The new year is a good time to look at your money with fresh eyes. To help, we’ve put together 41 ways to grow and protect your money in 2026, updated with this year’s allowances and rules.
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1. Spend less than you earn
If you spend everything you earn, there’s nothing left to save, pay down debt or invest. This is the golden rule, so live by it.
2. Start saving as soon as you can
The sooner you start, the more time your money has to grow. If a 20-year-old invested £400 a month until age 60 and earned 7% a year, they would have about £1.05 million. They would have paid in £192,000. The rest is growth. This example ignores fees, tax and inflation, and returns are never guaranteed.
3. Track your spending
Keep track of everything you spend so you know where your money goes. Use pen and paper, a spreadsheet, your bank’s spending tools or a budgeting app.
4. Create a budget
Once you know how much you spend, create a budget you can stick to. Build saving into it from the start.
5. Save an emergency fund
Something will go wrong one day. Save 3 to 6 months of living expenses as an emergency fund in an easy-access savings account.
6. Make a financial calendar
Mark all your bill dates on a calendar, including quarterly and annual bills. Add your financial goals too, so you stay accountable.
7. Calculate your savings rate
Keep working to improve your savings rate. The higher it is, the faster you’ll reach financial independence.
Savings rate = monthly savings ÷ monthly take-home pay
Example: if you take home £2,500 and save £500, your savings rate is 20%.
8. Make saving a game
Saving games make it more fun. Try a no-spend month (essentials only), a £5 a day challenge or leaving the car at home at weekends. Apps like Plum can save for you automatically.
9. Create a want list
Don’t buy on impulse. Write the item on a want list and wait 30 days. If you still want it, look for the best deal.
10. Clear all bad debt
Bad debt, such as credit cards and car loans, makes you poorer every month. Clear it with the debt snowball method (smallest balance first) or the debt avalanche method (highest interest rate first). The avalanche method costs less in interest.
11. Try living more frugally
Try living more frugally for a while: walk or cycle to work, cut your own hair, cook all your meals at home.
If you don’t like it, you can always go back to your old habits. You’ll still have saved some money.
12. Cut non-essential spending
Get some quick wins by cutting spending you don’t need. Cancel subscriptions you hardly use, take lunch to work and eat out less.
13. Tackle “the big three”
Once you’ve trimmed your budget, tackle the big three: housing, travel and food. These are most people’s largest costs.
People who save 50% or more of their take-home pay usually do it by cutting these three. Suggestions follow.
14. Reduce housing costs
Get a flatmate, move somewhere smaller or closer to work, or let a spare room, for example through Airbnb.
The Rent a Room Scheme lets you earn up to £7,500 a year tax-free from letting furnished accommodation in your home. The limit is halved to £3,750 if you share the income with someone else.
15. Cut travel costs
Buy a more fuel-efficient car, share lifts, take the bus, or sell the car and buy a bike.
16. Cut your grocery bills
Cook at home, take lunch to work and cut back on alcohol. Switching to a discount supermarket such as Aldi can save you hundreds of pounds a year.
17. Plan your meals
Plan what you’ll eat for the week and shop with a list. It stops you buying food you don’t need and cuts waste.
18. Check your energy deal every year
Most households are on a variable tariff set by the Ofgem price cap, which changes every quarter. Compare fixed deals against the cap before your tariff ends. You can also get a quote from EDF.
19. Negotiate your bills
Haggle with your broadband, TV or mobile provider, or switch. Many providers offer better deals to customers who are about to leave.
20. Know your credit score
Check your credit score regularly and do what you can to improve it. Sign up for a free credit report with Experian.
21. Use credit cards wisely
Credit cards can build your credit score and earn cashback, vouchers or air miles. Set up a direct debit to pay the full balance every month, or the interest will wipe out any rewards.
22. Try to increase your salary
Can you earn more doing what you do now? Ask for a promotion, work more hours or move to another company. I once got a £10,000 pay rise just by asking.
23. Start a side hustle
What skills do you have, or could quickly learn, to earn money alongside your job?
