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New Year Financial Detox: "The New Year presents an excellent opportunity to refocus your financial priorities"

Journalist: Scott Gallacher, Newspage Newsdesk

ended 31. December 2024

The start of a new year is the perfect time for people to take stock of their finances and tackle the ‘financial clutter’ that may be holding them back. From forgotten subscriptions to paying too much for insurance or utilities, these unnecessary expenses can add up significantly over time. A New Year’s financial detox can help people identify and eliminate these hidden drains on their resources, freeing up funds for their goals and investments. Newspage asked IFAs and other financial experts for their tips, below.

7 responses from the Newspage community

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Anita Wright
Chartered Financial Planner at Ribble Wealth Management
The New Year presents an excellent opportunity to refocus your financial priorities. Helping people distinguish between wants and needs is a critical part of this process. Many people unknowingly allow wants—those non-essential expenses—to consume resources better aligned with their needs and long-term goals. Forgotten subscriptions and underutilised memberships are common culprits. Encouraging clients to review recurring expenses helps identify unnecessary outgoings. Comparing providers for utilities and insurance ensures people are not overpaying. Switching services can be an easy win for savings without sacrificing quality. Categorising expenditures as "wants" or "needs" often reveals areas to cut back. Tools like budgeting apps can assist in providing a consolidated view of all direct debits and subscriptions. Interest payments on high-cost debts can be a significant financial drain. Consolidating or refinancing debts, where appropriate, can free up funds for better uses.
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Scott Gallacher
Director at Rowley Turton
Start by reviewing your last three months’ bank statements. Look out for recurring payments you may have forgotten about, such as subscriptions, memberships or services that no longer add value. When I recently did this for myself, I found I was paying for online newspapers, streaming platforms and software I wasn’t using. By cancelling these, I saved over £100 per month—a small effort with a big payoff. Another key step is to shop around for better deals on utilities and insurance annually. With energy prices still high, even modest changes in providers or plans can lead to significant savings. Many people are surprised at how much they can save just by renegotiating contracts or switching to more competitive rates.
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Tony Redondo
Founder at Cosmos Currency Exchange
Some key strategies to eliminate financial waste when it comes to currency exchange are to use specialised currency exchange services that offer better rates and lower fees than traditional banks. Also, ensure whatever currency exchange company you use provides a personalised proactive service that can alert you to opportunities within your timeframe to get you the best rates. Also, try to combine smaller payments into larger transactions to enhance your purchasing power. Another way to save money is to use forward contracts to lock in favourable currency exchange rates and protect against fluctuations. Lastly, always monitor for hidden fees in currency conversions and seek providers with transparent pricing. By implementing these strategies, people can cut waste in currency exchange, freeing up funds for their financial goals.
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Gabriel McKeown
Political & Economics Writer at Sad Rabbit - Substack Newsletter
While revellers plan or recover from their NYE celebrations, prudent investors take time to complete an annual portfolio review to help set the stage for a more prosperous 2025. A comprehensive review will encompass several critical components and should scrutinise the performance of their current holdings, how each investment has fared against benchmarks, and assess whether the portfolio still aligns with their tolerance. Furthermore, a portfolio must remain balanced as 2024’s heightened volatility will have altered underlying asset allocations. Looking forward, the increased geopolitical uncertainty of the past year has underscored the importance of diversification, and with developed markets showing signs of saturation, emerging markets may offer attractive growth prospects. Additionally, after such a strong performance this year, the technology sector may struggle to continue with the same momentum, so an allocation to more cyclical sectors could be beneficial in the new year.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Cutting back on daily expenses like cappuccinos and lattes can positively impact your finances, but it's important to remember that life is meant to be enjoyed. Instead of solely focusing on cutting costs, consider asking yourself: What are my financial goals, and am I on the path to achieving them? If you find yourself lacking the time or expertise to manage your finances effectively, don't hesitate to seek professional advice. It should pay for itself in the long run.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
The New Year is a time for fresh starts, lofty resolutions and, let’s be honest, realising you’ve been funding a gym membership you last used in 2018. Financial detoxing is much the same: it's about uncovering those sneaky drains on your wallet that quietly chip away at your goals. This year, I’ve been helping clients declutter their finances with what I like to call “the three Rs”: review, renegotiate, and remove. From forgotten subscriptions to overpriced insurance policies, we tackle it all, armed with budgeting tools and a bit of British frankness. The question I always ask is, “Are you paying for what you need or just what you’ve forgotten?” The result? Clients find themselves with unexpected savings that feel like discovering a tenner in last winter’s coat. And that’s the beauty of it—a leaner, more efficient financial lifestyle means less stress and more freedom.
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Colin Low
Managing Director at Kingsfleet
In over 35 years of working with people and their money, it's evident to me that those who build wealth over time have one simple thing in common: they spend less than their income. It's a very simple rule, but it works every time. The key to doing this is to budget effectively and a key issue that makes budgeting difficult in modern times is the proliferation of subscriptions that we take out and forget. The prime culprits are TV streaming services and telecom contracts. I would recommend that everyone should have a single bank account which is only used for Direct Debits and sufficient funds added to it monthly so that the remaining amount can be used for other expenses such as eating out. A regular review of the Direct Debit account is, therefore, essential. Who are payments to? Are they essential? Are they still affordable? Can I do anything to make them lower such as shop around or cancel?