A new year is the perfect time for fresh starts. While you’re setting goals for your physical health, don’t forget about your financial well-being. Improving your financial habits can open the door to greater stability and make achieving your life goals a reality.
We’ve compiled practical, actionable tips to help you build lasting financial habits — designed not only to benefit your wallet but also to contribute positively to the planet. Here’s how to get started.
1. Make Time for Your Finances
Good financial health starts with consistency. The key is carving out regular time for your money goals. Try this:
Commit to a ‘date night with yourself’ each month. Get it in the calendar. Combine it with something enjoyable, like a home-cooked meal, to set the mood for productivity.
Use this time to review your financial goals, take action to manage your finances, analyse your progress, and make adjustments.
Make a start by bookmarking this article and working through suggestions on this page.
At the end of your session, schedule the next one so it becomes a recurring habit.
Consistency leads to results — small steps today can create significant changes over time.
2. Audit Your Expenses
Take a close look at your spending habits. Many modern banking apps help categorise your expenses, making this exercise simpler. Focus on your top five spending categories and find ways to reduce costs.
Tip: Start with unused subscriptions. According to Citizen’s Advice, 13 million people in the UK have accidentally taken out subscriptions. £688 million has also been spent on unused subscriptions. Go through your phone. Check your bank statements from the past few months. Cancel anything you haven’t used in the past year.
While trimming expenses, remember not to sacrifice essential aspects that support your health, like nutritious food or exercise. A balanced approach is key for keeping things sustainable over the longer term.
Consider some of these planet-friendly ways to cut costs and reduce your carbon footprint:
Swap one or two meat-based meals a week for plant-based alternatives. Find some recipes that you really enjoy (check out here), and get them into your regular routine.
Commit to walking, cycling, or using public transport, instead of spending money on taxi services or driving, where you can.
Create a clothes shopping budget for the year, and opt for second-hand clothing or repairs instead of buying new.
3. Pay Yourself First
The moment your pay cheque lands, set aside savings for your future before spending any of it. Automate this process by setting up a direct debit to your savings or investment account. Financial resilience begins with consistent saving.
Start by building an emergency fund to cover 3 to 6 months’ of expenses. Keep it separate from your main account, ideally in a cash ISA for tax-free interest. The less you see it every day, the less likely you dip into it unnecessarily. It also potentially makes it safer from fraud.
Want to make an impact? Choose an ethical bank that invests in sustainable projects. Instead of a mainstream bank that may still invest in fossil fuels. Resources like Ethical Consumer or Good with Money can help you find the right provider, so your money contributes to a greener future.
4. Set Up Savings “Pots”
Big expenses, like holidays or Christmas, can derail financial plans if you don’t prepare for them. Create separate “pots” (or separate savings accounts) for annual costs, and make regular contributions. Again, automating this step can ensure you stay on track without overthinking it.
5. Tackle Bad Debt First
Clear high-interest debts such as credit cards or personal loans. Those used only to fund your spending. These “bad debts” can be a significant strain on your finances.
Use your credit card wisely — only charge what you can fully repay each month.
Once your debt is cleared, redirect what you were paying towards savings or investments for faster progress.
This strategy reduces financial stress and accelerates your path to financial freedom.
6. Maximise Your Income
While managing expenses is vital, it is only one side of the equation. Increasing your income can make an even bigger impact. Explore opportunities to boost earnings, like freelancing, selling products, or pursuing a side hustle business. Alternatively, over the longer term, consider investing in yourself through new skills or education, to further your career.
Ask yourself — how can your skills benefit the planet? For example, could you offer sustainable products or eco-friendly services? A win-win for your wallet and the environment.
7. Set Inspiring Long-Term Goals
Ultimately life is about living. Money is a tool to help you live the life you want. Define goals that excite you — buying your first home, starting a new business, or planning a sabbatical. If you’re starting to design an exciting future, you are more likely to stick with good financial habits that help get you there.
Assign a cost to each goal and map out a savings plan. For short-term goals (under two years), keep savings in cash. For long-term aspirations, consider investing to some extent, to outpace inflation. Use your ISA allowance to protect these investments from taxes.
8. Reimagine Your Later Years
Rethink traditional retirement. Instead of stopping work abruptly, many now consider transitioning into part-time roles, consulting, or pursuing passion projects. Smaller changes are easier to cope with. This approach also keeps you socially connected, mentally engaged, and gives you purpose. It also means your pensions and investments may have to do less work to support you, and can be a crucial way to help later life be more affordable.
Use this phase to balance financial needs with purposeful living.
What approach could work for you? By starting to evaluate different options and imagining your preferred path, you can benefit from having time to prepare. Start planning today to save wisely and create opportunities for your preferred "encore career" in later life.
9. Diversify and Make a Positive Impact
Spread your investments across a number of asset types for resilience. Beyond stocks and mutual funds, consider social investments that support causes like renewable energy or community projects. There are a number of investment platforms in the UK that make it easy to align investments with your values.
As with any investment, they are not risk-free. These do often come with their own unique set of risks that are different to investing in the stock market, and so can help to diversify your portfolio. The best providers will provide a due diligence of these risks, and a clear communication of what these are. Although financial returns are likely to be lower than the stock market, they can provide you with a “social return” from having a tangible beneficial impact on helping to support society. They could also help to balance risk in your portfolio.
Final Thoughts
Taking control of your finances doesn’t have to feel overwhelming. By combining small, consistent actions with a focus on sustainability, you can create a financial plan that supports both your future and the planet.
Make this year the one where you commit to financial habits that last for good. And if you’d like extra guidance, the Planet Positive GAME Plan is here to help. It can help give you:
Clarity on what truly matters to you and your life’s purpose
A financial plan that reflects your values and creates a meaningful impact, as well as a clear roadmap to achieve it.
Confidence to manage your wealth, in a way that is optimal for both you and the planet.
The ability to take charge of your future now — and design your best life before it unfolds on its own.
Get in touch to find out more.
Above all, start today — your future self will thank you!
(Images are AI-generated)
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