Now that 2025 has drawn to a close and 2026 is here, you might have started thinking about resolutions.
While health and lifestyle goals may have come to mind initially, it’s also prudent to set yourself some financial resolutions for the year ahead.
Indeed, doing so could help you build healthy money habits and stay motivated. For instance, according to IFA Magazine, 87% of people say their saving goals drive them.
So, continue reading to discover seven specific financial resolutions that could prepare you for a prosperous 2026.
1. Create a budget
Budgeting allows you to understand exactly how much money you receive each month, and where it goes.
Even if you already have a budget, the start of a new year is the ideal time to review it, as your circumstances might have changed.
An accurate budget can help you:
- Save and invest more of your wealth
- Clear unsecured debt
- Build an emergency fund
- Develop healthy habits
- Alleviate financial stress.
Your budget can act as a financial roadmap for 2026, ultimately helping you build confidence about your direction of travel on the way to your long-term goals.
2. Consider increasing your pension contributions
If, after creating your budget, you find you have more disposable income than expected, it might be a good idea to increase your pension contributions.
Even seemingly insignificant boosts can make a considerable difference over time.
Standard Life reports that someone who starts working at age 22 on a salary of £25,000 and pays the minimum auto-enrolment contribution (5% employee, 3% employer) could build a pension pot of around £210,000 by age 68, adjusted for inflation.
Meanwhile, increasing monthly contributions by just 2% could result in a retirement fund of £262,000 – a £52,000 rise. This calculation assumes average investment growth of 5% a year.
Pensions are tax-efficient, too. Your gains are protected since Income Tax is only due on withdrawals over 25%, any investment returns are free from Capital Gains Tax, and you can benefit from tax relief on contributions.
3. Think about moving your savings over to investments
While holding some of your wealth in cash can help you meet your short-term goals, it’s important to remember that returns from investments have historically outpaced interest from savings.
So, you may want to start the year by moving some of your savings into investments.
According to MoneyAge, if you had maximised your ISA allowance each year since 1999, placing all of your wealth into a Cash ISA would have generated an average annual return of 2.85%.
This would have resulted in growth of £23,199 in real terms.
Yet, investing the same amount into FTSE 100 companies would have yielded an average return of 4.4%. This would amount to £157,591 – a difference of more than £134,000.
4. Maximise your tax breaks
ISAs are highly tax-efficient ways to save and invest for the future. Indeed, you don’t pay Income Tax, CGT, or Dividend Tax on any returns generated within ISAs.
You can typically pay up to £20,000 into all of your ISAs during the 2025/26 tax year. Just remember that you can’t carry this allowance forward to the following year, so ensure you’ve made full use of it before it resets in April.
Doing so could increase your financial stability and put you on a firmer footing for the year ahead.
5. Pay down any debt
High-interest debt can significantly affect your financial and mental wellbeing, especially if it snowballs and becomes unmanageable.
According to the Money Advice Trust, 31% of people who had faced debt problems in the past three years said their mental health got worse as a result.
So, the start of the year could be the ideal time to clear some of this unsecured debt. It may be prudent to employ strategies such as the “debt avalanche”, where you focus on paying off debts with the highest interest rates first while making minimum payments on others.
This could help you save money on total interest payments while working towards becoming debt-free.
6. Build an emergency fund
Creating a rainy-day fund is a practical way to boost your financial security for the year ahead.
It’s worth saving between three and six months’ worth of household expenses in an easy access savings account. If you have many dependents or are self-employed, you might want to hold as much as 12 months’ worth.
You can then use this money to cover any unexpected costs that may arise in 2026 without having to exhaust funds ringfenced for other purposes, which could ultimately derail your progress towards long-term goals.
7. Review and track your progress throughout the year
Financial resolutions are straightforward to make. Sticking to them throughout the year is often the challenge.
To keep yourself motivated, it’s worth reviewing and tracking your progress as you move through 2026.
Monthly check-ins could help you determine whether you’re still on track to achieve your resolutions.
Make sure to celebrate any milestones, too, as acknowledging even the small wins can reinforce positive habits and help you maintain your motivation.
You might even benefit from working closely with a financial adviser. They could offer some much-needed support and keep you accountable to your goals.
Get in touch
Our team of independent financial advisers in Lewes is here to support you with setting and achieving realistic resolutions in 2026.
To find out more, please get in touch by emailing us at financial@barwells-wealth.co.uk or by phone on 01273 086 311.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
The Financial Conduct Authority does not regulate tax planning.
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