From switching providers to reviewing your insurance and creating a savings plan, these practical tips could help you to save money in 2025.
1. Switch providers to save
Our research shows broadband and TV customers save an average of £160 a year by switching, with those leaving Sky seeing the biggest savings. Mobile customers could also take advantage of switching, with average savings of £67.
Switching broadband providers is easier than before thanks to Ofcom’s One Touch Switch rules, which mean you only need to contact your new provider to make the change. Mobile phone users can also benefit from flexible one-month SIM-only deals that make it easier to move if prices rise or services fall short.
If you prefer not to switch, haggling can be a great way to lower your bills.
2. Protect yourself against inflation
By shopping around and choosing the right deal, you can make sure your savings grow in real terms and protect yourself against further inflationary pressures in the new year.
3. Make sure you’re getting the best energy deal
A household using an average amount of energy will pay around £21 more per year, but those using more energy will face bigger increases. The price cap limits the cost per unit of energy, so your total bill depends on your usage.
If you’re on a variable tariff, now might be a good time to compare fixed deals. Switching to a fixed-rate tariff could save you money if you can lock in a deal below the upcoming price cap rates.
If you're on a fixed-rate tariff already, it’s important to check for any exit fees before switching providers.
4. Tax-proof your investments
With rising taxes on investment gains, the start of the year is a great time to make your portfolio more tax-efficient.
The Bed and Isa process lets you sell investments from a general investment account and repurchase them within an Isa, protecting future gains from tax.
Moving investments into an Isa could boost returns by more than £13,000 over 10 years for a higher-rate taxpayer. To start, you’ll need an Isa and a general account with the same provider. Some platforms offer a streamlined process, but stamp duty on shares may apply.
Act before 5 April 2025 to use this year’s Isa allowance. It’s a simple step to reduce tax, protect your portfolio and set yourself up for better returns.
Find out more:5. Maintain your assets
With a few proactive steps, you can ensure you’re well-insured and not paying over the odds.
Regular servicing and addressing issues promptly will keep your car safe and your coverage intact. Additionally, reviewing and comparing policies annually can help you secure a better deal, as premiums vary significantly between providers.
Simple steps such as clearing debris and securing outdoor furniture can reduce risks and ensure smoother claims if damage occurs. Make sure your policy covers storm-related events and review your options to avoid overpaying for unnecessary extras.
Find out more:6. Check your mortgage agreement
If your mortgage deal is coming up for renewal, now is the time to act.
When remortgaging, it's worth checking what your current lender is offering, but you could make big savings by comparing deals from other providers.
By preparing early, you can secure a better rate, avoid rolling onto a costly SVR and potentially save thousands over the life of your loan.
7. Consider your retirement options
Recent changes announced in the Autumn Budget mean inherited pensions will be subject to inheritance tax (IHT) starting in 2027.
Defined contribution pensions will count toward your estate’s value. If your estate exceeds £325,000 (or £500,000 if passing your home to a direct descendant), amounts above the threshold will be taxed at 40%.
To plan ahead and reduce the impact of these changes, you can do the following:
Spend or gift funds early: Consider an annuity: Find out more:8. File your tax return earlier
Filing your tax return before the 31 January 2025 deadline gives you plenty of time to gather documents, avoid mistakes and plan your payment. If you’re due a refund, filing early means you’ll likely get it faster, as HMRC processes rebates more quickly outside the end-of-January rush.
Filing early lets you budget by knowing exactly what you owe and gives you time to save. If you have questions or need help, contacting HMRC is easier before the deadline, when queues are shorter.
Avoiding last-minute stress and penalties makes early filing a simple way to start the year on the right financial footing.
Find out more:9. Take control of your debt
If you’re managing debt, taking proactive steps can help reduce stress and free up money for other essential expenses.
One effective option is transferring existing balances to a 0% interest credit card, which can give you a break from high-interest charges and make it easier to pay down your debt faster.
These deals last for a set period, so be sure to clear the balance before the 0% term ends to avoid extra charges.
Find out more:10. Create a savings plan
Having a savings plan is important for navigating through any life stage, be it starting a family or preparing for retirement.
The first step is to assess your outgoings. It's important to take your time and consider how your money is spent, including utility bills, travel, mortgage payments and everyday spending.
11. Plan for the best, prepare for the worst
It might feel uncomfortable to think about life insurance or private medical insurance (PMI), but planning for the unexpected can protect your loved ones and provide peace of mind.
Life insurance provides financial support for your family if something happens to you, covering expenses such as mortgage payments, childcare and general living costs. This ensures your loved ones aren’t left struggling if the worst happens.
PMI offers quicker access to medical care, avoiding potentially long NHS waiting times. While it isn’t essential for everyone, it can be valuable if you want access to specific treatments or more control over when and where you receive care. As with life insurance, premiums and coverage can vary widely, so shopping around is crucial.
Find out more: undefinedWhich? Limited is registered in England and Wales to 2 Marylebone Road, London NW1 4DF, company number 00677665 and is an Introducer Appointed Representative (FRN 610689) of the following:
1. Inspop.com Ltd for the introduction of non-investment motor, home, travel and pet insurance, who are authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635). Inspop.com Ltd is authorised and regulated by the Financial Conduct Authority (FCA) to provide advice and arrange non-investment motor, home, travel and pet insurance products (FRN310635) and is registered in England and Wales to Greyfriars House, Greyfriars Road, Cardiff, South Wales, CF10 3AL, company number 03857130. Confused.com is a trading name of Inspop.com Ltd.
2. LifeSearch Partners Limited (FRN656479), for the introduction of Pure Protection Contracts and Private Health Insurance, who are authorised and regulated by the FCA to provide advice and arrange Pure Protection Contracts and Private Health Insurance Contracts. LifeSearch Partners Ltd is registered in England and Wales to 3000a Parkway, Whiteley, Hampshire, PO15 7FX, company number 03412386.
3. HUB Financial Solutions, for the introduction of equity release advice and an annuity comparison service, who are authorised and regulated by the Financial Conduct Authority (‘FCA’) to provide advice and guidance on financial products for those who have retired or are approaching retirement (FCA Firm Reference Number: 455713). HUB Financial Solutions is registered in England and Wales to Enterprise House, Bancroft Road, Reigate, Surrey RH12 7RP, company number 05125701.
4. Alan Boswell Insurance Brokers Ltd (FRN 301), for the introduction of non-investment landlord insurances, who are authorised and regulated by the Financial Conduct Authority to provide advice and arrange insurance contracts. Alan Boswell insurance brokers Ltd is registered in England at Prospect House, Rouen Rd, Norwich NR1 1RE, company number 02591252.
Other financial services:
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ. London & Country are authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
We do not make, nor do we seek to make, any recommendations or personalised advice on financial products or services that are regulated by the FCA, as we’re not regulated or authorised by the FCA to advise you in this way. In some cases, however, we have included links to regulated brands or providers with whom we have a commercial relationship and, if you choose to, you can buy a product from our commercial partners.
If you go ahead and buy a product using our link, we will receive a commission to help fund our not-for-profit mission and our campaigns work as a champion for the UK consumer. Please note that a link alone does not constitute an endorsement by Which?.
source https://www.which.co.uk/news/article/11-smart-financial-moves-to-kickstart-2025-aBoBZ5L9WOI0