Much like our health, our finances are an area of our lives that many would love to improve.
When a new year hits, it can be overwhelming to pinpoint the exact area of our finances to focus on. Many of us have personal goals in mind, whether it’s buying our first house, venturing on our dream holiday, or finally getting around to planning our retirement. The challenge is choosing which ones to prioritise and understanding how to achieve them.
To help you decide which financial resolution could be your focus in 2025, we’ve provided our top picks below…
Embrace budgeting
We get it; budgeting is easier said than done, but that doesn’t mean you should bypass it as one of your financial resolutions! Whether we like it or not, budgeting is one of the best ways to be money-savvy. It provides a structured approach to managing our finances and helps limit overspending.
To get started on budgeting, make a list of any monthly expenses coming out of your account. You can check these by looking at your online banking, pension statements, household/utility bills, and receipts. In doing this, you can get an idea of where a portion of your funds are going and start to think about what you want to do with the income that’s left, whether that’s redirecting it to a savings account or utilising it to clear debts.
Start thinking about which of your monthly expenses are crucial and which are leisurely costs. Creating a list of your ongoing transactions can help you remove any unnecessary payments or subscriptions you could do without. Remember to check the cancellation policy of any company before you cancel it. This can not only help you gain firmer control of your finances and make the most of your available income.
It’s essential to set realistic goals when budgeting. Restricting yourself too much can be challenging, whereas not planning enough can limit progress. Think of an ideal amount you would like in your bank at the end of the month and consider how you achieve that goal. A simple step could be limiting the weekly shop to £75 rather than £100, leaving you with an additional £100 saved that month!
Make a will
Although not the cheeriest consideration, arranging a will is essential in managing your finances and ensuring everything is taken care of in the event of your passing.
It’s never too early to create a will, especially if you have family members who depend on you financially. Failure to arrange one could mean that your money or assets will be distributed according to intestacy laws, and your possessions could be given to recipients you wouldn’t have chosen.
You can write a will yourself; however, to make it valid, it must be formally signed by two independent witnesses over 18 years old. Your elected witnesses can be friends, neighbours, or colleagues but must not be beneficiaries or relatives.
When creating your will, you should consider who you would want to benefit from it, who you would like to organise your estate after your death (your executor), what should happen in the case of any benefactors passing before you and where the care of any children under the age of 18 lies. These key points should be addressed to ensure everything is in place as you want.
Boost your retirement savings
Your retirement is one of the most important things you will save for. Although you may not see the rewards from it for a number of years, how you plan and save for it impacts your lifestyle in later life.
To enhance your pension contributions and improve your retirement savings, start by reviewing your annual pension statement. Your pension statement is a yearly summary of the contributions made by you and your employer, in addition to your pot’s total value at the start and end of the year and a projection of what you might receive upon retirement. Typically, this is posted to you at the end of the year, but you can also request it directly from your pension provider.
Once you’ve looked at your existing contributions, think about what kind of retirement you’d like to enjoy and if your current pot value will fund this. You can then consider if there is room to increase your payments to meet your goals. Don’t forget to use the budgeting tips we mentioned earlier to help determine what spare income you have!
Remember, should you want expert assistance in achieving your retirement goals, you should always consider seeking financial advice. Independent financial advisers, like My Pension Expert’s team, will examine your goals and current circumstances to construct a strategy to help you succeed. Everyone’s circumstances are unique, and getting professional advice can give you peace of mind, ensuring you’re following a plan suited to your needs.
To get started with an initial call from a member of our team, contact us today.