As the first week of 2026 draws to a close, many Britons are still determined to stick to their New Year's pledges. For those aiming to improve their financial health, expert advice offers a clear path to significant savings.
Aseem Munshi, Founder of the financial app Updraft, has outlined five key financial resolutions that could collectively help individuals save as much as £8,950 over the coming year. These strategies focus on smart budgeting, reducing waste, and mindful spending.
Master Your Budget with the 50-30-20 Rule
One of the most effective starting points is adopting the 50-30-20 budgeting method. This rule suggests dividing your monthly take-home pay into three clear categories: 50% for essential needs, 30% for flexible wants, and 20% for savings and debt repayment.
Applying this to the average UK annual income of £39,000 (approximately £2,633 per month after tax), a sustainable budget would allocate £1,316 for essentials, £790 for wants, and £526 for savings or debt.
"We estimate that this could allow Brits to save up to £6,312 a year, creating a healthy financial buffer," Munshi explained. "It allows people to understand exactly where their money is going, which is the first step to reducing financial stress."
Cut Household Costs Through Planning and Maintenance
Beyond budgeting, targeted actions in the home can yield substantial savings. With British households typically spending around £3,892 annually on food and drink, weekly meal prepping is a powerful tool to combat waste.
By planning and cooking meals in bulk, families can better control purchases, potentially saving up to £728 a year. Munshi highlights this as a "key way for most households to reduce both food waste and spending."
Similarly, proactive home maintenance prevents costly future repairs and reduces energy waste. Three simple tasks can make a big difference:
- Sealing draughty windows could save up to £192 a year on energy bills.
- Cleaning gutters prevents water damage that might cost £700 to fix.
- Servicing your boiler annually for around £80 can save £245 in energy costs and prevent breakdowns.
Together, these maintenance steps could safeguard up to £1,137 a year.
Curb Impulse Spending and Audit Subscriptions
Mindless spending is a major drain on finances. Britons lose an estimated £605 annually on impulse buys, often driven by flash sales or stress. Munshi advocates for the '24-hour rule': waiting a full day before making any non-essential purchase. This pause encourages more intentional financial decisions and helps avoid buyer's remorse.
Another common leak in the budget is forgotten subscriptions. Many people lose track of monthly payments, costing families an average of £14 per month. Conducting a regular subscription review and cancelling unused services can therefore save around £168 over the course of a year.
"A quick audit of monthly expenses can uncover forgotten subscriptions and put money back into your pockets," Munshi advised, "ensuring that you’re only paying for those you truly need."
By combining these five approaches—disciplined budgeting, meal planning, home maintenance, mindful spending, and subscription audits—individuals can take powerful control of their finances in 2026, turning resolutions into tangible savings.
