Millions of Britons are preparing to take a far more disciplined approach to their finances in the new year, with plans to drastically reduce spending on non-essentials. A major annual survey indicates that takeaways, unused subscriptions, and social nights out are firmly in the crosshairs as people aim to regain control of their money.
Where the Cuts Are Coming From
The research, conducted by the saving and investing platform Moneybox, polled 2,000 adults about their financial intentions for 2026. It found that a significant portion of the population is ready to be more ruthless with their discretionary spending. The areas facing the biggest reductions include luxury purchases and fashionable items, both targeted by 29% of those making cuts.
Furthermore, 18 per cent of Brits plan to cut back on everyday conveniences like takeaway coffees, while many are looking to bin unused digital subscriptions and clamp down on the frequency of nights out. This trend is already in motion, with the data showing average monthly spending on takeaways has already dipped by nine per cent, falling from £77.58 to £70.72.
The Driving Forces Behind the Financial Squeeze
This widespread belt-tightening is being driven by the sustained pressure of rising living costs. The survey highlights stark increases in essential outgoings between 2024 and 2025. Monthly grocery bills have jumped by 14 per cent, rising from an average of £313.09 to £355.66.
Even more dramatically, the typical monthly spend on rent and mortgages has soared by 24 per cent, from £531.97 to £657.58. These escalating costs are forcing households to scrutinise their outgoings like never before, making tough choices to free up cash.
From Cutting Back to Building Up: New Financial Goals
However, this isn't merely a story of austerity. The intention behind these spending cuts is largely positive and forward-looking. 30 per cent of those making cuts want to prioritise investing, while 19 per cent hope to smash their financial goals rapidly.
The freed-up funds are being redirected towards key long-term objectives. Top priorities for 2026 include:
- Building or bolstering an emergency fund (28%)
- Putting more money aside for retirement (20%)
- Saving for home improvements (18%)
Encouragingly, the end of 2025 finds 37 per cent feeling they are in a better financial position than at the start of the year, compared to just 19 per cent who feel worse off. This improvement is attributed to making progress on financial goals (31%), better budgeting (28%), and seeing solid investment returns (25%).
Brian Byrnes, Director of Personal Finance at Moneybox, emphasised the power of small, consistent actions. "Regularly reviewing your spending is one of the simplest and most powerful ways to build better financial habits," he said. "Small changes made consistently can unlock money you didn’t even realise you were spending."
Looking ahead, there is a wave of optimism. 57 per cent of those polled are optimistic about getting their finances on track in the new year. This confidence is underpinned by concrete plans, with 47% having a strategy to save more and 28% feeling more capable of managing their money.
A growing confidence in investing is also evident. 32 per cent proactively invested in 2025, and 65% of them felt more confident doing so than in 2024. This surge in assurance is linked to feeling better informed (44%) and having previously received good returns (35%).
A Moneybox spokesman concluded: "What this research shows is that people aren’t just tightening their belts, they’re becoming far more intentional about their money... When people feel informed and supported, financial confidence becomes the unlock that turns good intentions into better financial outcomes."
