Hundreds of adults more positive about saving cash in 2025 in major ‘turning point’
HALF of Brits (53%) are optimistic that 2025 is the year they will finally be able to get their finances back on track.
After years of economic uncertainty, a study of 2,000 adults found 31% now think they are in a better place to start saving more regularly.
One in five are confident they will be able to invest more this year, and 23% have already set clear financial goals for the year ahead.
It emerged 18% anticipate having their debts cleared in the next 12 months to help them regain a greater sense of control of their finances, with 15% hopeful their finances will also improve if the economy gets stronger.
The research, which is conducted annually by saving and investing app Moneybox, also revealed 22% are apprehensive about their financial prospects this year, with 42% of these still struggling to manage the increased cost of living.
In the last year, respondents reported a 9% increase in mortgage or rent payments, now averaging £532 a month.
Food and grocery outgoings also rose by 17% to £313 on average each month, and the monthly cost of gas and electricity continued to rise, now £203, up 18% on reported costs a year ago.
Yet, Brits also reported they, on average, managed to commit 17% of their monthly income to their savings each month in 2024, up 3% from the previous year.
Interestingly, many took a number of financial actions for the first time in 2024 which likely contributed to their hopeful outlook, including managing to save an emergency fund (17%) and creating a plan to achieve longer-term financial goals (15%).
Many started investing for the first time last year (14%) and 13% opened their first Cash ISA.
Brian Byrnes, head of personal finance at Moneybox, said: “2025 appears to be a turning point for many, with a significant portion feeling more optimistic about regaining control of their finances.
“There’s a clear shift towards saving, investing, and reducing debt, showing that people are setting clear financial goals for the year ahead and beyond.
“While the rate of inflation has slowed and wages have theoretically risen faster than inflation recently, the cost of living remains significantly higher than it was just three years ago.
“This reality underscores the importance of taking proactive steps to achieve financial goals.”
Looking to the year ahead, while 38% do not believe their income will grow this year, many have already explored ways they can free up some cash to prioritise their saving and investment goals.
Nearly four in 10 (37%) plan to cut back on takeaways in 2025, while 31% will reduce their budget for nights out.
A further 18% plan to cancel streaming services.
When it comes to financial goals for the New Year, building up a rainy-day fund (25%), and investing more (18%) were the most common ambitions among respondents.
Others, 14%, have set an intention to save enough to max out their ISA allowance this year, with paying off debt and saving to be able to travel more popular.
Looking back at last year’s financial aspirations, 37% managed to achieve all of the financial goals they set for themselves, which is an improvement compared to 2023 (34%).
While a quarter (24%) didn’t quite manage to tick all the targets they set for themselves, they report feeling happy with the progress they made throughout the year.
Brian Byrnes, from Moneybox, added: “Taking control of your finances is about building momentum through progress, no matter how small.
“Small, consistent actions such as automating savings, making sure you are getting a good interest rate on all your savings, and regularly reviewing your budget for opportunities to reduce unnecessary expenses are cornerstones of good financial management.
“For those new to investing, platforms offering diversified portfolios tailored to your goals and risk level can provide a great starting point to help boost your confidence over time.
“These actions not only foster financial resilience but also create a foundation for building wealth and creating the life you want in the future.”
How you can find the best savings rates
If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what’s out there.
These websites let you tailor your searches to an account type that suits you.
There are three types of savings accounts fixed, easy access, and regular saver.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals.
These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
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