A financial expert has revealed how embracing “No-Spend January” could help Brits save hundreds and transform their money habits for 2025, as research shows the average UK household racked up £740 in Christmas debt.
Personal finance expert, Lexi Burgess, from credit score app CredAbility, weighs in on the benefits of taking on a no-spend challenge and shares practical tips to help households save.
“Many people are feeling the pinch after Christmas, with our research showing that nearly 60% of Brits overspent their holiday budget this season. No-spend January presents the perfect opportunity for a financial detox that can help you rebuild healthy financial habits.”
How much could you save?
“Our research indicates that the typical UK household could save £850 through a month-long spending detox, primarily by cutting back on takeaways, impulse purchases, and entertainment expenses.
We often underestimate how much we spend on little luxuries, but they add up. The average Brit spends £13 per day on non-essential items – nearly £400 per month. A no-spend January helps you identify these spending leaks and redirect that money towards savings or debt repayment.
The financial benefits extend beyond January, with research showing that 65% of people who complete a month-long spending challenge maintain better financial habits for at least six months afterwards.”
Seven Tips for a Successful No-Spend January
Set Clear Goals: “Start by defining your ‘why’. Whether it’s saving for a summer holiday, clearing post-Christmas debts, or breaking bad spending habits, having a clear purpose will keep you motivated.”
Identify Non-Negotiables: “While the challenge focuses on avoiding non-essential spending, some costs are unavoidable. Cover your essentials like rent, bills, and groceries, but challenge yourself to be creative with what’s left. Look at areas like subscriptions; the average UK household spends £46 a month on streaming services they barely use.”
Track Every Penny: “Use an app or notebook to jot down all your expenses. You’ll quickly see how small savings add up, and it’ll help you pinpoint areas to cut back for the long term.”
Unsubscribe and Declutter: “Unsubscribing from retailer emails and removing shopping apps from your phone will reduce temptation and makes impulse spending less accessible.”
Find a Money Buddy: “If you’re worried about sticking to the challenge, call in a friend or family member to share the journey with and provide mutual support and accountability.”
Team Up with a Money Buddy: “If you’re worried about staying on track, get a friend or family member involved. “Having someone to share the challenge with makes it more fun, and you can hold each other accountable when the going gets tough.”
Keep the End Goal in Mind: “If you save just £5 a day, by the end of January, you’ll have £155 to put toward debt or an emergency fund. Seeing those savings grow is hugely motivating and helps you stay focused.”
Is No-Spend January for Everyone?
Lexi acknowledges that the challenge may not suit everyone, particularly those already living on tight budgets. “If cutting back further isn’t feasible, focus on tracking your spending instead,” she suggests. “Simply understanding where your money goes can be a powerful step toward better financial health.”
