Five tips to help you plan your finances for the new year

No matter your financial goals for 2025, Dawn Cummins, Regional Manager for the West-Midlands at the Money and Pensions Service (MaPS) offers some guidance.

Sales started as early as Boxing Day, but they’re not always as great as they seem. Prices often rise in November, and January sales can lead to impulse buys.

Blue Monday (January 20), for example, is dubbed the 'most depressing day of the year,' by retailers to push sales, suggesting shopping will lift your mood.

If you need to buy something, make a list and do your research to avoid overspending.

Ensure you check your budget and other outgoing costs for this month to make sure whatever you do buy, you don’t stretch your budget too much.

Go through your calendar and see where your financial pinch points are for the year, including any changes that might affect you with the start of the new tax year on 6th April.

Where you might have cheaper months, see if you can then put money aside that you’ll need later in the year.

If you’re booking a summer holiday in January, factor this into your budget to split the cost over the year.

Use MoneyHelper’s budgeting tool to support your financial planning.

January is a great time to set yourself a savings goal, for example you could try to save a certain amount per month or save for something more specific such as family days out, a new car, or replacing the boiler.

Use the MoneyHelper budgeting tool where you can calculate how much you have leftover each month to put into savings.

Make sure the goal is realistic as otherwise you’ll struggle to stick to it. 

A good credit score can help with credit approval and lower repayments. Here are some simple ways to boost it.

Firstly, check your credit score for free to see where you stand.

Once you’ve checked your score, report any mistakes to the credit reference agency so it doesn’t impact your future score.

A few extra steps you can take to improve your score include adding rental payments to your credit report, and registering to vote if you haven’t already.

Registering to vote helps your credit because it confirms your identity, even if you live in shared accommodation or with parents.

Use MoneyHelper’s ‘Refused Credit Tool’ to help build your credit score.

January can often be a time of year when people struggle with their finances and problem debt. You might realise you can’t pay all your bills due in the next few weeks.

If you’re in this position, the best thing you can do is to reach out for help early.  

The first step can be the hardest, but it will make a massive difference. If you are facing debt, you’re not alone and you can get friendly and non-judgmental free advice.

Use MoneyHelper’s free debt advice locator tool to find free debt advice near you.