Money-saving resolutions and how to stick to them

Most of us have made a money-saving resolution at some point, only to watch it fizzle out by February.

It’s not that we don’t want to save, but life gets in the way.

Unexpected bills pop up, old habits creep back, and before you know it, your savings plan is out the window.

But what if I told you that saving money doesn’t have to be painful or complicated?

With the right strategies, you can set resolutions that work and stick to them all year long.

In this guide, I’ll walk you through practical steps to create money-saving resolutions that fit your lifestyle, plus tips to help you stay on track.

Whether you want to build an emergency fund, pay off debt, or simply spend less on takeaways, you’ll find real-world advice you can start using today.

Setting meaningful money-saving goals

We often make resolutions without a clear picture of what we want to achieve.

To make your efforts stick, it’s important to define what you’re saving for. This gives you motivation and helps you track your progress.

Think about what you’d like to achieve with your savings. Do you want to save for a deposit on a house, a holiday, to pay off debt, or build an emergency fund?

Having a specific goal in mind makes saving feel less like a restriction and more like a step towards something you truly want.

Here’s what you need to do:

• Decide what you want to save for (e.g. a holiday, emergency fund, new car, or just a rainy day).
• Set a clear target amount and deadline. For example, “Save £500 for Christmas by December.”
• Break big goals into smaller chunks. If £500 feels overwhelming, try £50 a month.

Prep steps: Don’t try to tackle too many goals at once. Start with one or two that are most important to you.

Be realistic about the costs and timelines. It’s better to set achievable goals than to get discouraged by overly ambitious ones.

Best practices and tips

• Write your goal down and put it somewhere visible.
• Use a savings calculator like MoneySavingExpert’s Budget Planner to check what’s realistic.
• Start small, success builds confidence.

Recommended tools

• Budgeting apps like Emma, YNAB, or Monzo for tracking.

By clearly defining your goals, you’re setting a strong foundation for your money-saving resolutions.

This clarity will guide your actions and make it easier to stay focused.

Automating your savings

One of the most effective ways to save money consistently is to automate the process.

When saving becomes automatic, you’re less likely to skip it, and it happens without you having to actively think about it each time.

Automation involves setting up regular transfers from your current account to your savings account.

You can usually do this through your bank’s online platform.

Choose an amount you’re comfortable saving each pay period and schedule the transfer to occur shortly after you get paid.

Here’s what needs to be done:

1. Determine how much you can automate: Look at your budget and decide on a realistic amount to save regularly.
2. Set up recurring transfers: Log in to your online banking and find the option to set up automatic transfers to your savings account.
3. Choose the frequency: Decide if you want to transfer weekly, bi-weekly, or monthly, ideally aligning with your payday.

Prep steps: Make sure you have enough funds in your current account to cover the automated transfer to avoid overdraft fees.

Start with a smaller amount if you’re unsure how it will affect your cash flow, and you can always increase it later.

Here are some helpful tips:

• Treat savings like a bill: By automating it, you prioritize saving just like you prioritize paying your essential expenses.³
• Start small if needed: Even a small, automated amount can add up over time. The key is consistency.

Many banks and budgeting apps allow you to easily set up recurring transfers. Check your bank’s website or app for this feature.

Automating your savings takes the decision-making out of the equation and makes saving a seamless part of your financial routine.

This simple step can significantly increase your savings over time.

Tracking your spending

To effectively save money, it’s crucial to know where your money is currently going.

Tracking your spending helps you identify areas where you might be overspending and where you can potentially cut back.

There are several ways to track your spending. You can use a notebook, a spreadsheet, or a budgeting app.

The method that works best is the one you’ll consistently use. The goal is to get a clear picture of your income and expenses.

Here’s what you need to do:

1. Choose a tracking method: Select whether you’ll use a notebook, spreadsheet, or an app.
2. Record your expenses: For a week or two, diligently record every purchase you make, no matter how small.
3. Categorize your spending: Group your expenses into categories like groceries, transportation, entertainment, etc.

Prep steps: Be honest and thorough when tracking your spending. Don’t forget small purchases.

This step is about understanding your current financial habits without judgment.

Here are a couple of best practices:

• Review regularly: At the end of each week, review your spending to see where your money went.
• Identify areas for reduction: Look for categories where you might be able to spend less.

There are many excellent budgeting apps available, such as Mint, YNAB (You Need A Budget), and PocketGuard.

They can often automatically track your transactions if you link your bank accounts.

Find easy wins for instant savings

Let’s face it, saving money feels good when you see results quickly.

The good news? There are plenty of easy wins that don’t require a total lifestyle overhaul.

What to do

• Review your regular bills. Can you switch to a cheaper provider for energy, broadband, or insurance?
• Cancel unused subscriptions or memberships.
• Make a weekly meal plan to cut down on food waste and impulse buys.

Prep steps and warnings

• Check your contract terms before switching providers to avoid exit fees.
• Don’t cut out everything you enjoy as balance is key.

Best practices and tips

• Use comparison sites like Uswitch or Compare the Market to find better deals.
• Batch cook meals and freeze portions to save time and money.
• Try a “no-spend” weekend and find free activities in your area.

