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Check your bank balance
All that festive cheer might have resulted in one too many contactless taps over the holidays. If you’ve lost track of your spending during the Christmas break, it might feel scary to look at your bank balance right now – but it’s the first step towards feeling more confident and in control of your money.
Look over your spending and review your purchases. Can you spot any spending habits that you could change to put you in a better financial situation next December? For example, if you did some last minute Christmas shopping online that resulted in paying extra for express delivery, can you start sooner next year and take advantage of free delivery?
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Budget until payday
Once you’ve had a look at your balances, it’s a good idea to make a plan for the month ahead. Many people get paid early in December, meaning the January payslip can feel like a lifetime away.
Take a few moments to look at your calendar and make a budget to see you through the next few weeks. A short-term plan can help you feel more in control and reduce money stress.
Make sure you plan for your essentials first, like food shopping, and don’t be afraid to turn down social occasions in January if it’s looking too costly. Your social battery as well as your bank balance might thank you for taking the time for yourself this month after a hectic festive period.
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Make a plan to repay
Many people rely on credit to cover costs during the holidays, with 1 in 3 Brits using BNPL (Buy now pay later) in 2024 (https://www.finder.com/uk/buy-now-pay-later/buy-now-pay-later-statistics) through schemes such as Klarna, Clearpay or PayPal.
It’s important to remember BNPL is not designed for long-term borrowing. As you budget for January 2026, make a plan for your repayments. Most providers let you split the cost over a few payment cycles, so you can factor in smaller instalments over a longer period if needed. Planning your repayments early helps prevent stress later.
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Make a note of what matters to you
Amidst this planning, it can help to make a few notes (while it’s fresh in your head) about what meant the most to you this year. This might allow you identify areas you can cut back on costs next year.
For example, maybe you realise it wasn’t worth buying the fancy, expensive Christmas crackers (maybe the cheaper option with the terrible jokes are part of the charm anyway!). Likewise, you might realise it was worth splurging on a luxury gift for your partner – and decide to start saving earlier this year to avoid relying on credit next time.
This kind of reflection can help you spend more intentionally in the future, focusing your money on what truly adds value.
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Start a savings challenge
To avoid a festive hangover in January 2027, why not start a savings plan now to give yourself a boost come December 2026? With the 1p a day challenge you can save £667.95 by the end of the year. Start by saving 1p on January 1st, 2p on January 2nd, 3p on January 3rd, and so on, increasing the amount by a penny each day until you save £3.65 on December 31st.
There are some other creative savings challenges you could try in this article: https://www.ybs.co.uk/savings/guides/money-saving-challenges
Summary
January can be a tough month with the festivities over, the winter days still cold and dark, and budgets feeling a bit tighter than usual. But it’s also a chance to pause, reflect, and reset. By taking small, practical steps now, you can move into the new year feeling more confident, informed, and ready to make your money make sense.
Let’s start 2026 on the right foot!
For more information, check out our New Year Reset guide with tips on how to make 2026 your most financially smart year yet: https://moneyready.org/update/new-year-reset/
Explore our Learning Hub for lots of useful and practical guides covering all things money – from banking and borrowing to spending and saving.