However your festive season was spent the costs likely added up, leaving many facing a frugal start to the new year.
Gifts, early paychecks and extra nights out all take their toll, and last January, 14.6 million Britons struggled financially, according to the Financial Conduct Authority. With the cost of living still high, this trend shows no signs of easing.
Lewis Crompton, personal finance expert and founder of STARTrading told Express.co.uk: “January is as good a time as any to regain control over your financial situation.
“Equip yourself with a clear understanding of your finances and set a plan with steps to improve them.”
Drawing on more than 11 years of experience, Mr Crompton shared practical tips to help kick-start 2025 on solid financial footing, focusing on both financial and mental wellbeing.
Get crystal clear on your current financial position
Mr Crompton said: “Do you know every penny that you are spending monthly? If not, that is the first thing you need to change.
“Draw up a spreadsheet and make sure you can account for, and balance outgoing with income.”
Clean up your monthly expenses
Secondly, people should look to “clean up” their monthly expenses.
Mr Crompton said: “Review your standing orders and direct debits. You may not need to have all those streaming services or keep paying for that gym membership you have never used and will never use.”
Recover from Boxing Day
We don’t always make the best decisions in the sales – but if that’s the case there’s always a way to claw back your cash.
Mr Crompton said: “Don’t be too proud to return something bought in a Boxing Day sale. Did you really need that new piece of clothing or gadget? Was it really a good deal?
“Nothing is a good deal if it causes you financial stress.”
Stop spending for instant gratification
According to Mr Crompton, frivolous spending is often linked to environment.
He said: “If you aren’t happy, be that in your job, the place you live, a relationship you feel trapped in, then you may naturally spend to make yourself feel better.”
He added: “The self-help and wellness communities have a lot to answer for, selling ‘quick fixes’ when they don’t discuss the fundamental truth that financial stability enables mental stability.”
Create an investment plan, no matter how small you are starting
Investing needn’t be tricky – there are ways for anyone to start being wise with their cash.
Mr Crompton said: “There are simple options for you, like index trackers which you can set up a standing order to or apps that automatically invest for you. You can opt for an investment ISA or private savings plan, and I would always advise consulting a financial advisor if you have larger amounts to put away.
“Or learn to trade yourself – with the right education plan this will yield the most value, both financially and personally, as you will feel fully in control.”
Change your thinking about money
Mr Crompton said that one key to a fresh start to your finances is changing the way you think about money.
He said: “Change your thinking about money. Wealth can be measured in a personal way – against what you feel you need.
“You do not have to compare your income to someone else’s, we all need different amounts to keep us in a comfortable life, but it is good to not worry about whether you can afford the things you need and want each month. And to reach this point you need to take control of your financial situation.”
Have a financial goal
Without a goal, Mr Crompton said spending behaviour will reflect the fact you are not aiming for anything.
He said: “With a goal in mind, it will influence how you spend money. Do you want to have a set amount in savings, a certain amount invested, a deposit for your first home? Set the goal and create the steps you need to take to get there.”
Educate yourself about good money habits
Finally, Mr Crompton urged people to look to empower themselves with tools to generate wealth, and make money work harder.
He explained: “Put savings in a high yield return, and research the best way to invest your money, be that ISAs, Premium Bonds or investment plans. The recent Government raid on pensions should be warning enough that you need to invest some time into learning how to manage your own money. You can’t expect anyone else to do it for you.”
Mr Crompton added: “Imagine the level of financial clarity, hope and peace you would have if you were to implement each of these eight actions. I guarantee it will lead to a happier, and financially healthier, 2025.”
