making it harder to see any short-term progress. Instead, break it down into micro-goals.
Instead of aiming to set aside £5,000 in 2026, aim to save £125 in the upcoming weeks and always celebrate your small victories. Review your progress every month; this way, a large resolution can be broken down into 12 mini-goals and can be adjusted as needed. This can accommodate an unexpected overspend one month by cutting back the next.
Go public to stay motivated
Going public with your financial goals may sound daunting, but it’s an effective way to stay on track. For some, sharing their resolutions with close friends or family is the best option.
Make your goals tangible
Abstract financial goals often fail because they don’t feel immediate. If you are a visual thinker, create a vision board with images or quotes of milestones, like a dream trip or being debt-free.
If you’re more linguistically inclined, jot down how accomplishing your goals will make you feel. Revisit this note when your determination wanes or you feel disheartened, to remind yourself of your progress so far and your end-of-year aspirations.
