Expert Advice: Five Essential Money Resolutions Every Briton Should Make for the New Year

A personal finance expert has shared five New Year’s resolutions that Britons need to make to improve their financial standing in 2025.

Joe Lytwyn, an individual from Viva Money, has stated that he is capable of assisting individuals in reaching their financial objectives, such as budgeting and mastering the use of credit cards, through a series of uncomplicated actions.

As the New Year approaches, many individuals in the United Kingdom are likely eager to implement financial changes. However, the specialist has cautioned against establishing unattainable goals.

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’d love to achieve. 

‘In reality, achieving these objectives may sometimes require more time than a mere 12 months, or unexpected circumstances may arise, obstructing our progress and hindering our perseverance.

‘Setting achievable goals and being kind to yourself is paramount and could make all the difference in succeeding. For example, rather than saying, “I want to become completely debt-free in 2025,” instead vow to reduce as much debt as you can.’

Here, FEMAIL takes a look at the financial New Year resolutions people are being urged to stick to… 

Joe Lytwyn, from Viva Money, claimed these key financial New Year’s resolutions could help the British public improve their financial situations next year (stock image) 

1. Get serious about savings

Joe said: ‘Saving money can feel daunting, especially if our finances are already stretched. Again, this is where it helps to refrain from putting yourself under any unnecessary pressure. 

‘Rather than trying to save exactly £100 a month, instead make your resolution to put away as much as you’re comfortably able to. That way, you won’t feel disheartened if you don’t meet a specific target.’

Joe added: ‘In 2024, it was revealed that 1 in 6 UK adults don’t have any savings at all, so you should feel proud of whatever amount you’re putting away, whether that’s £10 or £100. 

‘It can be thrilling to watch your pot build up, particularly if you’re working towards paying for a specific luxury, such as a holiday or your dream kitchen.’

2. Set a budget each month

The expert explained: ‘Budgeting can be a useful tool in reducing the risk of overspending. Setting a monthly budget may sound like a tedious task, but it could help you save money. 

‘A couple of days before you get paid, work out your outgoings for the month ahead, starting with your essential costs, such as bills and food. 

‘The money you have left after deducting your essentials is your disposable income, and can be saved or spent however you choose.

‘Getting the hang of budgeting can take a couple of attempts, so don’t beat yourself up if your calculations fall short. 

‘Keep going, and eventually, budgeting could become a part of your monthly financial routine without you really having to think about it.’

With the New Year nearly upon us, people are undoubtedly looking to make financial changes and Joe claimed he can help people achieve their financial goals (stock image) 

3. Go through your outgoings

‘Set some time aside to go through all your Direct Debits,’ Joe suggested.

‘When payments are taken automatically, we don’t always miss the money leaving our account, so it’s important to do an in-depth check every now and again to keep on top of what we’re really paying for.

‘Last year’s gym membership, that you’re no longer making use of? Cancel it. A subscription to a streaming service you never watch? Get rid.

‘This is really an extension of budgeting, and is something you may wish to aim to do every couple of months to keep your finances fresh.’

4. Familiarise yourself with your credit score

‘Your credit score will play a major role in any credit applications you make in the future, whether this is for a loan, credit card, or a mortgage,’ explained the expert.

‘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 borrowed money. 

‘In addition to this, having a good credit score could unlock access to borrowing options and better interest rates.

‘If you’ve decided that you’d like to work towards a healthier credit position, checking your credit report could be a good starting point. 

‘Your credit report should provide you with information on the factors that may be influencing your score, giving you pointers to work on.’

5. Get credit card savvy

‘Hoping to improve your credit score in 2025? Let’s start by focusing on one 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 view you using your credit card to withdraw money from cash machines as a sign of poor financial management.

‘If you’re aiming to improve your credit score, you should try to keep your credit card utilisation as low as possible. 

‘Your credit card utilisation is the amount of money you’re currently using against the total available credit limit and is shown as a percentage. The lower your utilisation, the better.

‘Lastly, you should always make at least the minimum repayment amount off your credit card balance each month. 

‘Making late payments or missing them altogether will harm your credit score. Where possible, you should try to make more than the minimum repayment amount.’