A side hustle helps you save more. It could even let you leave a job you dislike for work you enjoy.
Earn extra cash by freelancing with no experience on Fiverr. Side hustle income over £1,000 a year (the trading allowance) has to be reported to HMRC.
24. Picture your ideal lifestyle
What does financial success look like to you? How much money would you need to live the life you want?
Add up the one-off purchases and the yearly income your ideal life would cost. Then start working towards that number.
25. Set goals and celebrate the wins
Reaching financial independence takes years. Stay motivated by setting smaller goals and rewarding yourself when you hit them.
26. Use affirmations
This one is a bit woo-woo, but it works for some people. Come up with a money mantra to keep you focused on building wealth. Feel free to use mine:
“I am a money magnet. Money flows into my life in abundance, and I multiply it with ease.”
27. Get an accountability partner
An accountability partner helps with any goal, so why not money?
My girlfriend is my main money buddy. I also talk about my goals and progress with my business partner.
28. Learn to invest
Learn about the different types of assets and their risks and rewards. Read the Invest Money section of this site.
To get started, you can claim a free share from Freetrade when you open an account and deposit £50. When investing, your capital is at risk.
29. Find out your risk profile
Higher returns usually come with higher risk. Complete a free online risk questionnaire to see how much risk you’re comfortable with.
30. Decide on your asset allocation
Asset allocation is how you split your money between shares, bonds, cash and other assets. A mix that matches your risk tolerance helps you keep your nerve during market crashes. For example, a cautious investor might hold 40% in shares and 60% in bonds and cash.
31. Write an investment plan
A written plan with your goals, strategy and rules stops you making emotional decisions, which tend to be poor ones.
32. Pay into your pension
If you’re employed, you’re probably auto-enrolled in a workplace pension. The minimum total contribution is 8% of qualifying earnings, with at least 3% from your employer. Paying in more, especially if your employer matches it, is one of the best ways to grow your money.
If you’re self-employed, set up a personal pension. You get tax relief on contributions: every £80 you pay in becomes £100. Higher-rate taxpayers can claim more back. Read pensions explained for beginners.
33. Use your ISA allowance
Use your ISA before you invest elsewhere. You don’t pay tax on income or gains inside an ISA.
You can pay up to £20,000 a year into ISAs. From April 2027, up to £12,000 of that can go into a Cash ISA if you’re under 65. Open a Stocks and Shares ISA with Interactive Investor.
34. Get on the property ladder
Work out whether buying or renting is cheaper where you live. If renting is cheaper, you can still own property through listed property funds or REITs (real estate investment trusts).
35. Build more than one source of income
Relying on a single job for all your income is risky. Add other sources by investing and building side hustles.
36. Track your net worth and passive income
What you pay attention to grows. If you want to build wealth, track your net worth. If you want more freedom, track your passive income.
37. Insure against disaster
Insure against any loss you couldn’t afford to pay for yourself. At a minimum, insure your home, its contents and your car.
Compare insurance quotes at Mustard.co.uk
38. Buy life insurance
It’s grim to think about. But if anyone depends on you, make sure they’re supported financially if you die.
39. Make a will
A will makes sure your assets go to the right people when you die. Without one, the law decides. Make a will online.
40. Protect your income
Your ability to earn is your most valuable financial asset. Income protection insurance replaces part of your income if you can’t work because of illness or injury.
41. Get critical illness cover
A cancer diagnosis, stroke or heart attack could stop you working, but the bills keep coming. Critical illness cover pays a lump sum so your family isn’t left with financial obligations.
Conclusion
There you have it: 41 ways to grow and protect your money in 2026. Building wealth and passive income takes time and persistence. Protection matters just as much, because one bad event can undo years of saving.
Found this useful? Let us know in the comments.
Disclaimer: This is not financial advice. When investing, your capital is at risk.
Pedro is passionate about finance, marketing, and technology. He is a growth manager at several online projects and a former digital marketer for a fintech company.
