How To Make A Savings Plan In 2026

A leading personal finance expert and consumer champions has shared her top tips for making a savings plan in 2026.

 

Jane Hawkes, who runs the Lady Janey website, says there’s no better time of year to get on top of personal finances.

 

She said: “The festive season tends to stretch budgets while the New Year offers the perfect opportunity to reflect on our financial wellbeing and set goals. It’s the ideal period for making a 2026 savings plan.”

 

“Those with good wages may think they’re safe from financial stresses. But unexpected events can happen to anyone, and anyone can be guilty of spending beyond their means.”

 

“Making a savings plan gives you clarity and ensures you reach your financial goals more quickly and efficiently.”

 

 

Here Jane outlines the five steps to building the best savings plan.

 

1. Start with a solid foundation

 

It may seem easier to turn a blind eye to your spending- especially the impulsive or unnecessary purchases. Often seeing the eye-watering sums can be motivation in itself to change spending habits or find better deals.

 

Your first step should be getting all records of financial information together from at least the past three months. This includes bank statements, bills, credit card debt and pension contributions.

 

Having information from the past financial quarter is the best way to get an idea of your average monthly spend. For example, it’s likely December will leave big dent in you bank balance than other months.

 

This exercise will give you a clear insight into incomings and outgoings.

 

2. Be savvy with your savings

 

With your financial situation evaluated, shop around for better deals on phone, utilities and TV plans. Often if you call up, they’ll give you a better deal than advertised online.

 

You should also be tough and realistic about your spending. How much use do you get from the gym? Could you make coffee at home? Did you really want or need that impulse buy? Consider swapping for cheaper alternatives, or setting boundaries like delaying purchases.

 

When managing longer-term savings, do your research on the best accounts to keep them in. Compound interest can help you reach your pension or house deposit goals more quickly and efficiently.

 

3. Set a budget that works towards your goals

 

If your and your partner budget together, it’s crucial to involve them in this stage of the savings plan. It will only be successful if you both agree on spending limits and what you’re working towards.

 

Expenses broadly fit into three categories: essentials (e.g., groceries and household bills), discretionary (e.g., eating out and entertainment) and financial goals (e.g., savings and debt repayments).

 

Having a clear focus is a key motivator for saving. Just like many other areas of life, goals should be time-bound. Figure out whether they’re short or long-term.

 

You should always budget for emergencies.

 

4. Piggy banks

 

Putting your plan into action has never been easier thanks to modern banking tools. Monzo, Starling and Chase are just a few of the banks which have dedicated piggy banks or pots for specific savings goals.

 

I’d recommend setting up a direct debit from your main account into these mini accounts which may dedicated to your summer holiday, a new kitchen, Christmas or the all-important emergency fund. This is something you can do now to plan your savings for the year ahead.

 

Many banks also allow you to pay bills directly from these pots, so they can be great for compartmentalising necessary expenses.

 

You’re essentially paying yourself, and whatever is left over can be enjoyed throughout the month.

 

5. Stay up to date

 

Government policy and global events may seem a world away, but they can have a very real impact on your long-term savings plan.

 

For example, the Chancellor’s most recent budget has capped the tax-free allowances on salary sacrifices and nearly halved the tax-free amount you can put into cash ISAs.

 

What previously worked for your savings a year ago, might no longer be the best decision.