Why January is the perfect time to look at your budget

After an indulgent and expensive Christmas period, the new year can be a great time to take stock and reset.

We want to feel in control of our lives and be ready for whatever might come our way in 2026.

And one of the best ways to do that is to get on top of your household budget.

When you think of budgeting, you might just think of making sure you’ve got enough money to pay your bills.

But it also means knowing how much you can spend on treats and non-essentials, without putting yourself at financial risk.

Having this certainty can help you enjoy life, without having to worry afterwards about how to make ends meet and cover essential costs.

More people want to review their budget in 2026

Many of us will have made new year’s resolutions that involve money, such as wanting to save more or paying off debts.

But it’s notable that more of us plan to pay closer attention to our budgets.

According to research by Pensions UK, 16% of people intend to create or update their household budget in 2026.

That’s up from 15% last year.

Of course, that’s only a modest increase.

But it does show that more people are recognising that if you understand your money, you can feel more in control.

The benefits of budgeting

It’s easy to feel weighed down by essential expenses like rent, childcare and energy bills.

But getting on top of your budget can help to ease this burden.

If you know exactly how much money you have coming in, you can then look closely at where it’s going.

You might spot areas where you can make savings, along with expensive habits that are costing you unnecessarily.

For instance:

• are you paying for subscriptions you’ve forgotten about or don’t use?
• are you paying over the odds for utilities like broadband when you could get a better deal elsewhere?
• are the costs of small but regular expenses, like a daily coffee, mounting up?

Once you know where your cash is going, you’ll be in a better position to:

• avoid overspending
• free up money for savings and essential expenses
• not need to rely on credit
• prepare for unexpected costs without panic

Read our guide on how to create a budget to help you get started on identifying where savings can be made.

And try our handy budget planner - it’s free and easy to use.

Budgeting isn’t just about numbers

Money worries can cause lots of stress, anxiety and sleepless nights.

But understanding what’s coming in and going out, and knowing you’re living within your means, can help you feel much calmer and more in control.

And that can have countless lifestyle benefits, from fewer arguments at home about money to feeling confident about treating yourself to something.

We all want to enjoy our lives and focus on what really matters, rather than have to count every single penny each day.

Getting to grips with your household budget can be a big step in that direction and help you move forwards with more confidence and certainty.