How to be £1,000 better off in the new year (without burning out)

January can feel like a financial hangover. Bills land, credit card statements arrive and money suddenly feels tight again.

But the good news is this: you don’t need a second job or extreme budgeting to turn things around. By making a few simple checks and tweaks early in the year, many households could be hundreds - even £1,000 or more - better off by next December.

Here are some realistic ways to boost your money in 2026, without making life miserable.

1. Start with an energy and utility check-up

A quick review of your household bills can free up cash almost instantly. Look at gas and electricity tariffs, broadband, TV packages, and mobile plans to see if you’re paying for extras you no longer need. Comparison websites can highlight cheaper deals, and for households on low incomes, social tariffs or discounted plans may be available. Find out more about social tariffs and who qualifies here.

Sight changes to the way you behave can also make a difference. Turning appliances off at the plug, lowering your thermostat by 1 degree, and using smart plugs or timers can reduce bills by £5 to £15 a month. Over a year, that adds up to around £180 saved - all without changing your lifestyle. Find more energy-saving tips and tricks to reduce your bills here.

2. Review your debts and make a plan

Debt can be overwhelming, but starting the year with a clear picture of what you owe makes it manageable. List your balances, interest rates, and minimum repayments. You can use our free budgeting to make it easier to do. Decide whether to tackle the highest-interest debts first to reduce costs, or focus on smaller balances to build motivation.

Even adding an extra £20 to £30 a month to repayments can reduce interest paid over the year, saving roughly £240 to £360. Reviewing your monthly spending to free up extra cash - perhaps trimming subscriptions or takeaways - can make a real difference. And if bills feel unmanageable, speak to us, as we can help you take control.

3. Check you’re not missing out on benefits

Many households leave money unclaimed each year. In 2025/26, an estimated £24.1 billion in benefits is expected to go unclaimed, affecting roughly seven million households. Commonly missed support includes universal credit, council tax support, childcare payments, and allowances or rebates.

Spending a few minutes using our free benefits checker could put hundreds - sometimes even £500 to £1,000 a year - back into your pocket. Even if you think you’re already claiming everything, eligibility changes regularly, so checking annually is worth it.

4. Try a mini-budget or no-spend challenge

You don’t need a full spreadsheet to save money. Start small with a no-spend week or month in one area, like groceries, takeaways, or daily coffee. Cutting back £5 to £10 a week can save around £250 to £500 over the year. Find out more about the no-spend challenge here.

Tracking progress, either in a notebook or in our free budgeting tool, makes savings feel real and keeps motivation high. Repeating the challenge in different categories throughout the year increases the amount you save.

5. Turn saving into a guaranteed return with Help to Save

For those on Universal Credit or Working Tax Credit, Help to Save is a simple way to grow savings with a guaranteed government bonus. Saving up to £50 a month earns a 50p bonus for every £1 saved. After two years, that’s £600, and after four years, an additional £600.

Even small, regular contributions can start adding up quickly, providing a future boost to your finances without any risk. Here’s everything you need to know about Help to Save.

6. Review phone, data, and subscription plans

Many people overpay for mobile contracts or subscriptions they rarely use. Reviewing bills and switching to plans that match your actual usage can save £10 to £30 a month, while cancelling unwanted subscriptions can add £5 to £10 a month.

Combined, this can add roughly £180 to £480 a year back into your pocket with minimal effort. It’s a simple, painless way to boost your finances.

And over four million low households miss out on saving up to 50% on their broadband and mobile phone bills through social tariffs. Find out about how these can help you here.

7. Stop energy vampires at home

Devices left on standby, chargers in sockets, and unnecessary lighting quietly drain money. Switching off appliances fully, using timers or smart plugs, and adjusting heating schedules can save £5 to £10 a month, or £60 to £120 a year.

These small, low-effort changes mean money stays in your pocket without affecting comfort or lifestyle. Find a list of energy vampires here.

8. Monetise skills you might not think of as ‘skills’

You don’t need a full-time side hustle to earn extra money. Everyday skills, such as helping someone fill in forms, set up technology, organise paperwork, or create a simple household budget, are always in demand.

By charging £15 to £30 an hour for a couple of hours a week, you could earn £500 to £1,000 a year, offering a flexible and practical way to supplement your income. Here's some tips on starting a side hustle.

9. Do short-term hustles for seasonal work

Rather than committing to a permanent second job, focus on time-limited roles such as exam invigilating, event stewarding, or seasonal retail work. Check out websites like Indeed, StaffDirect or StudentJob, as well as retailers' own for these types of roles. For exam invigilating, try your local council and school websites.

A few well-timed stints could generate £500 to £1,000 across the year, giving a cash boost without causing burnout. Planning these around holidays or quieter periods makes them manageable alongside your regular schedule. Here’s some extra ideas on different ways you can make money on the side.

Things to remember

Being £1,000 better off doesn’t require extreme sacrifices. It comes from a series of practical, manageable steps: checking benefits, trimming unnecessary spending, planning repayments, boosting savings, and occasionally earning a little extra. Start early, plan carefully, and 2026 could be your most financially stress-free year yet.