New year, new beginnings. The turn of the year is an excellent opportunity to resolve to improve and gain control over personal finances, which may have taken quite a beating over the Christmas and New Year holidays.
And it's not too late to make some clear and reasonable promises that reduce financial stress and make room for a little extravagance.
Everyone can do something based on their own circumstances. Whether it's making ends meet, having a buffer or saving for a trip next year, says savings economist Sharon Lavie at the comparison site Lendo.
Take control
She says the promise that can work for most people is to review and try to reduce their expenses.
Take control of contracts and loans. Everyone who lives under their own roof has an electricity contract, home insurance and the like. You should look at whether you are paying too much there, says Lavie.
She also advises reviewing which streaming services and other subscriptions you have and considering whether they are really needed or can perhaps be canceled.
That doesn't mean you can't come back in two months, and you'll probably get a better offer if they want you back.
Before buying
Another New Year's resolution that may be relevant for many, regardless of financial circumstances, is to consume thoughtfully, advises Lavie.
For some, the weakness is impulse buying. You can introduce a 24-hour rule: do I really need this and can I wait? Do we have to buy a new drill or can we solve it by borrowing or renting?
Other promises to make to your wallet could be to build financial security through saving and better preparation. If you find it difficult to start saving, Sharon Lavie's tip is to start low and set up automatic savings that are withdrawn immediately when you get paid. A first goal could be to build a buffer equivalent to at least two months of expenses.
Once the buffer is in place, you can continue to save long-term in a savings account or in mutual funds.
1. I will cut my expenses
Get your bank statements and calculate how much you spend per month on housing, food and transport. Write down the amounts and set a goal. For example, in 2026 I will reduce each area by 10 percent. Take one area at a time. Develop concrete measures such as comparing and changing insurance, optimising food shopping, joining a carpool.
2. I will consume thoughtfully
Implement a 24-hour rule for all purchases over a certain amount to give yourself time to think about it. Ask yourself if there is really a need. Could you rent, borrow or buy second-hand instead?
3. I should be better prepared
Draw a year axis and mark which months involve larger expenses, for example, full-year insurance, car service, memberships, children's term fees for activities, vacations or Christmas. Calculate how many months are left until each expense is paid. Divide the cost by that number of months and save that amount each month until you have the full amount.
Source: Sharon Lavie, savings economist
