January can feel like a long month. With festive spending behind you, a looming credit‑card bill, and payday still a way off, it’s easy for things to feel tight. But this time of year is also the perfect opportunity to pause, reassess, and reset. A few practical moves now could make 2026 a calmer, more confident financial year for you.
Why January Needs a Money Reset
- According to the Bank of England, UK households spend on average about £713 more in December than in a typical month, a 29% increase.
- Nearly 1 in 12 people (8%), roughly 4 million UK adults, rely on credit to fund their Christmas spending.
- Among those borrowing for Christmas, many anticipate it will take 6 months or more to repay, adding financial stress well into the New Year.
If that sounds familiar, you’re not alone, and that’s exactly why a “January Money Reset” matters right now.
Cut Spending: Sensibly and Sustainably
Resetting your finances doesn’t mean depriving yourself; it’s about making smart choices. Some simple tweaks could include:
- Planning meals and shopping with a list to avoid impulse buys.
- Switch big-brand products for supermarket own-brand products on your weekly shop. Small savings from ‘downshifting’ can quickly add up.
- Cancelling or pausing subscriptions you rarely use (streaming, magazines, gym, etc.).
- Reviewing household bills, e.g. energy, insurance, utility tariffs, to find possible savings.
- Setting realistic weekly limits for non‑essential expenses like takeaways or treats.
Check our Budgeting Guide for more practical tips on tracking spending and reducing unnecessary costs.
Build a Budget That Reflects Real Life
A budget is your financial roadmap. Here’s a simple way to start:
- List all income sources: wages, benefits, any extra income, etc.
- Track all outgoings: fixed costs (rent/mortgage, utilities, bills), variable expenses (food, transport, childcare, etc.), and debt repayments.
- Prioritise essentials first, then savings or debt repayments, then discretionary spending.
- Even small monthly contributions towards your debt(s) or savings can help build momentum.
- Review and adjust regularly: as income or expenses change, so should your budget.
Explore Ways to Boost Your Income (Even Slightly)
Even a small source of extra income can make a real difference:
- Taking extra shifts or overtime at work.
- Picking up a side hustle or freelance work, even a few hours a week adds up.
- Selling items you no longer need, gifts, gadgets, kids’ toys, or clothes. You can do this on Vinted, eBay, Gumtree, Depop, etc.
- Checking entitlement to state benefits or cost-of-living support.
- Seeking guidance on increasing income via Citizens Advice.
Even modest additional earnings can ease pressure on your budget and help you chip away at debt faster.
4. Get Debt Advice Early, It Could Change Everything
Waiting until debt becomes overwhelming often makes things harder. Getting advice early can help you:
- Understand realistic options, from manageable repayment plans to tailored solutions.
- Avoid “debt hangovers” that linger long after the festive lights are packed away.
- Achieve clarity and peace of mind knowing what you owe and how you can tackle it.
You can start your free, confidential assessment now using our online debt advice tool. It takes less than 15 minutes and can give you a personalised roadmap to financial stability for the rest of the year.
Take Action Today: Make 2026 Your Financial Restart
A “January Money Reset” doesn’t have to feel overwhelming. Instead of overhauling everything overnight, take small, manageable steps now:
- Trim 1 or 2 non‑essential expenses this month.
- Create or refresh a budget so you know exactly where your money goes.
- Consider a small extra income boost.
- Try getting tailored debt advice using our online tool.
By acting now, you set yourself up for a calmer, more manageable financial year – one where debt doesn’t hang over your summer or next Christmas.
