Seven New Year’s resolutions to help you save over £2,500 in a year, according to a Personal Finance Expert

The cost of living crisis has made many people in the UK rethink their finances, so much so that over 2 in 5 (41%) Brits have made it their New Year’s resolution to save more money (Source: Yougov). 

In order to help Brits meet their savings goals, Personal Finance Expert at CashLady.com, Dan Whittaker, has shared seven New Year’s resolutions which could help you to save over £2,500 by the end of the year.  

1. Carry out a money saving challenge: Save up to £667.95 

“Money saving challenges are growing in popularity and can be a fun way of rewarding yourself with a stack of cash by the end of the year. Favourites include the £1 savings challenge, which could leave you with £365 by the end of the year, and the 1p savings challenge which could help you build up to £667.95 by the end of the year.”  

“If you’re considering the £1 savings challenge, you can easily set up a standing order which will directly transfer £1 from your current account to your savings account each day. What seems like a small daily cost could massively add up over time.” 

“Alternatively, opting for the 1p savings challenge could be great for those who want to gamify saving and gradually save for a larger target. The premise of the 1p savings challenge is that the amount you save increases as each day goes by. For instance, on day one you will save 1p, on day two you will save 2p, all the way until you are saving £3.65 on day 365.” 

2. Cut an unhealthy habit and save the money you would usually spend on it: Save up to £4,588 

“To provide an extra savings incentive, you could save the money you would otherwise spend on an unhealthy habit? For instance, over 1 in 20 Brits have stated that their New Year’s resolution is to give up smoking this year (Source: YouGov). With the average 20 a day smoker spending £4,588 a year on cigarettes (Source: TECC), you could put all the money aside that you would spend on the habit to improve both your health and finances.”  

3. Take part in the 30 wears challenge, cutting spending by half: Save £377* 

“With 2 in 5 Brits (40%) setting their 2022 New Year’s resolution to shop sustainably (Source: Yayzy), why not consider joining a number of Brits in making this one of your 2023 goals? There are various challenges you can participate in to save cash and the environment too, such as the 30 wears challenge.”

“The campaign encourages consumers to swap out purchasing a higher quantity of lower quality clothes every couple of months for more durable pieces, which will last at least 30 wears. Not only could this help you to save money on the seasonal clothing you will need to replace, but in general it could promote a more mindful way of shopping which will help you to save cash in other areas of your life.”  

4. Invest in reusable products: £95.21+ 

“Another way you could save money (and become more eco-friendly in the process) is to consider investing in reusable products where you can. A very simple way to save some cash is to ensure that you bring your own plastic bags to the supermarket as, given the charges to purchase new ones, you could save up to £42 per year (Source: Motley Fool).”

“You could also extend using reusable products to other areas of your life such as toiletries. For instance, if you opt for a reusable menstrual cup, which you can get for as little as £10.40 (Source: HeyGirlsUK), you could save approximately £12.40 a year on the cost of purchasing a popular brand of sanitary towels (Sources: Which?).”

“Why not opt to switch out disposable cotton wool for a reusable make-up pad? If you use three or four cotton wool pads each day, this equates to around 18 packets a year (Source: Irish Times), which you could expect to spend £41.40 on, if shopping at a popular retailer (Source: Boots). Whereas, if you purchase reusable cotton pads, which claim to last a year, you could expect to spend around £10.99 (Source: facetheory) which is a saving of £30.41.”

“If you usually accept a disposable cup every time you order a coffee at your local Costa or Starbucks, you could be missing out on savings by using your own reusable cup. When you use a reusable cup, Costa will give you an extra bean stamp on your loyalty card as part of their Costa Club benefits. With every 8 bean stamps you collect, you will receive a free cup of coffee that you can redeem in store. Similarly, at Starbucks you can get a 20p discount off any hot or cold drink you purchase, including cafes in train stations and cinemas (Source: Daily Record). Presuming you buy one coffee a week from the chain, this will give you savings of £10.40 across the year.” 

5. Switch to a vegetarian, or vegan diet: Save £8,346* 

“With over 2 in 5 Brits (43%) making it their New Year’s resolution to improve their diet this year (Source: Yougov), some may be considering switching to a vegetarian or vegan diet. Starting on a veggie diet can sometimes help you to reduce the amount you’re spending on your food bill, and reportedly up to a third (Source: Oxford University), as you can stick to cheaper substitutes for meat such as lentils, chickpeas, beans and vegetables. You can, of course, purchase mock-meat products; however, it is best to choose unbranded versions to get the most bang for your buck.” 

6. Reduce your alcohol intake or go tee-total: Save £1,000 

“Over 1 in 10 Brits (14%) have shared that reducing their alcohol intake is one of their New Year’s resolutions this year (Source: Yougov). With the average UK household spending £17.60 on alcohol per week, which works out at nearly £1,000 a year, (Source: DrinkAware) there are firm savings that could be made, particularly if you opt to go teetotal.” 

7. Reduce your screen time: £361* 

“1 in 10 Brits (16%) have set spending less time on social media as one of their New Year’s resolutions for 2023 (Source: Yougov). Reducing your social media usage and screen time is a great way to save money; not only are you reducing your exposure to tempting social media ads but you can also reduce the costs incurred from medical bills, such as paying for an eye test if you’re suffering from eye strain.”  

“With Brits spending 13 hours and two minutes looking at screens a day on average (Source: Lenstore), and a significant amount of time spent on mobile phones, it’s a good idea to assess how much data you are using on your mobile phone plan. You may find that you are paying above the odds for data that you are not using, particularly if you are paying for unlimited data. If you find this is the case, you can opt for less data which is not only cheaper but also helps to promote less time spent on your screens.” 

These New Year’s resolutions, to help you save £2,500 by the end of the year, have been brought to you by Financial Conduct Authority authorised and regulated credit broker CashLady.com