A personal finance expert has shared five New Year’s resolutions Brits should make to improve their financial situation in 2025.
Joe Lytwyn, of live moneysaid it can help people achieve their financial goals, from budgeting to becoming credit card experts, all with a few simple steps.
With the New Year approaching, people across the UK are no doubt looking to make financial changes, but the expert warned against setting unattainable challenges.
He said: ‘The key to keeping resolutions is to reduce the amount of pressure you put yourself under.
‘From increasing our savings to improving our credit score, many of us have financial goals in mind that we would love to achieve.
‘In reality, these goals sometimes take longer than a 12-month period, or an unexpected event arises that gets in the way and prevents us from persevering.
‘Setting achievable goals and being kind to yourself is paramount and could make all the difference to your success. For example, instead of saying, “I want to be completely debt-free by 2025,” vow to reduce as much debt as you can.
Here, FEMAIL takes a look at the New Year’s financial resolutions people are urged to keep…
Viva Money’s Joe Lytwyn said these key New Year’s financial resolutions could help the British public improve their financial situation next year (file image)
1. Get serious about saving
Joe said: ‘Saving money can be daunting, especially if our finances are already stretched thin. Again, this is where it helps to refrain from putting yourself under unnecessary pressure.
‘Instead of trying to save exactly £100 a month, resolve to save as much as you comfortably can. That way, you won’t get discouraged if you don’t reach a specific goal.’
Joe added: ‘In 2024, it was revealed that 1 in 6 UK adults have no savings at all, so you should be proud of whatever amount you’re saving, whether it’s £10 or £100.
“It can be exciting to watch your marijuana stack up, especially if you’re working to afford a specific luxury, like a vacation or the kitchen of your dreams.”
2. Set a budget every month
The expert explained: ‘Budgeting can be a useful tool to reduce the risk of overspending. Setting a monthly budget may seem like a tedious task, but it could help you save money.
‘A couple of days before you get paid, calculate your expenses for the next month, starting with essential costs, like bills and food.
‘The money you have left after deducting essentials is your disposable income and you can save or spend it however you want.
‘Learning how to budget may take a couple of tries, so don’t beat yourself up if your calculations fall short.
“Keep going and eventually budgeting could become part of your monthly financial routine without you having to really think about it.”
With the New Year approaching, people are certainly looking to make financial changes and Joe said it can help people achieve their financial goals (stock image)
3. Check your expenses
“Set aside some time to review all your direct debits,” Joe suggested.
‘When payments are made automatically, we don’t always lose the money that leaves our account, so it’s important to do a thorough check from time to time to be aware of what we’re actually paying.
—Last year’s gym membership that you no longer use? Cancel it. A subscription to a streaming service you never watch? Get rid of.
“This is really an extension of the budget, and it’s something you may want to do every couple of months to keep your finances fresh.”
4. Get familiar with your credit score
“Your credit score will play an important role in any credit application you make in the future, whether for a loan, credit card or mortgage,” the expert explained.
‘When you apply for credit, the provider/lender will use your credit score to give them an idea of how likely you are to be able to repay the money you borrow.
‘In addition to this, having a good credit score could unlock access to borrowing options and better interest rates.
‘If you’ve decided you’d like to work towards a healthier credit position, checking your credit report could be a good starting point.
“Your credit report should give you information about the factors that may be influencing your score, giving you suggestions to work on.”
5. Gain knowledge about credit cards
‘Do you expect to improve your credit score in 2025? Let’s start by focusing on an area that might be affecting you.
‘Did you know that some credit card habits could have a negative impact on your credit score? For example, some providers may consider using your credit card to withdraw money from ATMs to be a sign of poor financial management.
‘If your goal is to improve your credit score, you should try to keep your credit card usage as low as possible.
‘Your credit card utilization is the amount of money you are currently using against your total available credit limit and is displayed as a percentage. The less its use, the better.
‘Lastly, you should always make at least the minimum payment amount on your credit card balance each month.
‘Making late payments or missing them altogether will damage your credit score. Wherever possible, you should try to pay more than the minimum refund amount.’