When the new year rolls around, many consider it the best time to make big changes to their lives. Renewed energy for the year ahead is great at spurring us on to make positive changes and strive to reach a place where we meet our goals and get a sense of happiness and achievement.

One of the most common goals for the new year is to get on top of finances. And a big part of this is managing debt. Debt is a major hurdle when it comes to your financial health and stability, and it can feel like an uphill battle with ever-changing goalposts.

But, it doesn’t have to be. Yes, it’s an enormous challenge, but it is possible to get on top of your debts so you can start to chase your next financial goal.

And one of the best ways to make a positive impact on your finances is by finding new ways to save money on everyday things. Even small savings can quickly add up so you can focus on paying off your debts and getting your finances into a place you’re happy.

In this article, I’ll give you tips on how to save money this year. I spoke to some of the leading financial experts in the UK for their best advice, and reveal some tricks from my bank of nearly fourteen years of personal finance knowledge. If you’re looking for how to become debt free, the little changes can have a huge impact and contribute towards you having a debt free future. Let’s take a look at ways you can make that happen.

7 tips to help you save money this year

Excited at the thought of saving money this year so you can focus on paying off your debts? Making changes to your finances isn’t easy, but by following these steps, it can be a little bit easier.

1. Create a realistic budget

Before you can make any changes, you need to make sure you have a complete understanding of your personal financial situation. This means creating a record of all your income and outgoings every month, as well as your savings.

So, open up a spreadsheet, go through your bank statements and list everything so you have a complete picture of your monthly family finances. We've got a handy free household budget calculator tool to help you do so.

Once you have a clear understanding of what comes in and goes out each month, you’ll be in a great position to set yourself a realistic budget so you know what you can dedicate to everything from food to entertainment. That’ll help you stay accountable and help prevent you from overspending. Spreadsheets aren’t exactly fun, but they’re great at help you keep track of things.

Christie Cook, head of retail at Hodge Bank, knows the importance of budgeting, saying, ‘Utilising budgeting apps or spreadsheets can help you monitor your spending patterns and identify areas for improvement. By analysing your expenses, you can make informed decisions to cut unnecessary costs and optimise your budgets.’

2. Find ways to reduce your monthly expenses

This one might seem obvious, but it can be incredibly effective. Take a look at your budget and see what changes you can make to reduce your monthly expenses. Even if you make some cuts for a limited time, it can make a big impact on what you owe.

For example, if you get rid of all but one of your streaming providers for a month, depending on how many you have you could save £50+. Instead of your weekly takeaway one month, why not get some pizzas to chuck in the oven and save £100? It’s not exactly fun or glamorous, but with those changes you could have around £150 extra to pay towards your debts, which is huge.

3. Always shop with a list

When the time comes to head out shopping, make sure you always use a shopping list. Brits make an average of 40 impulse purchases every year, which can add up to a huge amount as it equals more than £50 per month. So, by just sticking to your shopping list, you can save over £600 a year. That’s a huge amount you can then use to pay off some of your debts with.

Not shopping while hungry is an essential component of shopping with a list, and you can find more ways to reduce the cost of the weekly food shop in this guide by Savoo food and drink expert, Yasmeen.

4. Automate your savings

Set up a standing order to pay an amount into your savings account each month. After pay day, it can be all too tempting to treat yourself (and you absolutely should!) but before you do that, putting some money aside first can prevent the urge to spend it.

What you then do with your savings is up to you. But, if your overall goal is to clear your debts, that’s another chunk you can use. Even saving £15 a month is £180 by the end of the year. Use our free emergency savings calculator to get a customised emergency savings plan, based on your personal financial situation.

Zoe Brett at EQ Investors has useful tips for saving money while paying off your debts: ‘Start with a small sum at the beginning of the month. Then when you don’t notice that money not being there, increase it slightly until you get into the habit of saving a decent amount each month.

‘When considering the use of your financial emergency fund, consider what part of that expenditure is necessity and what is desire-driven. Your emergency fund will be no good to you in a crisis if you dip into it for luxuries.’

5. Use voucher codes and cashback schemes to save money on common expenses

There are loads of things you have to spend money on throughout the month. Unfortunately, it’s inevitable. Food, clothes, travel, electronics, health and beauty, home and garden… I could go on.

While these purchases are a necessity, there are ways you can buy what you usually buy but save a little money at the same time.

One super effective way to save money is by using voucher codes. Voucher codes save you money on your online purchases, which you’re likely to make anyway. Here at Savoo, we have a huge amount of up-to-date voucher codes, which you can use at loads of your favourite retailers, like Boots, Superdrug, Pets at Home and way more.

Another great way to save money is by using cashback and rewards apps, like TopCashback, which can save you hundreds every year in small rebates after you make a purchase.

6. Think about ways to increase your income

You likely have a set amount of income that hits your account each month, which helps you budget so you know exactly what you can expect. But, a great way to save more money is by topping up your income with a cheeky side hustle. And who's going to say no to extra cash?

And the great thing is, if you earn less than £1,000 in a year on your side hustle, you don’t need to tell HMRC about it, which means it’s all yours – or, in this case, it’s a massive chunk you might want to use to pay off your debts.

Get creative with ways to make extra money. Become a freelance copywriter. Sell crocheted animals online. Take surveys. Help out at your cousin’s business from time to time. And if you spread out your side hustle throughout the year, not only will you appease the tax man, but you’ll still make sure you have time to rest and recharge so you don’t need to worry about burnout.

7. Improve your financial literacy

One of the best ways to keep on top of your finances and make sure you understand the implications of savings and debt, you’ll think about it in a whole new way.

Learn more about budgeting, debt and personal wealth with advice from the experts, so you feel confident managing your finances. You don’t need to be wealthy to take care of your money, because if you take care of your money you’ll be in a great position to let it take care of you. That’s a really cheesy line, but it’s true.

There are loads of great resources out there to help you learn more about taking care of your finances.

MONEY USERS GUIDE PB is a Times bestseller and is – thankfully – also quite cheap. For something lighthearted, Manage Your Money Like a F*cking Grown-Up is funny and filled with great advice.

If you’re a podcast fan, The Martin Lewis Podcast is always packed with brilliant information, as you might expect. Radio 4 also has a podcast worth listening to, with Money Box offering advice on a wide range of money-saving related topics.

Use Savoo to help lower your spending on your quest to become debt free this year

Saving money and reducing your debts is a wonderful feeling, and taking control of your finances can be a huge weight off your shoulders. Here at Savoo, we provide up-to-date voucher codes you can use on loads of popular sites to help lower costs and get more for your money, so you can focus on getting back in the black.

Save money on your weekly food shopping with vouchers for Iceland, Asda, and Ocado, pay less for your utilities with codes you can use at Uswitch, and save money on school uniforms with vouchers you can use at George.