As the year draws to a close, four in ten Brits say they are in a better financial position than when the year began—even though monthly grocery bills have increased by 14% and spending on rent and mortgages has risen by 24%. This improvement is largely due to better budgeting and solid returns on investments. In addition, one in three people have received a pay rise, and one in five have managed to pay down debts.

Going into the new years Brits are set to be more ruthless with their discretionary spending ditching takeaways, binning unused subscriptions, and clamping down on nights out. An annual survey of 2,000 adults found that one in three of those making cuts want to prioritise investing, and a fifth hope to smash their financial goals as quickly as possible. Others plan to cut back on luxury and fashionable items, as well as everyday purchases like takeaway coffees.

The yearly poll by saving and investing platform Moneybox – which tracks spending and how people are feeling about their finances for the year ahead – suggests rising living costs could be a major driver for cutting back on costs. 

Many hope these cutbacks will stretch their money even further, aiming to free up extra cash to achieve their main financial goals for the year such as building their emergency fund, putting money aside for retirement and home improvement projects.

Brian Byrnes, director of personal finance at Moneybox, said: “Regularly reviewing your spending is one of the simplest and most powerful ways to build better financial habits.

“Small changes made consistently can unlock money you didn’t even realise you were spending. Even modest mindset shifts like committing to spending 30 minutes a week on your personal finances can make a meaningful difference to your financial situation over time.”

The research also found 57% of those polled are optimistic they will continue to get their finances back on track in the new year. Of those who are optimistic, 47% have a plan in place to save more, and confidence is building among 28% who now feel more capable of managing their money.

A further 26% who are positive about getting their finances back on track have set clear financial targets they’re working towards in 2026, and 24% feel more motivated to get on top of their money, while 15% are committed to investing more regularly.

Overall, 32% proactively invested their money in 2025, and 65% of them felt more confident doing so compared to 2024. 

This confidence has grown for 44% because they feel more informed about investing, while 35% had the confidence to return to the market after previously receiving good returns, according to the OnePoll findings.

A spokesman for Moneybox added: “What this research shows is that people aren’t just tightening their belts, they’re becoming far more intentional about their money.

“Rising costs have forced tough choices, but confidence is growing as people get clearer on their goals and take action, whether that’s investing regularly, building an emergency fund or planning for the long term.

“When people feel informed and supported, financial confidence becomes the unlock that turns good intentions into better financial outcomes.”