The latest research, part of an annual study from savings and investment app Moneybox, asked 2000 people to reflect on their last year, and look ahead to their financial ambitions for 2025. It revealed;

  • 31% now think they are now in a better place to start saving more regularly.
  • 20% are confident they will be able to invest more this year, and 23% have already set clear financial goals for the year ahead.
  • 18% anticipate having their debts cleared in the next 12 months to help them regain a greater sense of control of their finances.
  • 15% are hopeful their finances will also improve if the economy gets stronger.
  • 53% of Brits are optimistic that 2025 is the year they will finally be able to get their finances back on track.

Whilst this speaks to a very positive outlook after several years of economic turbulence, the study also revealed that just over a fifth (22%) remain apprehensive about their financial prospects, with 42% of these still juggling to manage the increased cost of living.

 

Has financial pressure inspired a keener financial focus?

2024 was a tough time for price hikes across the board. Looking back to last year, those polled have reported a nine per cent increase in mortgage or rent payments, bringing the average to £532 a month, with the impact of rising rates hitting owners and being passed to tenants.

The study put a cash value on the impact of rising costs of living, with Brits reporting their outgoings on food and grocery rising 17%, amounting to £313 on average each month, and also feeling the effects of the much publicised hikes to gas and electricity adding £203 a month to the outgoings (18% up on reported costs a year ago).

Despite these challenges, the study highlighted that those polled did make meaningful strides towards a better financial future, reporting that they managed to commit 17% of their monthly income to their savings every month on average, up 3% from the previous year.

 

Financial Firsts for the confident and the cautious

Whether through ambition or necessity, it was a strong year for savvy Brits trying new strategies for a better financial future, with 17% managing to set aside an emergency fund and a proactive 15% creating a plan to achieve longer-term financial goals. 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.”

 

Positive switches unlock extra cash

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 per cent plan to cancel streaming services. When it comes to financial goals, building up a rainy-day fund (25%, and investing more (18%) were the most common ambitions among those polled.

A focused 14% are challenging themselves to save enough to max out their ISA allowance this year, with paying off debt and saving to be able to travel also making the list of popular goals.

 

Building on strong foundations

Looking back at last year’s financial aspirations for an end of year report, 37% of Brits managed to achieve all of the financial goals they set for themselves, an improvement compared to 2023 (34%). And whilst a quarter (24%) didn’t quite manage to tick all the goals they set for themselves off the list, they reported 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.”

 

-ENDS-

 

Notes to Editors

Methodology:

Consumer research was conducted by One Poll on behalf of Moneybox from from 19th – 24th December 2024.. A nationally representative sample of 2000 adults across the UK participated in the survey.

About Moneybox:

Moneybox is the award-winning app on a mission to help people build wealth with confidence so they can enjoy life, today and tomorrow. Launched in 2016 by co-founders Ben Stanway and Charlie Mortimer, the company has experienced rapid growth, and today has over £10bn in assets and a community of more than 1 million customers. Moneybox provides a range of great value products and services across saving, investing, home-buying, and retirement as well as helpful tools and educational content to help people manage and achieve their short, mid, and longer-term financial goals. Moneybox enables customers to set money aside in the way that suits them best using round-ups, regular deposits, or instant payments. In March 2022 Moneybox raised £35m in a Series D funding round, led by Fidelity International Strategic Ventures, existing investors Oxford Capital, CNP, Burda and Breega, plus new investor Polar Capital. The business reported its first full year of profitability in 2023.