How mindful spending could boost your financial wellbeing in 2026 and beyond

With Black Friday, Christmas, and New Year only just behind us, you might be feeling more financial pressure than usual in January. If so, you’re not alone.

According to research findings published by the Good Money Guide in 2025, 65% of UK adults admitted to overspending at Christmas, and 21% said they did not set a budget for the festive season at all.

This kind of mindless spending could lead to post-holiday guilt, regret and financial stress. It may also hamper your progress towards your long-term goals.

What’s more, Christmas isn’t the only time you might be tempted to spend impulsively. Splurging without thinking can quickly become a habit that may stretch your budget throughout the year.

Read on to learn why it’s so easy to fall into the trap of emotional spending and discover five smart ways to manage your money more mindfully in 2026, and build the future you desire.

Why you might spend without thinking (and regret it later)

Before you beat yourself up about your Christmas credit card bill or overdraft statement, know that most mindless spending isn’t about a lack of willpower or poor financial judgment.

To drill into why you might spend without thinking, you need to understand the psychological, emotional, and social factors at play – most of which operate below conscious awareness.

A desire to fit in

Humans are hard-wired to fit in and achieve a sense of belonging. We’re social creatures, and as such, our spending is often influenced by the people around us.

For example, you might feel compelled to buy a luxury car after seeing your neighbour driving theirs, or you may decide that you ‘have’ to buy the expensive watch you’ve seen your favourite celebrity wearing.

Even if you know your budget doesn’t allow for such extravagances, the emotional pull of belonging and ‘keeping up with the Joneses’ could override the rational budgeting part of your brain.

Emotional triggers

Buying something you want may seem like a quick and easy way to overcome unpleasant emotions such as stress, sadness and boredom.

For example, you might tell yourself that buying something new is your ‘reward’ for getting through a tough day.

Habit and routine spending

Habits are those behaviours you do routinely, often without any conscious thought. Perhaps you buy the same coffee on the way to work each day or instinctively grab your regular brand in the supermarket without considering more cost-effective options.

These purchases may seem small, but when you put them all together, they could add up and build to a significant amount of unnecessary spending over time.

Mindless spending can create financial and emotional difficulties over time

While you may be able to cope with occasional splurges, persistently spending without conscious intention could affect your financial and emotional wellbeing over time.

Left unchecked, mindless spending could:

• Undermine your long-term goals – Small, frequent expenses can quickly erode your disposable income, leaving you with fewer opportunities to save and invest for the future
• Lead to an unmanageable reliance on debt – When spending becomes habitual, it’s easier to lose track of what you can really afford, which could increase the risk of relying on credit cards and other types of borrowing
• Reduce your financial resilience – Overspending means you’ll have less room to adapt to life changes that could affect your finances, such as divorce or a job loss
• Stress and guilt – Mindless spending could undermine your sense of control and confidence in financial decision-making. This could contribute to anxiety about money and feelings of guilt or shame

In contrast, learning how to avoid or reduce mindless spending could free up more of your disposable income to save and invest, helping you build the future you desire.

5 smart ways to spend more mindfully this year

Happily, there are practical steps you can take to rein in your spending and manage your finances more mindfully in 2026 and beyond.

1. Identify your long-term goals – Resisting impulse buys is easier when you have a clear purpose for doing so. Ask yourself, ‘What do I value more, buying this holiday now or paying off my mortgage in the next five years?’
2. Pause before you buy – Give yourself time and space to weigh up the pros and cons of a purchase before hitting ‘buy’. Ask yourself, ‘Do I need this now?’ and ‘What might I have to give up to pay for this?’. The bigger the purchase, the more time you may need to reflect
3. Review your spending habits – Look at your monthly budget and identify areas of overspending. Ask yourself, ‘Could I make better use of this money by saving or investing it?’. You might find it useful to set up automatic transfers to your savings, pensions, and investments so that you can only spend what’s left after these accounts have been topped up for the month
4. Use cash more often – The rise in ‘frictionless payments’, such as using contactless cards and mobile phone apps, encourages spending without conscious awareness. Paying with physical cash when it’s possible and safe to do so could make transactions feel more ‘real’ and encourage you to think twice
5. Seek professional financial advice – Financial decisions are often tied up in emotions, which makes it hard to be objective about your spending habits. A financial planner can review your finances with fresh eyes and help you set achievable goals. They can also help you make the most of the money you save by spending more mindfully, for example, by creating an investment strategy that aligns with your long-term financial plans

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.