The post-Christmas period is the perfect time to start taking control of spending and set clear financial goals for the year ahead, experts say
Households are being urged to take control of their finances with a consumer champion warning that even high earners are not immune from money pressures. Jane Hawkes, personal finance expert and founder of the Lady Janey website, says the post-Christmas period is the ideal time to get a grip on spending and set out a clear savings plan for 2026.
She said: “The festive season tends to stretch budgets while the New Year offers the perfect opportunity to reflect on our financial wellbeing and set goals. It’s the ideal period for making a 2026 savings plan.”
And she cautioned against complacency among better-paid workers, adding: “Those with good wages may think they’re safe from financial stresses. But unexpected events can happen to anyone, and anyone can be guilty of spending beyond their means.”
She argues that a proper savings plan brings focus and discipline, saying. “Making a savings plan gives you clarity and ensures you reach your financial goals more quickly and efficiently.”
Here, she sets out five practical steps to help households build a savings plan that actually works.
Start with a solid foundation
Turning a blind eye to spending – particularly impulsive or unnecessary purchases – may feel easier, but Jane Hawkes says facing the numbers head-on is often the biggest motivator for change. She advises gathering all financial records from at least the past three months, including bank statements, bills, credit card balances and pension contributions.
Looking at a full financial quarter gives a more realistic picture of average monthly spending. December, for example, is likely to make a far bigger dent in bank balances than most other months. This exercise, she says, provides a clear and honest view of incomings and outgoings.
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Be savvy with your savings
Once finances have been assessed, Ms Hawkes recommends shopping around for better deals on essentials such as phone contracts, utilities and TV packages – and picking up the phone rather than relying on online prices. She also urges households to be tough on everyday spending: how often is the gym really used, could coffee be made at home, and was that impulse purchase really needed?
For longer-term goals, she says choosing the right savings accounts matters. Used properly, compound interest can significantly speed up progress towards major aims such as a pension pot or a house deposit.
Set a budget that works towards your goals
Where finances are shared, Ms Hawkes stresses that both partners must be involved. A budget will only succeed if spending limits and goals are agreed by everyone. She suggests dividing costs into three broad categories: essentials, discretionary spending and financial goals such as savings and debt repayments.
Clear, time-bound goals are a powerful motivator, whether they are short-term or long-term – and she says an emergency fund should always be built into any plan.
Piggy banks made easy
Modern banking has made saving simpler than ever, with banks such as Monzo, Starling and Chase offering digital “pots” or piggy banks for specific goals. Ms Hawkes recommends setting up direct debits from a main account into these separate pots, whether for a summer holiday, Christmas, a new kitchen or an emergency fund.
Many banks also allow bills to be paid directly from these pots, helping households compartmentalise spending. The principle, she says, is simple: pay yourself first, then live on what is left.
Stay up to date
Finally, Ms Hawkes warns that government policy and global events can have a direct impact on savings. She points to recent Budget changes, which capped tax-free allowances on salary sacrifice schemes and cut the amount that can be put into cash ISAs tax-free by close to 50%.
Her message is clear: what worked for savers a year ago may no longer be the best option now – making regular reviews of any savings plan essential.
For the latest money-saving tips, shopping and consumer news, go to the new Everything Money website