Recommended tools

• Uswitch for energy and broadband.
• Too Good To Go for discounted food.

Quick wins boost your motivation and free up cash for your bigger goals. Start with the easy stuff, you’ll be surprised how much you can save!

Making small, sustainable changes

Instead of trying to overhaul your entire financial life at once, focus on making small, sustainable changes.

These are easier to stick with in the long run and can still have a significant impact over time.

Think about small daily or weekly expenses that you could reduce. This might be getting coffee out less often, packing your lunch instead of buying it, or finding free alternatives for entertainment.

Here’s what you need to do:

1. Identify small spending habits to change: Think of 1-2 areas where you can easily cut back.
2. Set realistic goals for these changes: For example, instead of never buying coffee out, aim to do it only once a week.
3. Track your progress: Monitor how much you’re saving by making these small changes.

Prep steps: Don’t aim for perfection right away. Small, consistent changes are more effective than drastic, unsustainable ones.

Here are some helpful tips:

• Focus on one or two changes at a time: Once those become habits, you can add more.
• Celebrate small wins: Acknowledge your progress to stay motivated.

Consider using a habit-tracking app to help you stay consistent with your new money-saving habits.

Small, consistent changes are the key to building lasting money-saving habits. They feel less restrictive and are easier to incorporate into your daily life.

Troubleshooting common challenges

Sometimes, even with the best intentions, sticking to money-saving resolutions can be challenging.

Here are a few common hurdles and how to overcome them:

• The “all or nothing” mentality: If you slip up and overspend in one area, don’t let it derail your entire effort. Just get back on track with your plan. A single mistake doesn’t negate all the progress you’ve made.
• Feeling deprived: If you feel like you’re missing out, try to find free or lower-cost alternatives for the things you enjoy. For example, have a movie night at home instead of going to the cinema, or explore free events in your community.
• Unexpected expenses: Life happens. Build a small buffer into your budget for unexpected costs or prioritize building an emergency fund so you’re prepared when these situations arise.

To fix these issues:

• Practice self-compassion: Be kind to yourself when you face setbacks.
• Find joy in saving: Focus on what you’re gaining (progress towards your goals) rather than what you might be “missing.”
• Plan for the unexpected: Having a financial safety net can reduce stress and prevent you from abandoning your savings goals when life throws a curveball.⁷

Remember that saving money is a journey, not a race. There will be ups and downs, but consistency is what matters most in the long run.

Next steps and advanced techniques

Once you’ve got the basics of saving down, you might want to explore more advanced techniques to grow your money further.

• Investing: Consider investing a portion of your savings. This can potentially offer higher returns than traditional savings accounts over the long term. Start by researching different investment options and perhaps consulting a financial advisor.
• Increasing your income: Look for ways to earn extra money, whether through a side hustle, freelancing, or negotiating a raise at your current job. More income can accelerate your savings goals.
• Optimizing your budget: Regularly review your budget to see if there are any other areas where you can save or reallocate funds to your savings goals.

These next steps can help you take your financial health to the next level once you feel comfortable with consistent saving.

Conclusion

Saving money doesn’t have to feel like a punishment.

By setting meaningful goals, automating your savings, tracking your spending, and making small, sustainable changes, you can build habits that truly work.

Remember to be patient with yourself and celebrate your progress along the way.

Changing habits isn’t easy, but it isn’t difficult either. It just takes enough willpower and a strong enough desire to change.

Oh, and this guide!

Frequently asked questions

What if my income is low? Is it still possible to save money?

Absolutely. Even with a lower income, focusing on tracking your spending can reveal areas where you might be able to save small amounts. Automating even a small weekly transfer to a savings account can start building a habit and a small cushion over time.

Look for opportunities to reduce expenses, no matter how small they seem. Every little bit counts and consistency is key.

How do I stay motivated when saving feels difficult?

Remind yourself of your goals regularly. Visualize what you’re saving for. Track your progress and celebrate milestones, no matter how small.

You can also find an accountability partner or join online communities focused on saving to share tips and encouragement. Focusing on the positive outcomes of saving, like financial security or achieving a dream, can also help maintain motivation.

What’s the best budgeting method to help with saving?

There isn’t one “best” method, as it depends on your personal preferences and lifestyle. Some popular methods include the 50/30/20 rule (allocating 50% of income to needs, 30% to wants, and 20% to savings and debt repayment), zero-based budgeting⁹ (every pound is assigned a purpose), and envelope budgeting (using cash in labelled envelopes for different spending categories).

Experiment with a few to see which one helps you best understand and manage your money.

How much of my income should I aim to save?

A common guideline is to aim to save at least 15-20% of your net income, but this can vary depending on your financial goals and circumstances. Start with a percentage that feels comfortable for you and gradually increase it as you can.

The most important thing is to save consistently, even if it’s a smaller amount to begin with.

Are budgeting apps really helpful for saving money?

Yes, many people find budgeting apps very helpful. They can automate the tracking of your spending, categorize your expenses, help you set budgets, and visualize your financial situation.

This can make it easier to see where your money is going and identify opportunities to save. Many also allow you to set savings goals and track your progress towards them.¹¹