Good New Year's resolutions: the one invaluable New Year’s money resolution you need to make in 2025

• Track every penny you spend for three months to gain deep insights into your financial habits
• Uncover hidden spending patterns and identify areas to cut back or prioritise
• Tracking helps you take control of your finances, from budgeting to saving for goals
• Simple methods like using apps, spreadsheets or notebooks can make tracking easy and effective

This new year, countless people will jot down resolutions to save more, spend less or finally start investing.

While these are worthwhile goals, they often feel vague or too daunting to sustain long-term.

So this year, why not embrace a single, actionable resolution that could truly transform your financial health, and track every penny you spend for three months?

It might sound tedious, but committing to this practice can provide insights into your finances like nothing else. Think of it as a financial detox - a way to see the full picture of your habits, priorities, and blind spots.

Whether you're trying to curb unnecessary expenses, save for a big purchase or build an emergency fund, tracking every penny is the foundation for all these goals.

Why tracking your spending works

Many people underestimate how much they spend on small, everyday purchases like takeout coffee or subscription services.

Over time, these seemingly minor costs can balloon into significant expenses. By tracking every penny, you’ll see exactly where your money goes - no guesswork, no surprises.

Tracking your spending often reveals habits you didn’t realise you had. For example, you might notice that you’re splurging on impulse buys after stressful workdays or that forgotten auto-renew subscriptions are quietly draining your account. Recognising these patterns empowers you to make intentional changes.

Budgeting often feels restrictive, but tracking is liberating. By seeing your actual spending patterns, you can identify areas where you’re overspending and areas you truly value.

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This means you can cut back in less important areas (e.g. unused gym memberships) while confidently spending on things that bring you joy (like travel or hobbies).

Once you know where your money is going, you’ll be in a better position to take further financial steps - like building a budget, starting an investment account, or paying down debt. Tracking spending isn’t just about cutting back; it’s about taking control.

How to track your spending effectively

You don’t need fancy tools to start tracking - just a method that fits your style. Use a notebook, a spreadsheet, or an app like YNAB, PocketGuard or Mint. The key is consistency, not complexity.

Track everything with no exceptions. This includes every purchase, from your rent or mortgage payment to the gum you buy at the petrol station. Categorise expenses (e.g. groceries, dining out, entertainment) to spot trends.

It’s easy to forget to log your spending, especially when life gets busy, so set a daily alarm or dedicate five minutes each evening to record your expenses.

At the end of each week, review what you’ve recorded. Which categories are higher than expected? Are there any surprises? Use this time to reflect and adjust.

Can I go longer than three months?

Of course, you can track your expenses much further into the year should you wish. But three months is long enough to reveal your expenses trends and give you a representative view of your habits.

It’s also a manageable timeframe - short enough to feel achievable but long enough to make a lasting impact. By the time spring rolls around, you’ll be armed with knowledge, confidence and a renewed sense of control over your money.

Ready to take control of your finances in 2025? Start tracking your spending today and see how it transforms your financial habits. Have you tried tracking your expenses before? Share your thoughts and experiences in the comments section.