You may find yourself a little strapped for cash now Christmas is over. If you need some new year money-saving ideas, you’ve come to the right place. Christmas is an expensive time of year and when January rolls around, your account might be looking as bleak as the weather.
Many people see a new year as a fresh start, and January is the perfect time to review your spending habits and start saving.
Achieving your financial goals begins with the first step, so make this new year the year you start saving like a pro.
To help you get started, here are nine new year money-saving ideas:
1. Start Budgeting
Our top new year saving idea is to start budgeting. Budgeting is so underrated. The benefits of budgeting aren’t discussed enough, and it’s such as simple way to get on top of your finances and start saving in the new year.
During those few days between Christmas and new year when no one knows what day it is, spend some time planning your January budget. You can create a simple budget on programs like Excel, purchase a budgeting notepad, or simply write it down on paper.
Money-saving apps like Hyperjar help you track your spending on the go to stay on track with your budget.
· Factor in any pre-planned social events
· Allow for any birthdays or special occasions
· Figure out your essential and on essential expenses
· Allocate realistic amounts to your budgeting categories
· Review your budget regularly
Learn more about how to budget and budgeting basics in our recent blog.
2. Try the New Year Money-Saving Challenge
January is a great time to start a new year money-saving challenge. A saving challenge is a fun way to keep motivated, and you’ll save more than you realise.
This January, take on the new year penny-saving challenge. You can start with just 1p! To complete the 1p saving challenge, you need to save 1p on day one, 2p on day two, 3p on day three and so on.
You can do this with cash or via bank transfer. Simply transfer the amount into your HyperJar savings jar daily and watch your savings grow. You’ll have £667.95 saved by the end of the year.
If you want to boost your savings further, try the 52-week challenge. The 52-week challenge will automatically save £1378.00 by saving the corresponding amount for each week of the year (£1 in week one, £2 in week two, etc.).
You could also try the weekday saving challenge, which will save you £780 just by saving each weekday for one year. You save £1 on Monday, £2 on Tuesday, £3 on Thursday etc. and then take a break from saving at the weekend.
3. Set Clear Financial Goals
The third new year money-saving idea is to set clear financial goals. Setting goals can set the trajectory for financial success over the next year and keep you motivated and driven. Your goals should be ambitious but also realistic. Set goals that will challenge you but aren’t unachievable.
Your financial situation may change during the year, such as if unexpected expenses come your way or your income changes, so review your goals regularly to check they are still in line with your circumstances.
Here are some ideas for financial goals you could set as your new year money-saving challenge:
· New Car
· Pay off debt early
4. Sell Old, Unwanted Items
Selling your old, unwanted items is a good method of saving money in the new year. You could have lots of items in your home that you no longer need, want, or wear that could make you money.
Take the time to decide what you no longer want and upload them onto online sites or apps to make money easily. Some great places to sell unwanted items are Facebook Marketplace, Vinted, eBay, and Depop.
Selling your items can be a fun and creative way to save money . You’ll also de-clutter your home and create less waste as your items are going to a new home rather than being thrown away.
5. Try the No-Spend Month
To save money in the new year, try a no-spend month. During a no-spend month, you don’t spend money on anything unnecessary. Once your essentials expenses have been paid, you can’t buy anything else for one month. This includes takeaways, clothes, beauty products and anything else that is deemed a non-essential expense.
Although this challenge is extreme and not designed for long-term saving, it’s interesting to discover how much money you could save when you don’t buy the extras.
You can read more about how to do a successful no-spend month in our recent blog article.
6. Sign up for Cashback Apps
Cashback apps are well known, but they aren’t widely used. Mainly because people aren’t aware of how to use them. Cashback websites will pay you a percentage of your total spend when you purchase something through the cashback website rather than going direct to the retailer.
If you’re going to be spending money anyway, you might as well earn some money back.
Some of the most popular cash-back sites are:
· Top cashback
Earning money from cash-back apps can be especially useful if you have a lot of expenses coming up, such as a new baby, house renovations, or Christmas.
7. Cook at Home
Cooking at home can help save money in the new year. The cost of food is rising, so it’s important to create a food budget to keep on top of your supermarket spending. Cooking at home will save you money on food and transport costs such as petrol, parking, or train fares.
Meal plan – Whether for work or at home, meal planning will keep your costs down, stop the need for extra trips to the supermarket, and save you time during the week.
No takeaway month – If you’re guilty of overspending on takeaways, challenge yourself to a no takeaway month.
Get creative – Learn to cook new things and get creative with ingredients you already have at home. You will spend less on food if you use up your home food.
Food is often one of the key areas where people tend to overspend. However, it’s important not to deprive yourself and include treats to stay motivated.
8. Evaluate and Compare Costs of your Services
When was the last time you reviewed the cost of your services and subscriptions? It’s safe to say the providers won’t be in touch to offer cheaper deals, so you must be proactive. There’s not much money to be saved on energy bills, but you could save in other areas.
· Cancel subscriptions that you don’t use or just keep one, such as Netflix
· Ask your phone provider for a cheaper deal. This is more useful for sim-only plans
· Switch your broadband provider
· Search for cheaper home, car, or pet insurance
9. Wait a Month Before Making a Non-Essential Purchase
The 30-day challenge is another rule you can implement to save money in the new year. If something catches your eye that is non-essential, you wait one month before you make the purchase. If you still want the item after 30 days, you can buy it.
This helps stop impulse spending, falling for trends, or spending money on things you don’t want.
You can take a photo of the item or take a screenshot and then set a reminder in your phone for 30 days. You can then return to the store or buy the item online if you still want it after the month has passed.
These nine new year money-saving tips will help you to achieve your financial goals. But above all, an effective budgeting strategy is the key ingredient in ensuring you save money in the new year.
Visit the HyperJar website to find out how our app and jars offer an easy way to save money and spend mindfully.
If you found this article useful and want to explore more new year money-saving tips or learn more about saving and spending well. In that case, you might like How to save money as a teenager, How much should I have in an emergency fund?, or Breaking down typical holiday costs.