How to do a post-Christmas money detox

It’s not just your waistline that needs some serious TLC after Christmas, usually your bank account does too.

The start of the new year is the perfect time to his refresh on both your health and finances.

Here are five simple steps to detox your finances and start the year with a clean slate:

Declutter subscriptions

The average person in the UK spends nearly £500 a year on subscriptions and up to half of these subscriptions aren’t even used, according to a survey by Vision Express. From streaming services to forgotten gym memberships, unused subscriptions can quietly drain your bank account without you even realising. Review your direct debits and standing orders to cancel anything you no longer use or need.

Create a budget that works for you

Having a budget keeps your spending in check and makes sure your savings are on track. It isn’t about restriction; it’s about prioritisation. Use free tools like our budget calculator to understand where your money is going and ensure your spending aligns with your goals.

Switch and save

You can save over £300 on essential bills by switching providers.  Whether it’s your energy supplier, mobile contract or insurance, comparison websites like Uswitch MoneySuperMarket can help you find better deals.

You might also be eligible to reduce some of your bills, such as broadband, water and energy by as much as 50% with a social tariff. Social tariffs are discounted deals for people claiming universal credit, pension credit and some other benefits. Speak to your provider to see how they can help.

See if you’re missing out

£23bn worth of financial support goes unclaimed each year. Some people think they’re not eligible for extra money because either their household income is too high, or they work; but often this isn’t the case. Use online benefit calculators to see if you could boost your monthly income.

Set financial goals

From building an emergency fund, paying off debt or saving for a holiday, clear financial goals give you a purpose for saving. Use the SMART goal-setting technique:

• Specific: Be clear about what you want to achieve
• Measurable: Quantify your goal so you can track your progress
• Achievable: Make sure your goal is realistic
• Relevant: Consider why you want to achieve your goal
• Time-based: Set a deadline to achieve your goal

To help you achieve your money goals, you could use savings accounts with competitive interest rates to make your money work harder or look into different investment opportunities like ISAs or SIPPs. It’s also worth monitoring your credit score and taking action to improve it to make it easier to get loans, credit cards and mortgages at better rates.

Tackle debt head-on

If debt feels overwhelming, you’re not alone. Speak to someone like us who provide free independent debt advice and solutions to help you regain control.