Money decisions to make now for a better 2026

Independent

6 days ago

It may seem too early to be thinking about next year, but when it comes to your finances, the decisions you make today could set the tone for the rest of your life.
Whether you're trying to rebuild savings, finally get investing or just make sense of what the next year might bring for your money, experts agree: a little action now goes a long way.
So, here are six things you can start doing for a financially better 2026.
1. Get clear on your financial priorities
There's no point trying to manage your money if you haven't defined what you're managing it for.
One of the most impactful moves you can make in 2025 is to know what your intentions are.
'Write down your own financial priorities in life – whether it is being debt free, helping your children, or having enough money to retire – and allocate a specific amount of your disposable income to these priorities,' explains Iain McLeod, head of private clients at St. James's Place.
From there, McLeod says it's worth getting expert help if you're unsure: 'Seek financial advice to ensure that these savings are working harder for you – from a taxation and investment perspective.
'The worst move is to do nothing,' he says, 'the second worst move is to follow a flow chart – everyone's circumstances are as unique as their fingerprint.'
2. Should you be saving, investing or spending?
With inflation still above the Bank of England's target and interest rates holding at 4.25%, it's easy to feel stuck between stockpiling cash and making big purchases before prices rise again. But timing the market or second-guessing interest rate decisions isn't the point.
'The best approach is to focus on what you can control,' says McLeod.
'Once you have balanced how much you would like to spend and how much you can afford to save, you are in a stronger position to commit savings to longer-term investments. This provides the foundation of a longer-term plan, which can be resilient against shorter-term shocks in the markets.'
Or, as TrinityBridge' s financial planner James Ballinger puts it: '2025 is no different from any other time […] Generally, if you are younger in age or still haven't reached financial independence, you should be looking to maximise savings and investments – whilst still enjoying life!'
3. Starting to invest? Start with what you already have
If you're new to investing, don't get distracted by market noise or get-rich-quick stocks. Instead, think about what you already have in place.
'The best area to start is always with cash,' says McLeod. 'How much do you need readily available at the bank for emergencies such as house repairs, large expenditures such as holidays, or simply an amount that gives peace of mind?'
From there, longer-term goals should drive your strategy. 'Start with the end in mind – how much do you realistically need to save in order to meet your retirement goals?' he explains. And whatever your level, 'diversification should be a core principle […] it is generally the safest way to achieve longer-term investment goals'.
Ballinger agrees that the mechanics don't need to be complicated. 'ISAs and pensions are both tax-efficient ways to save for the future,' he says, 'more basic than that, having a separate bank account that you earmark for saving, can help to avoid overspend.'
4. Rebuilding your savings without feeling skint
If you dipped into your savings recently, you're not alone – but getting back on track doesn't have to mean cutting out everything you enjoy.
'A lot of planners will talk about 'paying yourself first',' says Ballinger, referring to the habit of setting up an automatic transfer into savings the moment you're paid. 'This creates discipline and forces you to adapt to your remaining budget through the rest of the month.'
Budgeting tools can help. Ebony Cropper, money-saving expert at Money Wellness, suggests using banking apps or online tools to track where your money is really going.
' People are often surprised to find they're spending hundreds a month on things they don't actually need, like forgotten subscriptions, daily coffees or impulse buys. Just cutting £5 a day could save over £1,800 a year.'
5. Don't ignore the changes coming in 2025 and beyond
From tax thresholds to pension rules, the financial landscape is constantly shifting – and not necessarily in your favour.
'The 2024 autumn Budget introduced a number of changes that could impact savers in the future,' says McLeod.
Capital Gains Tax has risen, and from April 2025, the Stamp Duty threshold in England and Northern Ireland dropped from £250,000 to £125,000. 'First-time buyers will also be impacted, with their stamp duty threshold dropping significantly from £425,000 to £300,000.'
Even more significantly, he adds that 'unused pension funds and death benefits will be included in the value of a person's estate for Inheritance Tax from 6 April 2027.' If that affects you, it's time to speak to a financial adviser.
Ballinger notes that there's likely another government Budget coming in autumn, as he says, 'we may see further changes to tax then'.
6. Make the most of what's already out there
But don't let what's to come send you into a state of panic. There are still government schemes and benefits going under the radar.
'Over £23bn in benefits goes unclaimed every year,' says Cropper. Even higher earners could qualify for support depending on childcare or housing costs. 'Someone earning £30,000 with two kids and high childcare costs could be entitled to hundreds of pounds in support.'
She also recommends cashback schemes and checking your tax code, noting that 'errors can cost you hundreds'.
And for those with modest means, she says the Help to Save scheme is a no-brainer: 'Save £50 a month and you'll get £600 in bonus payments over two years – and £1,200 if you keep it going for four. That's a 50% return, completely risk-free.'
Ultimately, the financial habits you build now – from budgeting smarter to using tax wrappers wisely – will pay off not just in 2026, but well beyond. As McLeod says: 'The best time to plant a tree was 20 years ago. The second best time is now.'