How to start a new year budget in January 2025

Cut back on grocery shopping and dining out

Grocery prices continue to climb, so it's crucial to embrace summer savings at the supermarket. Shop seasonally and locally to take advantage of January produce deals. Turn those bargain fruits and vegetables into refreshing summer meals that won't heat up your kitchen.

Pack your lunch for work and consider suggesting picnic catch-ups instead of café brunches - it's both budget-friendly and perfect for the summer weather. Plus, many meal-kit services offer new year promotions, helping you plan portions and control spending while trying new recipes.

Rethink your streaming services

If your entertainment budget got bloated over the holidays, now's the perfect time to streamline your subscriptions. Review which services you actually use and consider rotating between platforms instead of subscribing to everything at once. Most services now let you easily pause and resume subscriptions without losing your watchlist.

Need help deciding which streaming sites to pick? Here’s what’s new on the major platforms.

TIP: Take advantage of free services like ABC iView and SBS On Demand, or check out your local library's digital streaming options through Kanopy.

Tackle post-holiday debt

If your credit card took a beating during December, make a concrete plan to pay it down. Consider balance transfer offers with 0% interest periods. Break down your holiday debt into manageable monthly payments and commit to clearing it before interest-free periods expire.

Set up a holiday fund for 2025

While the memory of Christmas spending is still fresh, start preparing for next December. Set up an automatic transfer to a dedicated savings account - even $20 per week adds up to over $1,000 by Christmas. Look for savings accounts offering special bonus rates for regular deposits, turning your holiday preparation into an earning opportunity.

Review your subscriptions and memberships

January is the perfect time to audit your recurring payments. Check your bank statements for forgotten subscriptions, unused gym memberships, or services you signed up for during holiday sales. Many companies count on you to forget about trial periods or seasonal subscriptions - don't let these sneaky expenses drain your 2025 budget.

Compare energy providers

Summer energy bills can skyrocket when you're trying to stay cool. Make your home more efficient by using timers on non-essential devices and opting for fans over air conditioning where possible. 

Most importantly, don't stick with an expensive provider out of habit. it's worth comparing rates between energy providers and switching if you find a better deal.

Revamp your savings account

Make your money work harder in 2025 by checking your savings account's terms. Many banks offer high interest bonus and introductory rates, but you'll need to meet specific conditions to earn them. 

Think about splitting your savings strategy - keep your emergency fund accessible while taking advantage of term deposit rates, which are currently reasonably high for shorter terms. By taking this approach, you earn higher interest while maintaining enough flexibility to access your cash when needed.

Take a look at your home loan

With interest rates still high, it's time to optimise your mortgage. Use your offset account strategically - even your salary reduces interest while it sits there. 

Make extra repayments if possible, and don't hesitate to negotiate with your lender for a better rate. If they won't budge, consider refinancing - just factor in switching costs when calculating the benefits.

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