Reset your 2025 Finances

New year, new goals for 2025! Done with the Christmas drinking, food and certain family members. We move onto thinking about what do we want to achieve in this year, both personally and financially. Here are a few financial goals you can work towards in 2025.

1. Budget

Resetting for 2025, your new budget for spending each month. There are many apps or spreadsheets that allows you to track budgeted spending and actual spending. You will be amazed how much you can spend in one area without realising. Setup a standing order after you get paid to save some money each month. The less you have to spend, your spending will naturally go down.

2. Paying off debt

Some of us understandably may have splurged during Christmas travelling to see family, buying presents or a few treats that ended up in a credit card. Use this time to reset your finances and commit to paying down as soon as possible. This will be the higher interest debt you can take out, the quicker it's paid off, the less it spirals out of control.

3. Emergency fund

Having some money set aside to repair your car or and unexpected bill is important to keep you from being financially stretched. Within your budget, after debt is paid off; commit to saving a minimum of ￡1000 savings pot up to 6 months of income. This should be enough that if anything goes wrong, you have enough to meet short-term financial needs.

4. Investing

Lastly, once you have paid off debt, filled your emergency fund to an amount you fee comfortable. Start investing your savings and achieve a higher potential return. The biggest risk with keeping too much money in cash is inflation. The devaluing of money, year on year. To stop this, you want to invest and find assets that will minimum match inflation and other years beat inflation. This is how you grow wealth.

If any of these steps resonate with you, I’d love to help you take the first step towards achieving your financial goals. Let’s have a conversation about how you can plan for success in 2025.

Book a meeting or contact me via [email protected]

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.

Twelve Wealth Management Limited is an Appointed Representative of and represents only St. James's Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority). SJP Approved 20/12/2024