5 Tips to Hit your Finance Goals in 2025
Oghenerukevwe Odjugo
Finance Professional | LinkedIn Top Voice in Finance and Economy
Your loyalty is costing you!
Number 1 tip to hit your financial goals in 2025 is: Shop around!
A UK study in 2013 found that the average British person stayed with their bank for 17 YEARS! Interestingly, at the same time, the average British marriage lasted for 11.5 years.
The average (British) person is more loyal to their bank than they are to their spouse!
Similar studies have been repeated in various countries and the answer is similar: the average person remains with their bank for close to 20 years!
When was the last time you switched your bank?
We don't switch banks.
We find the bank that works and stick to it.
That loyalty is costing us A TON!
And the banks know this! Does this story sound familiar: "when you open a savings account with us, we will give you a special/bonus rate"... but in much smaller print they write "after 4 months, your interest rate will reset to the base rate (which is lower than the special rate)".
Banks reward new customers. Loyal customers rarely get such rewards. Your loyalty is costing you!
There are many stories of people making decent sums of money from welcome bonuses. Here's a story of how someone made $13,000 from welcome bonuses Made $13,000 last year from churning. Fun side hobby : r/passive_income
Here's another: Melbourne mum made $1500 from rewards programs | news.com.au — Australia’s leading news site
Or this extreme story How A Man Earned $300K From Credit Card Points
Some banks offer welcome bonuses to new customers who switch from another bank. These reward programs are fairly common in the UK and US.
Tip 2: Shop for best savings account
With so many comparison sites, it takes less than 5 minutes in today's world to find the savings account that pays the highest interest rate.
Check if you are getting the best rate for your savings!
In today's world of internet banking, you can open a bank account in as little as 5 minutes online. We don't do it simply because we're busy, tired and lazy. 1 simple way to overcome this laziness is to ask yourself, is someone offered to pay me $100 to surf on the net for 5 minutes and find a savings account and open an account, would I take the work?
If the answer is yes, you know what to do! The only difference is your savings will be the one paying you for finding a better interest rate.
Also remember to balance risk with reward. While you want to get the best interest rate any bank can offer, also consider the risk of saving with a bank that doesn't have the right insurance or with weak cybersecurity such that your account and account details can be easily hacked.
Ideally, you want to get better interest rates at a similar (or reasonable additional) risk. You don't want to save with a bank that will close down tomorrow.
Return OF capital is better than Return ON capital
The above quote means, it's better to get your money intact (return of capital) than to get the highest profit for your investment (return on capital). Because sometimes, an opportunity that promises the best profit, may not return your capital.
Tip 3: Switch Utility Providers
Here's a (not so) fun weekend activity for you: If you live in a developed nation, call up your utility provider and say you want to switch providers.
Sometimes, just calling your utility provider to say you want to switch providers will make them offer you a better rate. This seems hectic but it could save you $100s if not thousands of dollars which can take you a step closer towards your finance goals.
Tip 4: Treat Money Decisions like Underwear
Ok, that's a bit of a weird suggestion... but don't click away just yet ??
Social media is working extra hard to make us THINK we want more things than we would ordinarily want.
Like underwear, before you make an impulse purchase this year, ask yourself, if this thing I am about to buy will be completely hidden from the world (like my underwear), would I still buy it? If I cannot show off this experience or thing, would I still pay for it?
"Money is like underwear. You have to get a plan that's a good fit for you" - Oluwatosin Olaseinde
If you were the only person that could see the outcomes of your spending, would you still spend the way you do?
Make sure you spend your money in ways that fit you! Not other's expectations of you. Full credit to Oluwatosin Olaseinde for tip 4!
Tip 5: Invest
In 2020, I wrote this article: Saving Vs. Investing: What Should You Do? | LinkedIn
The gist of it is, while saving is great, we also need to invest to hit our long-term goals.
If you haven't started already, you might be wondering, how can you start investing in 2025?
Luckily, the ways to start investing hasn't changed in the last 3 years ?? So you can refer to these articles for insights on how to start investing today. The content remains evergreen
Bonus mention: The Secret to Profitable Investing | LinkedIn
Next week, we'll talk about how to build a budget you'll actually use! I promise, it'd be fun. See you then!
BTW: you should read this book if you haven't already
Research Associate, Institute for Oil, Gas, Energy, Environment and Sustainable Development// Bachelor of Laws (First Class Honours)
4 天前Insightful
Communications Lead at Action Health Incorporated
5 天前Shout out to Oluwatosin Olaseinde!
Rostering Coordinator at Maxlife Care | Expert in Employee Rostering and Workforce planning, strategy and reporting.
5 天前I felt targeted with the last paragraph haha. I will finish the book soon, I promise. Great post as always! ????