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8 Hacks to Start Saving in the New Year

The New Year often serves as motivation to begin making resolutions and kick off
the year on a high note. In 2025, you may have resolved to travel more, lose
weight, get a new job, transition into a career change, etc. However, for those who
have resolved to save more money or get their finances in order, this article is for
you.

2025 is likely to bring more difficult financial times. For most people, the realities of
inflation and growing household expenses in a weak economy have begun to set in.
Moreover, January is always a tough month, making you feel the pinch from the
Christmas and New Year celebrations.

Although there are many ways to start saving, some are more complex than others.
Some people look into lenders or a reputed payday loan company for quick
emergency cash, while others choose to start a side hustle to earn extra quid.
Saving money does not have to be difficult or complicated; setting aside spare
change is a simple place to start, and you’ll be surprised at the results.

If you want to save as much as you can in the upcoming year, here are 8 hacks to
encash and kick-start your “saving spree” in 2025.

1. Try the 50:30:20 Split
The timeless wisdom of ‘keeping some money away for a rainy day’ lives on year
after year. If you don’t know how to split your monthly paycheck, try the 50:30:20
split; a smart way to allocate your earnings.
Once your wage comes in, allocate 50 percent for essentials and bills (mortgage,
rent, and debt), 30 percent for leisure (eating out, shopping, and other non-
essentials), and 20 percent for savings.

2. Drive Smarter to Save Fuel Costs
Fuel prices in the UK have reached record highs, but did you know the way you
drive can impact your savings? Whether you’re travelling to work or heading out for
a trip, making small adjustments to your driving style can make a huge difference.
For instance, try driving at a slightly lower speed to improve fuel efficiency. Unless
you are in a rush, dropping your speed can significantly save in fuel over time.

Additionally, avoid braking suddenly and bringing your car to an abrupt halt.
Instead, you can save fuel by slowing down your vehicle’s momentum gradually
and coming to a complete stop. It also reduces the wear and tear on your brakes,
extending their lifespan.

3. Sell Old, Unwanted Items
This hack is a no-brainer when you own a lot of items that you no longer need,
want or use. You’re practically sitting on a tiny money-making mine!
Decide and categorise the items you want to sell for some extra cash. You can
upload their photos on online sites or apps or host a neighbourhood garage sale to
earn extra quid.
Selling items you no longer need or use is also a great way to declutter your home
and generate less waste, as the items are used by someone else instead of being
thrown in rubbish bins. Like they say, “One man’s trash is another man’s treasure”
How’s that for a win-win-win situation?

4. Install a Smart Meter
In the UK, smart metres are used to measure household energy use. Your energy
provider receives this data, which enables them to provide you with a more
accurate and possibly lower electricity bill.
Install a smart meter to get a clear number for your electricity and gas usage. You
can cut down your electricity bills by almost £20 by just turning off devices that
aren’t being used.

5. Make the Most of Birthday Freebies
Another clever hack to save money is by taking advantage of birthday freebies and
discounts offered by retailers. Many retailers reward customers with coupons,
complimentary products, free trials, and discounts on signing up for their email list.
Take up these offers and special incentives on birthdays and anniversaries to
accumulate significant savings on your groceries, apparel, cosmetics, and other
products and services.

6. Cook at Home
Planning to start saving money and improving your cooking as part of your New
Year resolutions? This next hack will kill two birds with one stone!
Brush up on your cooking skills and save money at the same time by cooking at
home. Plan your meals ahead of time and buy groceries accordingly. Whether for
work or home, meal planning keeps your costs down and saves time and energy
from running to the grocery store.

7. Check for Tax Rebates
Did you know that you might be paying too much tax without realising it? Common
reasons for overpaying taxes include spending on work expenses and not being
reimbursed, incorrect tax code and using an emergency tax code.
In such cases, you’ll receive a tax credit as you’ve paid more tax than what you
owe the government. Check your tax files and reclaim the extra amount from the
government website.

8. Shop During Sales
After Black Friday and Cyber Monday, keep an eye on January sales events. It’s a
time when many retailers knock down prices after the Christmas rush. Big retailers
often push major discounts on unsold stock and make room for new incoming
stock.
Make the most of these sales if you’re looking to make a big purchase, such as an
appliance or device, or searching for birthday presents to gift your family and
friends. Tread carefully on this hack and don’t buy stuff that you don’t need.

To Sum Up
If you’re tired of being broke and penniless at the end of each month, following
these 8 money-saving hacks can make a difference. Change can be hard, especially
when looking to develop good financial habits. Instead of trying too much too soon,
take it one step at a time to avoid failure.
All it takes is the will to change followed by consistent efforts towards your money-
saving goals for the year.