We might try to start the year with good intentions but sometimes saving money is easier said than done.
According to the latest government figures, UK households spent an average of £676.60 per week last year.
Here are some simple ways to cut costs and help your money go further in 2027.
Household budgeting and understanding your spending
Knowing where your money goes is the first step to managing it. Once you understand your spending, it's easier to spot places where you could save.
Review your monthly household costs
Take some time to go through your regular bills and everyday spending. This could include:
- energy
- water
- broadband
- insurance
- food shopping
- travel costs
Check your bank statements from the last few months and see if anything costs more than expected.
Small savings across several areas can soon add up and make a big difference.
Use budgeting tools and bill calculators
Using a budget planner is one of the best ways to keep track of your money.
There are lots of free budgeting templates and online calculators available. Try a few and choose one that works best for you.
Or if you’re more tech savvy, you could make your own.
Set realistic spending limits
Don't be too harsh with your budget. We all need to treat ourselves every now and again, so set realistic goals that you can stick to.
Try to reduce non-essential spending without cutting it out completely. For example, you could limit takeaways or meals out to once a month instead of having them weekly.
Save for a rainy day
Life doesn't always go to plan, so it can be helpful to set aside a little each month for unexpected costs, like home repairs or replacing a broken appliance.
Having an emergency fund can help take some of the stress out of surprise costs.
Shop around for better energy deals
Last year, energy bills reached an estimated £1,899 per year according the government’s latest figures.
Prices can change throughout the year, so it's worth checking whether you're still on the best tariff for your needs.
It's also a good idea to:
- submit meter readings regularly
- check your bills are accurate
- make sure you're only paying for the energy you've used
If you can’t switch your energy provider, there are a few small changes you can make to help you save, for example:
- using LED bulbs
- washing clothes at a lower temperature
- avoid using standby power mode on things like your TV or laptop
Explore more energy-saving tips for your home in our guide.
Review your subscriptions and recurring payments
Subscriptions can sneakily build up over time, and it can be easy to forget things you don’t use anymore.
Go through your bank statements and make a list of recurring payments, like:
- gym memberships
- streaming services
- phone apps
See if there’s anything you can cancel, or even just pause for a few months.
A good idea is to ask yourself when you last used a service. If you haven’t used something you pay for in the last 30 days – you might be able to live without it.
Look for savings on transport costs
Whether you drive or use public transport, there might be ways you can save on your journeys.
Saving on public transport
If you catch the train or bus regularly, it might be worth looking into a season ticket. You’ll pay for your journeys upfront, but it’ll often save you money in the long run.
Check if you’re also eligible for a rail card or bus pass, you can usually find this information on your local council’s website.
Compare EV charging tariffs and fuel prices
If you drive an electric vehicle (EV), compare charging tariffs to see if you're getting the best value. Some energy providers offer lower overnight rates, which can help reduce charging costs.
If you drive a petrol or diesel vehicle, fuel prices can vary between filling stations. Using a fuel price comparison app before you fill up could help you find a cheaper option nearby.
Find out more about how to save on fuel in our guide.
Cycling and walking
For shorter journeys, consider walking or cycling instead of driving. This could help you save money on:
- fuel
- parking
- vehicle wear and tear
Keep working from home costs under control
Working from home can consume a lot of energy, especially in the winter when you need to heat your home during the day.
You can try to cut down on costs by:
- working in one room so you don’t have to heat the whole house
- switching off equipment when you're not using it
- using energy-saving settings on your devices
- checking if your employer offers support with home-working costs
Check your home cover is suitable
If you’ve got home insurance, it's worth checking what is and isn't covered.
Take a look for any gaps in your cover, like:
- Accidental Damage cover – this can help protect you against everyday mishaps like spills, stains, DIY slip-ups and accidents caused by children.
- Home Emergency cover – this can help you with urgent problems in your home that need sorting straight away, like broken boilers or leaking pipes.
It's also a good idea to make sure your policy still reflects what you need. For example, you might have items listed on your policy that you no longer own, or your total amount insured could be higher than it needs to be.
Reviewing your cover when you renew can help make sure you're getting the protection that's right for you.
Policy limits and exclusions always apply, so make sure you check your policy documents.
Final tip
The most effective budgets are simple, realistic and easy to follow.
You don't need to make big changes all at once. Small savings made regularly can add up and help you stay in control of your spending throughout the year.
